Foreign Account Tax Compliance Act (FATCA)

Assistance With FATCA Compliance and Reporting

The Foreign Account Tax Compliance Act (FATCA) is aimed at foreign financial institutions and other financial intermediaries – such as private equity funds, hedge funds, and similar entities – to prevent tax evasion by U.S. taxpayers who have offshore accounts. FATCA calls for increased financial transparency, accurate account identification, increased reporting, and substantial penalties for noncompliance.

Under FATCA, financial institutions and other payors of U.S. source income, including those outside the United States, must identify accounts held by U.S. taxpayers and obtain substantial information about the account holders in order to comply with the law and IRS reporting requirements. Account holders who fail to comply will be subject to an automatic withholding tax of 30 percent on U.S. source payments. Payers of such streams of income are liable for the 30 percent tax if not withheld, plus penalties and interest, when otherwise due.

Complying with FATCA Requires Expert Guidance

Crowe Horwath LLP offers personalized assistance with FATCA compliance and reporting. We help financial institutions and other affected taxpayers complete the necessary filings, emphasizing information accuracy and minimizing exposure to FATCA assessments and unwanted scrutiny.

Streamlined Reporting

We can help develop best practices and tools to identify reportable accounts, streamline information gathering, and support reporting and electronic filing requirements such as IRS Forms 1042 and 1042-S (related to reporting payments made to foreign persons).

Practical Consulting

Crowe offers services from onboarding customers and investors to ongoing maintenance. We also design customized processes to collect information, warehouse it, and assist with the completion of IRS Forms W-8 and W-9 for reporting taxpayers, their customers, and investor constituents.

Effective Remediation Strategies

If process remediation is needed, experienced Crowe professionals provide responsive, tailored assistance in this area.

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John M. Kelleher