The IRS has announced that FATCA agreements have led to the exchange of financial information regarding US taxpayers with 177,147 institutions in more than 200 sovereign nations and legal jurisdictions. The list details those banks, investment houses, tax authorities and other financial institutions who have agreed to provide detailed account and transactional information regarding the holdings and activities of US taxpayers.
This includes more than 33,000 institutions in the Cayman Islands, and more than 5,000 financial houses and banks in Switzerland. Swiss accounts and banking in the Cayman Islands in particular have long been associated with secret offshore accounts and attempts by US taxpayers to hide income and assets. The list of 226 countries spans the globe, from Europe to the far east, from the middle east to the new world. There are no more safe havens.
Information is to be provided on all accounts exceeding $50,000 at any point of the year, and some reports establish the threshold at $200,000 for US expats.
This data is then compared to information provided by US taxpayers to the IRS on their FBAR and income tax forms, and discrepancies are sure to immediately trigger audits and substantial criminal tax exposure, as well as high penalties, interest and collection of back taxes.
The time is now for US taxpayers to come into compliance with FBAR reporting, and the disclosure of offshore accounts and assets via the OVDP or Streamlined programs. We invite you to contact us for a free and substantive consultation and learn about the protections of the attorney-client privilege by calling 866-631-3470.
Related Posts: FBAR and the Reporting of Foreign Assets Required by the IRS, IRS Warning Relating to FBAR and those with Offshore Bank Accounts and Assets, Over 100 Swiss Banks Alone Have Signed US FATCA Disclosure Agreement, IRS Data Exchange with Foreign Entities Affecting US Expats Overseas