List of Countries Currently Eligible to Automatically Receive 2014 Account Information from the U.S. Pursuant to FATCA
The IRS has already begun receiving information regarding tax year 2014 from countries around the world who have agreed to comply with FATCA. Some of those countries negotiated reciprocal agreements to also receive information from the US regarding their taxpayers with U.S. accounts. In Latin America, these countries include Brazil, Colombia, Costa Rica, Honduras, Mexico, Portugal and Spain. Prior to actually receiving information from the U.S., however, the tax authorities in those countries must demonstrate their capability to keep the information secure and use it for tax purposes only. According to the Wall Street Journal, the IRS has said that the following 34 countries, including Brazil, Mexico and Spain, have already met all the requirements to receive information from the IRS now:
• Czech Republic
• Isle of Man
• New Zealand
• South Africa
• United Kingdom
What does FATCA mean for U.S.-Connected families?
Now more than ever, international families with U.S. investments or a member who is or might become a U.S. tax resident, and who have not received current legal advice regarding their wealth from an experienced, independent and practicing U.S. international tax attorney, should act quickly to ensure that their wealth is properly structured for maximum tax efficiency and legal advantage. U.S. citizens and tax residents, living in the U.S. or abroad, who have accidentally or intentionally failed to report income, bank accounts, corporations, trusts or other assets outside the U.S. are increasingly at risk of being detected, fined and in some cases even incarcerated and deported.
When given the opportunity, we prefer to help our clients proactively arrange their affairs to reduce their tax burden to the legal minimum. Anyone unsure whether they have fulfilled all their tax and information reporting obligations should seek the privileged advice of a U.S. tax attorney as soon as possible to determine the safest and most economical way of resolving their non-compliance prior to detection.
Contact us at 305-444-7662 or Ed@AristaLaw.com for more information on how we can help you and your clients achieve maximum tax efficiency and legal advantage.