THE IRS RACE FOR INTERNATIONAL TAX COMPLIANCE

Transcription

1 Today s session THE IRS RACE FOR INTERNATIONAL TAX COMPLIANCE Wednesday, March 27, :00 to 2:30 pm EST Speakers Steve Waserstein, Partner, WNF Law, P.L. Waserstein Nunez & Foodman Daniel Foodman, Partner, WNF Law, P.L. Waserstein Nunez & Foodman FIBA AML Certification Continuing Education Credits: 1.5

2 FIBA AMLCA Certification Gain practical knowledge of the risk-based approach to comply with BSA/AML/OFAC regulatory requirements Online In person In House Spanish English 2

3

4 Steve L. Waserstein Founder and Partner WNF Law, P.L. Waserstein Nunez & Foodman 1111 Brickell Avenue, Suite 2200 Miami, FL Steve L. Waserstein focuses his practice on tax, corporate and real estate law. His practice includes United States and International tax and estate planning advice and implementation; wealth preservation planning and implementation; United States tax compliance; the representation of businesses or individuals being investigated by or in civil or criminal tax controversies against the Internal Revenue Service and Department of Justice. Mr. Waserstein's clients are individuals and businesses from around the world including the United States, Latin America, Europe and the Middle East. 4

5 Daniel Foodman is an accomplished trial lawyer with a focus in civil and criminal litigation, taxation, and anti-money laundering compliance. Mr. Foodman is a former state prosecutor. He is a certified as a public accountant (CPA), a certified fraud examiner and a certified anti-money laundering specialist who utilizes his law enforcement and investigative experience and his background in accounting and taxation to create innovative legal strategies for clients in both civil and criminal matters. During his career he has tried to completion over forty cases ranging from misdemeanors to homicides, including a three week national televised trial. Daniel Foodman Founder and Partner WNF Law, P.L. Waserstein Nunez & Foodman 1111 Brickell Avenue, Suite 2200 Miami, FL df@wnflaw.com 5

6 THE IRS RACE TOWARD INTERNATIONAL TAX COMPLIANCE 6

7 AGENDA The New Focus Why Focus On International Tax Compliance The Set Up For Prosecutions How They Find You IRS Tools No Place To Hide Who Are The Targets What Happens When You Lose The Race Against The IRS How To Comply With The IRS You Still Have A Chance Before You Lose The Race 7

8 The New Focus Every few years the U.S. government pursues a new threat Corruption FCPA (Foreign Corrupt Practices Act) Drugs AML (Anti-Money Laundering) Terrorism The Patriot Act (and Anti Terrorist Financing) The new threat U.S. solvency. The new focus Tax Compliance. The new law FATCA This is a global issue. 8

9 Why Focus on International Money Bankrupt Countries Tax Compliance? U.S. estimates it has lost and will continue to lose billions if not trillions of dollars from accounts and holdings outside the U.S. For the most part universal cooperation including U.K., Canada, Germany, Italy, Brazil, Mexico, Spain. Ease of gathering information with technology 9

10 The Set Up for Prosecutions U.S. gathers information from Lichtenstein and UBS establishing substantial amounts of unreported funds IRS adopts Voluntary Offshore Disclosure Initiative in First opportunity for non-compliant U.S. taxpayers to voluntarily comply with reduced penalties and no criminal prosecution In March 2010, U.S. passes FATCA (Foreign Account Tax Compliance Act). FATCA requires foreign financial institutions to report U.S. account holders. Law became effective January 1, IRS adopts another Voluntary Offshore Disclosure program. The program expired but IRS extends it indefinitely until further notice Penalties reduced from 75% to 27.5% & no criminal prosecution US Embassies notifying citizens abroad of tax reporting requirements IRS using data mining software 10

11 How They Find You? IRS Whistleblower program IRS setting up shop in foreign countries Reporting under FATCA begins in March,

12 IRS Tools - No Place to Hide OVDP - Extract from OVDP application: FATCA Explain all face to face meetings, and any other communications you had regarding the accounts or assets with the financial institution(s). Also include face to face meetings or communications regarding the accounts or assets with independent advisors/investment managers not from the financial institution(s) where the funds are held. Provide the names, locations and dates of these meetings and/or communications. Foreign Financial Institutions have been deputized Reporting by the Institutions Inter Government Agreement Tax Treaties and Exchange of Information Treaties Whistleblower Examples: Bradley Birkenfeld (104 million USD) Audits and Cooperating Witnesses Other professionals attorneys, bankers, consultants or accountants Global Cooperation Data Mining E-Trak (IRS) Social Media / Face Book / Linked-in 12

13 Who are the Targets? U.S. Citizens or Residents Living abroad Doing Business abroad Passive Investments/ Accounts abroad Advisors Attorneys, Accountants, Consultants Promoters Banks / Financial Institutions/Trust Companies Bankers Compliance Officers are in the middle of this morass 13

14 What Happens When You Lose The Race Against The IRS? Individual Taxpayers Civil Penalties Failure to File Failure to Pay FBAR Failure to File 5471 Failure to File Criminal Prosecution Prison Restitution Banks & Financial Institutions Non-compliance with FATCA 30% Withholding Correspondent Bank Status Reputation Risks Bankers/Attorneys, Advisors 14

15 How To Comply With The IRS You Still Have A Chance Before You Lose The Race? Do not bury head in sand Do not try to outsmart the government, i.e. transfer to family members or entities Renouncing Citizenship OVDP Pre Clearance OVDP Application/Questionnaire Tax Returns/Amended Returns Tax, Interest and Penalties Calculations Substantial savings on Penalty Avoid Prosecution The window is closing rapidly. Do not be left behind 15

16 Thank You Questions 16

17 Florida Based Globally Connected THANK YOU! (305) FIBA