Frost & Associates, Attorneys at Law
Call Today 202-618-1873

Senate panel takes aim at 'gaping loopholes' in FATCA

Americans who have had to deal with the headaches resulting from enforcement of the Foreign Account Tax Compliance Act might tend to disagree with the assessment of the law issued this week by U.S. Senate investigators.

The report came out on Tuesday and the Senate Permanent Subcommittee on Investigations doesn't appear to pull its punches regarding FATCA. Members say the law, which was passed in 2010 with the stated objective of countering suspected tax evasion by Americans using offshore bank accounts, has "gaping loopholes" that shell corporations could easily take advantage of.

Specifically, the subcommittee says that FATCA rules implemented by the Obama administration allow foreign banks to forego reporting about accounts held by foreign shell entities, even if American taxpayers own and control them. The panel says the law doesn't allow for such largesse and that the Treasury Department and the Internal Revenue Service should be taking steps now to close the loopholes.

A Treasury Department spokeswoman, commenting on the report, said this week that the implementation rules reflect a desire to strike a balance between strong enforcement without creating too much difficulty for foreign banks.

But some critics unaffiliated with the Senate panel say the criticism of the rules are valid. They say they could actually encourage some U.S. taxpayers to evade taxes through shell companies.

Any confrontation with the IRS over taxes can be fraught with tension and create anxiety. Protection of your rights and resolution of the issues should be a priority and may be most effectively achieved if you consult with an attorney experienced in such matters.

Source: Reuters, "Senate panel faults new U.S. law to fight offshore tax dodging," Patrick Temple-West, Feb. 27, 2014

No Comments

Leave a comment
Comment Information
Every Tax Problem Has A Solution

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Contact us today!

Frost & Associates, Attorneys at Law
1629 K Street NW
Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway
Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 202-618-1873
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-621-7169
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Map & Directions

Google+
Find us on...
  • Facebook
  • Twitter
  • Linked In