Tax & Accounting Blog

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

FATCA: Switzerland and Japan sign statements for cooperation with the U.S. in FATCA implementation

The United States Treasury Department has issued a joint statement with Japan, and a joint statement with Switzerland, for intergovernmental cooperation in the implementation of the U.S. Foreign Account Tax Compliance Act (FATCA).   In both Japan and Switzerland, financial institutions may not be able to comply with all of the reporting, withholding and account closure … Read More

NEW W-8IMY FORM:  DRAFT RELEASED BY IRS

NEW W-8IMY FORM: DRAFT RELEASED BY IRS

The third in a series of revised Forms W-8 has been released, in draft form, by the IRS.  The draft Form W-8IMY, Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding, is part of the process of making the W-8 series of forms serve for purposes of compliance … Read More

New French Law on the Taxation of Trusts

New French Law on the Taxation of Trusts

On July 29, 2011, France enacted a new law on the taxation of trusts. Under the new law, a trustee must disclose certain information about the trust if the trust has a French settlor, beneficiary or French assets. The trustee must file the disclosure by June 15. The government was to provide further details on how to … Read More

Medicare Surtax on Net Investment Income Goes into Effect on January 1, 2013

Medicare Surtax on Net Investment Income Goes into Effect on January 1, 2013

Under the 2010 Health Care reform legislation, a Medicare tax will, for the first time, be applied to investment income beginning in 2013. A new 3.8% tax will be imposed on net investment income of single taxpayers with AGI above $200,000 and joint filers over $250,000. Net investment income is interest, dividends, royalties, rents, gross … Read More

Form 8938 Guidance Issued

Form 8938 Guidance Issued

In December 2011, the IRS released the new Form 8938 used to report specified foreign financial assets. The form was released in response to the temporary regulations issued for IRC 6038D, as part of the larger crackdown on taxpayers with under reported foreign assets. The new form is filed with the taxpayer’s individual return if their specified … Read More

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The Tax Gap – IRS Oversight Board’s Annual Report (June 2012)

The IRS Oversight Board issued its annual report to Congress for 2011 in June (posted June 5, 2012). The report notes that the estimated net tax gap grew nearly $100 billion from 2001 (when the gap was last estimated) to 2006. Of particular interest is the Board’s assessment of the tax gap and IRS’ efforts to … Read More