International Tax: FATCA, CRS & CARF

 

The U.S. Foreign Account Tax Compliance Act (FATCA) seeks to detect U.S. tax evaders who maintain financial accounts either directly in offshore accounts and investments or indirectly through ownership of foreign entities. Similarly, the Common Reporting Standard (CRS) and Crypto-asset Reporting Framework (CARF) seek to improve tax compliance through the automatic exchange of information between participating jurisdictions.

The laws impact financial institutions, crypto-asset service providers, companies outside the financial industry, and individuals. FATCA, CRS, and CARF compliance issues impact organizations and individuals in the following ways:

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• Financial institutions and Reporting Crypto-asset Service Providers (RCASPs) must create internal compliance programs and undertake annual reporting to their national tax authority

• Companies outside the financial industry must provide financial institutions and RCASPs with complex IRS withholding forms and/or self-certifications for existing and new accounts

• Individuals must also provide IRS withholding forms and/or self-certifications

• Individual account holders must determine whether they are considered a "U.S. Person" and in which jurisdictions they are considered residents

I work in tandem with CFOs, tax directors, and in-house counsel to develop, customize, implement, and evaluate internal compliance programs and procedures to ensure compliance with international tax transparency regimes.  My representation includes the following:

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• Advise fintechs, banks, hedge funds, asset managers, trusts and fund administrators regarding FATCA, Intergovernmental Agreements (IGAs), CRS and CARF

• Evaluate financial institutions’ legal entity structures (including deal structures) for FATCA, CRS and CARF classifications

• Register client entities with the IRS (obtain Global Intermediary Identification Numbers ("GIINs")) and in IGA and CRS multi-jurisdictional portals

• Complete IRS forms and self-certifications

• Draft Sponsoring Entity Agreements

• Counsel and prepare clients for IRS, IGA, CRS and CARF multi-jurisdictional reporting

• Communicate with the IRS and foreign tax authorities to resolve client issues

• Develop corporate policies and procedures and compliance training

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For more information, you may contact me via my site contact page or directly via e-mail: elizabeth@elizabethmcmorrowlaw.com.

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