FATCA Compliance

Overview

“Every individual I have met at Blank Rome is impressive. They are strong in all areas. They are my first choice as counsel and will remain so.”

— Client feedback, Chambers USA

All U.S. taxpayers with non-U.S. bank or financial accounts (or any foreign assets) have been affected by fluctuations in tax rules. Most importantly, the filing requirements of the Report of Foreign Bank and Financial Accounts (“FBAR”) (form TD F 90-22.1) and the Foreign Account Tax Compliance Act (“FATCA”) (form 8938). These must be filed annually with personal tax returns.

Our FBAR and FATCA compliance team understands the complex challenges you face with foreign asset reporting regulations, the IRS voluntary disclosure program, and the disclosure and withholding requirements imposed on foreign financial institutions. Because our team includes attorneys who focus on U.S. and international tax law, white collar defense and investigations, federal tax controversies, and banking regulations, we’re able to help you with all the potential implications of non-compliance, some of which could result in significant penalties.

Offshore Tax Compliance

FATCA also requires foreign financial institutions to register with the IRS and annually disclose to the IRS the names and account information of U.S. accountholders. Those that refuse to register and make such disclosures are subject to a 30 percent withholding tax on U.S. source payments. The IRS issued finalized FATCA regulations in January 2013, and FATCA’s withholding and disclosure provisions began January 1, 2014. 

While the IRS and Justice Department continue their global enforcement campaign against foreign banks and tax haven jurisdictions, the IRS offers the 2014 Offshore Voluntary Disclosure Program which provides amnesty to encourage you to disclose any foreign bank accounts and avoid criminal prosecution.

Blank Rome's offshore tax compliance team can also advise foreign financial institutions and individuals as to their obligations under U.S. tax law and help to resolve potential areas of exposure. 

The team also publishes Tax Controversy Watch, a blog covering the latest developments in the FBAR and FATCA field.

How We Can Help

  • corporations, partnerships, limited liability companies, and joint venture arrangements (including exempt organizations/for-profits)
  • taxable and tax-free reorganizations, liquidations, mergers, and acquisitions
  • U.S. federal, state, and local civil and criminal tax controversies, including audits, administrative appeals, and litigation
  • executive compensation arrangements, including stock options and other stock-based plans
  • taxation of banks, financial institutions, financial instruments, real estate transactions (including REITs, new market tax credits, real estate funds and joint ventures), private investment funds, mutual funds, trust and estates, tax-exempt and philanthropic organizations
  • IRS tax controversy involving tax-exempt organizations
  • strategic state and local tax-saving opportunities
  • debt workouts
  • tax shelters, estate planning, and charitable giving
  • tax consequences regarding matrimonial matters
  • tax issues related to maritime matters
  • international tax matters, including inbound, outbound and passive investments, transfer pricing, tax residency, and establishing foreign entities
  • preparation of legal opinions and requests for letter rulings from the Internal Revenue Service and other government authorities<

What Sets Us Apart

  • Chambers USA has ranked Blank Rome nationally and internationally for corporate transactions, employee benefits and executive compensation, as well as real estate deals and fund formation.
  • Members of Blank Rome’s tax group have previously served as CPAs and members of “Big Four” national tax practices.
  • Our attorneys also serve as adjunct professors in law schools and graduate tax programs.
  • We’re comprised of former government officials from the IRS, Department of Justice and the Treasury who have strategic relationships within Congress and who have presented before the Senate Finance and House Ways and Means Committees.
  • We frequently represent clients in rule-making proceedings and shape and advance tax policy objectives before the U.S. Treasury Department, including the Internal Revenue Service.