In April 2003, the Financial Crimes and Enforcement Network (FinCEN) delegated enforcement authority of FBAR to the IRS; therefore the IRS is now responsible for:

• Enforcing filing requirements
• Investigating possible civil violations
• Assessing and collecting civil penalties
• Issuing administrative rulings

Foreign Account Tax Compliance Act (FATCA), which was included as part of the HIRE Act of 2010, was enacted by Congress to target non-compliance by U.S. taxpayers using foreign accounts… “While elements of the legislation have been in effect since 2011, the main elements of FATCA reporting began in 2015 and will continue to unfold over the next few years.” Douglas W. O’Donnell, Commissioner of the Large and Midsize Division of IRS.

There are similarities, but also very different filing requirement thresholds and definitions of applicable assets for each of these forms:

• FBAR Form FinCEN Form 114, Report of Foreign Bank and Financial Accounts (formerly TD F 90-22.1)
• FATCA Form 8938, which discloses specified foreign financial assets.
• AND, beginning in 2017, there are new filing dates:
• Fincen Form 114 (the electronic FBAR) is now changed from June 30 to April 15. For the first time, taxpayers who must file this form will be allowed a six-month extension of time to file.
• For partnership returns- the new due date is March 15 (for calendar year partnerships) and the 15th day of the third month following the close of the fiscal year (for fiscal year partnerships).
• For corporation returns- the new due date is the 15th day of the fourth month following the close of the corporation’s tax year.

Course Objectives:

Congress passed the Bank Secrecy Act in 1970 as the first laws to fight money laundering in the United States. The Bank Secrecy Act (BSA) gives the Department of Treasury authority to collect information from United States persons who have financial interests in or signature authority over financial accounts maintained with financial institutions located outside of the United States. (FinCEN) 114, Report of Foreign Bank and Financial Accounts (FBAR) is a part of the Bank Secrecy Act and information can be found on the IRS website as well as the Financial Crimes Enforcement Network.  In April, 2003, the Financial Crimes and Enforcement Network (FinCEN) delegated enforcement authority regarding the FBAR to the Internal Revenue Service (IRS). The IRS is now responsible for:

• Investigating possible civil violations;
• Assessing and collecting civil penalties; and
• Issuing administrative rulings.

Foreign Account Tax Compliance Act (FATCA), which was included as part of the HIRE Act of 2010, was enacted by Congress to target non-compliance by U.S. taxpayers using foreign accounts and filing requirements began in 2011.  “While elements of the legislation have been in effect since 2011, the main elements of FATCA reporting began in 2015 and will continue to unfold over the next few years. As a result, this year IRS began preparation for application of the first full substantive wave of FATCA data for compliance purposes, specifically for the tax year 2014 filing population,” Douglas W. O’Donnell, commissioner of the IRS’s Large Business and International Division.

The US Government uses FBAR & FATCA as a tools to identify persons who may be using foreign financial accounts to circumvent United States law. Information contained in FATCA & FBARs can be used to identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. 

Our goal includes providing you with the tools to keep the taxpayer and the return preparer out of trouble with the US government.

Course Outline:

General

• Due Diligence of Return Preparer
• What are the similarities of FBAR and FATCA?
• What are the differences in FBAR and FATCA forms?
• What are the differences in FBAR and FATCA filing requirements?

FBAR

• Determine who must file the FBAR.
• Determine who is exempt from the FBAR filing requirements.
• Determine the FBAR filing requirements.
• What is a “financial interests?”
• What are defined as “Foreign Bank Accounts and Financial Accounts?”
• What form number is required?
• What is the 2016/2017 filing date?
• Understand the civil and criminal penalties that may be applicable for ?noncompliance with the FBAR filing requirements

FATCA

• What is the definition of “foreign assets?”
• What is the filing requirement thresholds?
• What is the difference in the filing thresholds for “US Persons” who live inside the ?US and those who live in foreign countries?
• What form number is required?
• What is the 2016/2017 filing date?
• What are the civil penalties for failure to file?

What You Get:

• Training Materials
•  Live Q&A Session with our Expert
•  Participation Certificate
•  Access to Signup Community (Optional)
•  Reward Points

Who Will Benefit:

• CPA, EA, and ATTORNEY
• Persons who prepare tax returns
• Persons who deal with IRS, Federal Agencies, State Agencies
• Employees/Managers of Tax Departments
• Employees/Managers who Manage Banking Operations
• Anyone responsible for responding to IRS correspondence