Foreign Financial Institution FATCA Reporting Guidelines Published

In 2010, the U.S. government enacted the Foreign Account Tax Compliance Act (FATCA), containing provisions that would require, starting in 2013, foreign financial institutions (FFIs) to provide to the IRS the personal information of any United States persons holding accounts at that FFI. See http://rroyselaw.com/blog1/2012/01/12/third-offshore-voluntary-disclosure-program-announced-by-irs/.The Proposed Treasury Regulations published on February 8th push the effective…

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Corporate Reporting of Transactions Affecting Basis

Under Section 6045B of the Internal Revenue Code of 1986, as amended (the “Code”) many corporations are required to file a new return (Form 8937) with the IRS in connection with non-dividend distributions and other corporate actions affecting stock basis. More specifically, starting in 2011, the issuer of “specified securities” shall file a return with…

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Third Offshore Voluntary Disclosure Program Announced by IRS

In 2009 and 2011 the Internal Revenue Service (IRS) created two temporary initiatives to allow U.S. taxpayers with unreported income relating to undisclosed foreign bank or financial accounts to make a voluntary disclosure to get current with their taxes and information filing obligations. On Monday, January 9, 2012, the IRS announced a third initiative with…

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IRS Releases Final Rules Applying Section 108(e)(8) COD Income to Partners and Partnerships

On Nov. 15, 2011 the Internal Revenue Service (IRS) released guidance on the application of the Section 108(e)(8) to cancellation of indebtedness (COD) income of partners and partnerships (the “Guidance”). See T.D. 9557. The new rules are effective Nov. 17, 2011. Generally, Section 108(e)(8) provides that when a partnership transfers a capital or profits interest…

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