Offshore Accounts, FBARs, FATCA and IGAs

The IRS continues to close in on those who have chosen to flagrantly or, in many cases, somewhat innocently, ignore United States reporting and filing requirements in three basic tax and financial reporting areas on:

  • IRS Form 1040
  • Form FinCen 114 (Foreign Bank Account Report-FBAR)
  • FATCA (Foreign Account Tax Compliance Act) Form 8938 for all overseas investment assets, not simply bank accounts.

With the increasing implementation of the FATCA regulations through Intergovernmental Agreements (IGAs) more information than ever before is flowing to U.S. taxing authorities/IRS on the accounts of United States citizen/equivalent account owners.

While much remains in transition, tax lawyer Michael S. Adelman can state unequivocally based on his almost five decades of experience, "Over time this situation will only worsen for those who chose to ignore THREE chances to come into full compliance with offshore account reporting requirements. Foreign account holdings will be increasingly disclosed to United States authorities. Administratively and judicially, the failure to take advantage of what, if done properly, guided by an experienced criminal tax/OVDP defense attorney, would amount to complete forgiveness of existing criminal exposure is likely to be viewed the other way, as a flagrant circumstance essentially increasing that exposure, especially as years pass with further noncompliance."

An Increasingly "Small World"

Do not take any special comfort if you have undisclosed accounts or foreign-based assets in one of the fewer and fewer nations NOT on these lists. For future tax compliance purposes, the IRS is sparing no effort in making it a truly "small world."

If nothing else on this website makes you contact Mr. Adelman about the OVDP, perhaps the United States Department of Justice on the DOJ website will: The United States Department of Justice. Or maybe this (especially if your specific foreign financial institution — FFI — is already on this list, which is regularly updated by the IRS): Foreign Financial Institution or Facilitators

Even if your FFI is not YET identified, it may be hugely financially advantageous to find out more about whether you might qualify for the streamlined OVDP. But it becomes vital that you immediately email attorney Adelman, if you have received a FATCA or other letter from your offshore financial institution.

Nations That Have Signed IGAs With The U.S.:

Jurisdictions with which the U.S. Treasury is in the process of finalizing an IGA, has finalized an IGA, is actively engaged in a dialogue toward concluding an IGA or with which Treasury is working to explore options for an IGA follow.

The following jurisdictions are treated as having an intergovernmental agreement in effect (scroll down for a list of jurisdictions with agreements in substance):

Jurisdictions that have signed agreements:

Model 1 IGA

  • Australia (4-28-2014)
  • Bahamas (11-3-2014)
  • Barbados (11-17-2014)
  • Belarus (3-18-2015)
  • Belgium (4-23-2014)
  • Brazil (9-23-2014)
  • British Virgin Islands (6-30-2014)
  • Bulgaria (12-5-2014)
  • Canada (2-5-2014)
  • Cayman Islands (11-29-2013)
  • Colombia (5-20-2015)
  • Costa Rica (11-26-2013)
  • Croatia (3-20-2015)
  • Curaçao (12-16-2014)
  • Cyprus (12-2-2014)
  • Czech Republic (8-4-2014)
  • Denmark (11-19-2012)
  • Estonia (4-11-2014)
  • Finland (3-5-2014)
  • France (11-14-2013)
  • Georgia (7-10-2015)
  • Germany (5-31-2013)
  • Gibraltar (5-8-2014)
  • Guernsey (12-13-2013)
  • Holy See (6-10-2015)
  • Honduras (3-31-2014)
  • Hungary (2-4-2014)
  • Iceland (5-26-2015)
  • India (7-9-2015)
  • Ireland (1-23-2013)
  • Isle of Man (12-13-2013)
  • Israel (6-30-2014)
  • Italy (1-10-2014)
  • Jamaica (5-1-2014)
  • Jersey (12-13-2013)
  • Kosovo (2-26-2015)
  • Kuwait (4-29-2015)
  • Latvia (6-27-2014)
  • Liechtenstein (5-19-2014)
  • Lithuania (8-26-2014)
  • Luxembourg (3-28-2014)
  • Malta (12-16-2013)
  • Mauritius (12-27-2013)
  • Mexico (4-9-2014)
  • Netherlands (12-18-2013)
  • New Zealand (6-12-2014)
  • Norway (4-15-2013)
  • Philippines (7-13-2015)
  • Poland (10-7-2014)
  • Portugal (8-6-2015)
  • Qatar (1-7-2015)
  • Romania (5-28-2015)
  • St. Vincent and the Grenadines (8-18-2015)
  • Singapore (12-9-2014)
  • Slovak Republic (7-31-2015)
  • Slovenia (6-2-2014)
  • Spain (5-14-2013)
  • South Africa (6-9-2014)
  • South Korea (6-10-2015)
  • Sweden (8-8-2014)
  • Turkey (7-29-2015)
  • Turks and Caicos Islands (12-1-2014)
  • United Arab Emirates (6-17-2015)
  • United Kingdom (9-12-2012)
  • Uzbekistan (4-3-2015)

Model 2 IGA

  • Austria (4-29-2014)
  • Bermuda (12-19-2013)
  • Chile (3-5-2014)
  • Hong Kong (11-13-2014)
  • Japan (6-11-2013)
  • Moldova (11-26-2014)
  • Switzerland (2-14-2013)

Jurisdictions that have reached agreements in substance as of June 30, 2014, and have consented to being included on this list (beginning on the date indicated in parentheses):

Model 1 IGA

  • Algeria (6-30-2014)
  • Anguilla (6-30-2014)
  • Antigua and Barbuda (6-3-2014)
  • Azerbaijan (5-16-2014)
  • Bahrain (6-30-2014)
  • Cabo Verde (6-30-2014)
  • China (6-26-2014)
  • Dominica (6-19-2014)
  • Dominican Republic (6-30-2014)
  • Greenland (6-29-2014)
  • Grenada (6-16-2014)
  • Guyana (6-24-2014)
  • Haiti (6-30-2014)
  • Indonesia (5-4-2014)
  • Malaysia (6-30-2014)
  • Montenegro (6-30-2014)
  • Panama (5-1-2014)
  • Peru (5-1-2014)
  • St. Kitts and Nevis (6-4-2014)
  • St. Lucia (6-12-2014)
  • Saudi Arabia (6-24-2014)
  • Serbia (6-30-2014)
  • Seychelles (5-28-2014)
  • Thailand (6-24-2014)
  • Turkmenistan (6-3-2014)
  • Ukraine (6-26-2014)

Model 2 IGA

  • Armenia (5-8-2014)
  • Iraq (6-30-2014)
  • Nicaragua (6-30-2014)
  • Paraguay (6-6-2014)
  • San Marino (6-30-2014)
  • Taiwan (6-23-2014)*

*Consistent with the Taiwan Relations Act, the parties to the agreement would be the American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States.

Jurisdictions that have reached agreements in substance as of Nov. 30, 2014, and have consented to being included on this list (beginning on the date indicated in parentheses):

Model 1 IGA

  • Angola (11-30-2014)
  • Cambodia (11-30-2014)
  • Greece (11-30-2014)
  • Kazakhstan (11-30-2014)
  • Montserrat (11-30-2014)
  • Trinidad and Tobago (11-30-2014)
  • Tunisia (11-30-2014)

Model 2 IGA

  • Macao (11-30-2014)