Hong Kong Signs FATCA Agreement with U.S.
FATCA Hong Kong: Many nations, including the Unites States and Hong Kong are working to reduce and minimize offshore tax evasion. FATCA (The Foreign Account Tax Compliance Act) was developed to facilitate financial transparency. Numerous countries have agreed to take part in FATCA (Foreign Account Tax Compliance Act) and the number of countries continues to grow.
In 2014, Hong Kong signed the FATCA Hong Kong Agreement with the United States.
Hong Kong has made it known that they are seeking to comply and enforce International Criminal Tax Laws for U.S. Taxpayers they believe are not in compliance.
Hong Kong FATCA Agreement
Hong Kong has represented that it wants to help promote compliance of IRS tax law by any Hong Kong Citizen or Resident who also has a U.S. Foreign Bank Account reporting requirement.
Many U.S. Account Holders (U.S. Citizens, Legal Permanent Residents, Visa Holders) who reside in Hong Kong have mistakenly or intentionally misrepresented their status when they initially opened their Hong Kong account.
U.S. Persons are at Risk
The formalization of the FATCA Agreement will cause a major headache for Hong Kong citizens who are also U.S. Citizens, Legal Permanent Residents, or Visa Holders and have not updated the Hong Kong banks of their U.S. status.
Whether a U.S Citizen, Legal Permanent Resident, or certain Visa Holders reside in the U.S., Hong Kong, or a third-party country does not matter when it comes to Foreign Bank Account Reporting; they are still required to inform the foreign bank as to their US status (aka U.S. Status does not automatically change for U.S. Citizens or Legal Permanent Residents no matter where they live)
Thus, even though a person may be a Hong Kong citizen, and a U.S. green card holder and maintains accounts in Hong Kong, with respect to IRS Tax Law, the Hong Kong Account is considered to be a “Foreign Account” and must be reported on an annual FBAR and FATCA Form 8938 (if the respective threshold requirements are met)
Non-Compliant Foreign Account Holders
When a person is out-of-compliance for not properly reporting their foreign accounts, the IRS has developed various programs to assist taxpayers with getting back into compliance.
These programs are collectively referred to as Offshore Voluntary Disclosure. Several of the programs may result in minimal penalties, or even full penalty waivers.
Golding & Golding: About Our International Tax Law Firm
Golding & Golding specializes exclusively in international tax, and specifically IRS offshore disclosure.
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe. Our attorneys have worked with thousands of clients on offshore disclosure matters, including FATCA & FBAR.
Each case is led by a Board-Certified Tax Law Specialist with 20 years of experience, and the entire matter (tax and legal) is handled by our team, in-house.
*Please beware of copycat tax and law firms misleading the public about their credentials and experience.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 350 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
Recent Golding & Golding Case Highlights
- We represented a client in an 8-figure disclosure that spanned 7 countries.
- We represented a high-net-worth client to facilitate a complex expatriation with offshore disclosure.
- We represented an overseas family with bringing multiple businesses & personal investments into U.S. tax and offshore compliance.
- We took over a case from a small firm that unsuccessfully submitted multiple clients to IRS Offshore Disclosure.
- We successfully completed several recent disclosures for clients with assets ranging from $50,000 – $7,000,000+.
How to Hire Experienced Offshore Counsel?
Generally, experienced attorneys in this field will have the following credentials/experience:
- Board Certified Tax Law Specialist credential
- Master’s of Tax Law (LL.M.)
- 20-years experience as a practicing attorney
- Extensive litigation, high-stakes audit and trial experience
- Dually Licensed as an EA (Enrolled Agent) or CPA
Interested in Learning More about Golding & Golding?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in FBAR and FATCA. Contact our firm today for assistance with getting compliant.