Taiwan Stamp Seal (Chop), Parents & IRS Offshore Reporting
The IRS has very onerous reporting and tax rules when it involves foreign assets, accounts, investments and/or income. In several Asian countries such as Taiwan, it is common for an individual to have a signature stamp or seal. The stamps are used in lieu of an individual having to be physically-present to sign a document
- 1 Taiwan Stamp Seal (Chop) & U.S. Tax
- 2 Example of Taiwan Stamp Seal & U.S. Tax
- 3 Taiwan and U.S. Tax Lawyers – Golding & Golding, Board-Certified Tax Law Specialist
- 4 Is Jeffrey in Trouble in the U.S.?
- 5 How will the U.S. know about his Foreign Money?
- 6 Interested in IRS Offshore & Foreign Reporting Amnesty?
Taiwan Stamp Seal (Chop) & U.S. Tax
While the use of the stamp document is convenient, especially for Asian parents when they have children residing outside of Taiwan — it can turn into nightmare for a Taiwanese/U.S. person who unknowingly had accounts or assets opened in his name, or income attributed to him (or her).
Example of Taiwan Stamp Seal & U.S. Tax
Here’s a very common situation we doing often: Jeffrey resides in the United States, but his parents reside in Taiwan. The parents are reaching retirement age and want to open up some bank accounts for Jeffrey, as well as placing him as a signatory on their own accounts.
Jeffrey’s father was an investment banker and he uses the new account and the signature stamp to generate significant amounts of income…in Jeffrey’s name. The Stamp is also used to transfer money in and out of the bank account — as well as to open new bank accounts.
Taiwan FBAR & FATCA Reporting
FBAR and FATCA or two the most common international reporting requirements for U.S. persons who have foreign accounts, assets and income. Unbeknownst to Jeffrey, his family has been generating significant amounts of income under Jeffrey’s name.
While Jeffrey has not technically signed any documents, his signature card has been used hundreds of times, for various transactions over the past 10 years.
Since the accounts, assets, investments, and income have not been reported to the IRS, Jeffrey is out of compliance and could face significant fines and penalties — unless he resolves the issue.
Taiwan and U.S. Tax Lawyers – Golding & Golding, Board-Certified Tax Law Specialist
Golding & Golding represents clients worldwide in over 70-countries exclusively in Streamlined, Offshore and IRS Voluntary Disclosure matters. We have successfully completed more than 1,000 streamlined and voluntary disclosure submissions.
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We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.
Is Jeffrey in Trouble in the U.S.?
Generally, if Jeffrey can get himself into compliance before he is contacted by the U.S. government, Jeffrey may be able to significantly reduce, minimize, and/or eliminate any US penalties.
How will the U.S. know about his Foreign Money?
Generally, one of the main ways the US government obtains information about foreign money is through FATCA.
FATCA is the Foreign Account Tax Compliance Act.
Currently, there are more than 110 countries and over 300,000 foreign financial institutions that have agreed to report U.S. Account Holder information in accordance with FATCA.
Even though the United States and Taiwan do not have tax treaty, they have entered into a FATCA Agreement.
Interested in IRS Offshore & Foreign Reporting Amnesty?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in IRS Offshore/Foreign amnesty procedures. Contact our firm today for assistance with getting compliant.