NEW YORK, April 25, 2011 /PRNewswire/ -- The Foreign Account Tax Compliance Act (FATCA), which goes into effect on January 1, 2013, was enacted by the U.S. government to minimize the estimated $345 billion of uncollected annual tax revenue stemming from tax evasion of U.S. customers with non-U.S. entities. It requires that foreign financial institutions reach an agreement with the IRS and identify and report U.S. accounts or subject these accounts or the foreign entities to a thirty percent withholding tax.
WeiserMazars LLP, a leading international accounting, tax and advisory services organization, is encouraging financial institutions to take the necessary steps and seek out professional assistance in response to the IRS' second Notice on the FATCA, which provides detailed guidance on various reporting requirements, especially in the Private Banking arena. The firm's experienced multidisciplinary U.S. FATCA task force, led by Stephen Brecher and Mark Farber recommends that financial institutions including banks, insurance companies, hedge funds and broker dealers, among others avoid the pitfalls of significant non-compliance exposure by commencing their compliance approach now and seeking out experts offering extensive compliance solutions and advisory services to complement their internal teams.
"There is great uncertainty and a lack of understanding surrounding this issue," said Stephen Brecher, leader of WeiserMazars U.S. tax practice with more than 40 years of experience. "There is substantial due diligence required to comply with FATCA in a relatively short period of time. Our task force is structured to help institutions comply."
The WeiserMazars LLP FATCA task force offers multiple solutions, including a diagnostic toolkit to assist foreign institutions in evaluating potential tax exposure. The task force provides project management services ensuring a timely implementation and launch of an effective FATCA compliance program. FATCA requires companies to segment and analyze their client base, obtain additional documentation from their clients, withhold taxes for clients who do not want to disclose their identity and report and disclose information to the IRS with respect to U.S. accounts.
"Our task force is designed to create awareness, enhance reporting capabilities and implement tax withholding processes," said Mark Farber, Tax Partner at WeiserMazars LLP. "FATCA is not something to be ignored and the impact can be significant if not properly handled."
WeiserMazars LLP, the independent U.S. member firm of Mazars Group, provides a unique combination of foresight, experience, and know-how to our clients in fulfilling their accounting, tax and advisory needs. Our team of partners and professionals bring their technical expertise, industry knowledge and an integrated, customized approach to bear on the critical issues and competitive challenges facing a wide array of clients including owner-managed businesses, complex, multi-national organizations and high net worth individuals in a multitude of industries.
Built on a framework of tradition since 1921, WeiserMazars is dedicated to turning the science of business into an art, and turning that art into a broad range of services that will meet each of our client's specific needs. Whether on the local level or internationally, we have helped guide clients through their day-to-day operations and work with them to help ensure they have the right financial structure in place to meet their business goals.
WeiserMazars has over 90 partners and more than 650 professionals in seven U.S. offices with additional locations in Israel and the Cayman Islands.
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Mazars is a prominent international accounting, audit, tax and advisory services organization. With more than 13,000 professionals located around the world, Mazars offers accounting, audit, tax and advisory services in more than sixty countries on six continents.
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SOURCE WeiserMazars LLP