Under the Organisation for Economic Cooperation and Development (OECD) agreement, governments of 42 countries will share information on taxpayers’ bank accounts with foreign tax authorities.
Most Americans are already subject to Foreign Bank Accounts Reporting rules and are now facing FATCA – the unilateral arrangements entered into between the USA’s IRS and soon South Africa’s SARS.
The IRS’s Offshore Voluntary Disclosure Initiative (OVDI) makes provision for permanent US residents, including green card holders, to come clean.
How can we help South Africans living in the USA to help themselves?
1. To start we’ll see to it that your SARS records and information on South African based income are up to date.
2. We’ll assist in collating the relevant schedules and information required for FBAR and/or IRS reporting on foreign assets and income.
These schedules and information will make you ‘FATCA enquiry ready.’
Be aware – SARS is obliged to collectively report on behalf of South African financial institutions, which means the IRS via SARS will have knowledge of your investment income.
3. Instead of reporting ongoing, small-amount annuities we propose considering your surrender options with the view to transferring the full value to your US bank account. Cashing out the hassle so to speak.
It is acronyms such as FATCA (Foreign Account Tax Compliant Act), OECD, OVDI and many more which makes the world a smaller place.
If you need help to stay on the right side of the IRS let us call you.