FATCA Policy
This FATCA Policy relates to Foreign Account Tax Compliance Act (FATCA) and the compliances that need to be complied with in order to use this website having URL: www.vepapu.com. This FATCA Policy is an extension of the Terms and Conditions and General Disclaimer. However, this FATCA Policy shall be amended and/or modified depending upon the change(s) being made in FATCA legislations and the user is hereby directed to regularly check the FATCA Policy.
1. WHAT IS FATCA?
1.1. The Foreign Account Tax Compliance Act (FATCA) is a law that requires U.S. citizens living at home or abroad to file annual reports on any foreign account holdings they have. The main goal of FATCA is to stop tax evasion.
1.2. The FATCA was passed in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, which is designed to promote transparency in the global financial services sector. Form 8938 is used to report any foreign account holdings and there are serious penalties for not reporting them.
2. PURPOSE
2.1. Although the primary goal is to prevent and identify tax evasion by US citizens, FATCA will have a substantial influence across financial systems, affecting Non-US corporations and persons. FATCA requires all foreign financial institutions ("FFIs") to register with the IRS, conduct due diligence to identify U.S. accounts, and disclose customer data to the IRS directly or through an Intergovernmental Agreement ("IGA") with their local government. Failure to comply will result in a 30% withholding tax on all U.S.-sourced revenue or payments remitted to them by U.S. paying agents or other FFIs.
3. PENALTIES FOR NON-COMPLIANCE
3.1. There are penalties for failing to file Form 8938. The IRS can impose a $10,000 failure to file penalty, an additional penalty of up to $50,000 if the guilty party continues to not file after notification by the IRS, and a 40% penalty for understating taxes attributable to non-disclosed assets.
3.2. The statute of limitations is extended to six years after an entity files its return for income over $5,000 that is not reported and is attributable to a specified foreign financial asset. Also, if a party fails to file or properly report an asset on Form 8938, the statute of limitations for the tax year is extended to three years beyond the time when the party provides the required information.
3.3. If there is a reasonable cause for the failure, the statute of limitations is extended only with regard to the item or items related to such failure and not for the entire tax return.
3.4. No penalty is imposed if the failure to disclose is found to be reasonable, although this is decided on a case-by-case basis.
4. CONTACT US
4.1. If you have any questions and/or suggestions relating to this FATCA Policy, please contact us at our support email: hello@vepapu.com.
1. WHAT IS FATCA?
1.1. The Foreign Account Tax Compliance Act (FATCA) is a law that requires U.S. citizens living at home or abroad to file annual reports on any foreign account holdings they have. The main goal of FATCA is to stop tax evasion.
1.2. The FATCA was passed in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, which is designed to promote transparency in the global financial services sector. Form 8938 is used to report any foreign account holdings and there are serious penalties for not reporting them.
2. PURPOSE
2.1. Although the primary goal is to prevent and identify tax evasion by US citizens, FATCA will have a substantial influence across financial systems, affecting Non-US corporations and persons. FATCA requires all foreign financial institutions ("FFIs") to register with the IRS, conduct due diligence to identify U.S. accounts, and disclose customer data to the IRS directly or through an Intergovernmental Agreement ("IGA") with their local government. Failure to comply will result in a 30% withholding tax on all U.S.-sourced revenue or payments remitted to them by U.S. paying agents or other FFIs.
3. PENALTIES FOR NON-COMPLIANCE
3.1. There are penalties for failing to file Form 8938. The IRS can impose a $10,000 failure to file penalty, an additional penalty of up to $50,000 if the guilty party continues to not file after notification by the IRS, and a 40% penalty for understating taxes attributable to non-disclosed assets.
3.2. The statute of limitations is extended to six years after an entity files its return for income over $5,000 that is not reported and is attributable to a specified foreign financial asset. Also, if a party fails to file or properly report an asset on Form 8938, the statute of limitations for the tax year is extended to three years beyond the time when the party provides the required information.
3.3. If there is a reasonable cause for the failure, the statute of limitations is extended only with regard to the item or items related to such failure and not for the entire tax return.
3.4. No penalty is imposed if the failure to disclose is found to be reasonable, although this is decided on a case-by-case basis.
4. CONTACT US
4.1. If you have any questions and/or suggestions relating to this FATCA Policy, please contact us at our support email: hello@vepapu.com.
