In the Article, Marcelo Castro Alves Strives to Provide Some Transparency to FATCA Communication to Clarify How Bank Forms Relate to the Process
MIAMI, FL / ACCESSWIRE / November 4, 2015 / Marcelo Castro Alves, founder of Focus Investment Advisor, has just posted a new and in-depth article to his website that takes a close look at what he refers to as "FATCA and International Taxation." Marcelo also posted a Portuguese version on his site.
In the article, Marcelo tries to provide some transparency to FATCA communications, explaining how bank forms relate to processes in the front end, and implementation of the IRS on the back end.
As Marcelo notes, FATCA is a United States federal law that requires U.S. persons, which includes citizens with U.S. passports, holders of green cards, permanent residents and more, to report their financial accounts that are located out of the country. The FATCA law also requires that foreign financial institutions (FFI) report their North American customers to the IRS.
Because citizens with dual citizenship and expatriates need to learn the basics about FATCA, Marcelo decided to write an educational article that will show the complex compliance regulations in the simplest way possible.
As Marcelo explained in the new article, there are currently three basic forms that are used: the W9, W8-BEN and W8-BEN-E.
"The W9 form must be completed and submitted by an individual US taxpayer, be it an individual, a U.S. firm, a partnership or another entity," Marcelo Castro Alves wrote.
"The information that is shared is your name, address, taxpayer identification number (social security, TIN or EIN), status (individual, company, etc.), exemption if applicable, name and address from the bank."
The FFI will conduct the matching of TIN numbers and will issue the appropriate form at the end of the year, Marcelo noted.
The W8-BEN applies to people who are not residents of the United States. People need to fill it out if they are receiving payments subject to withholding on a U.S. source, if the person is the holder of a bank account in a FFI, or if the person is a sole proprietor of an entity.
"The information reported is similar to W9," Marcelo wrote, adding that the document results in a final form that is created and passed on by the banks to the IRS: Form 1042-S.
As for the W8-BEN-E, Marcelo said foreign entities must fill out this form if he receives a payment subject to withholding tax by FATCA, if he receives a payment that is subject to IRS retention rules, or if he holds an account with an FFI.
"The compliance with the FATCA rules through its forms is substantially complex," Marcelo concluded in his article.
"Taxpayers who face these issues should consult with an accountant professional or an experienced tax lawyer to ensure that all items are filled in correctly for your specific case."
About Marcelo Castro Alves:
Marcelo Castro Alves founded Focus Investment Advisor in 2011. Prior to that, Marcelo was an independent advisor for three years with another group in Miami. Before that Marcelo Castro Alves was at Private Bank sector of major banks in Miami and since 1995 in Switzerland in the Global Private Client Division, primarily managing investment portfolios for high net worth individuals, Private foundations, and small to midsize corporations. For more information, please visit http://www.marcelocastroalves.com/
Marcelo Castro Alves
SOURCE: Marcelo Castro Alves