There’s no hiding from Uncle Sam
(CNS Business): Even if you’re living in the Cayman Islands, the US tax authorities can come knocking on your door if you are not in compliance with the Foreign Account Tax Compliance Act (FATCA), US taxpayers residing in the Cayman Islands learned at a free seminar on Wednesday at the Caribbean Club. The free informational meeting, called “Navigating US Tax Requirements and Strategic Methods of Coming into Compliance”, explained the most recent US tax filing and reporting requirements under FATCA, as well as how to report earnings to the IRS.
Caplin & Drysdale, Chartered, a leading DC-based law firm in the tax controversy area, and Ham, Langston & Brezina LLP, a Texas-based multi-service accounting firm, hosted the event.
Speakers addressed Cayman-based US non-residents with the questions they had on their filing options. Attendees also learned the practical and effective methods for coming into compliance through various IRS voluntary disclosure programs, including the Streamlined Filing Compliance Program for non-US residents.
“Cayman signed an intergovernmental agreement, IGA, with the United States agreeing to cooperate with FATCA and that information sharing will begin this year and the information will be received by the US and people should take action now to come into compliance,” said Caplin & Drysdale attorney, Dianne Mehany.
“It’s becoming harder and harder to hide and you really want to be ahead of the situation. You don’t want the IRS knocking on your door. There are options for you to come forward and come into compliance now before they come to you because once they come to you, it’s a very different conversation,” added Caplin & Drysdale attorney, Zhanna Ziering.
Both attorneys explained they are not trying to scare anyone, but want them to understand there are criminal and civil penalties if you don’t come into compliance.
“Right now the message I deliver is FATCA is changing all of that and just because you’ve had an account here for 20 or 30 years without issues doesn’t mean you won’t get a letter in the mail. We’ve had clients in Cayman, as well as a host of other countries, receiving these letters,” stated. Mehany.
Ziering said that US citizens residing in the Cayman Islands, even those who do not need to come into compliance, still have to file taxes.
“Any income you earn in Cayman, even though you’re not living in the United States, is still subject to US tax,” she explained.
