Disclose Foreign Accounts and Comply with FATCA

Captive Tax Issues | Gary Bowers | Partner | Johnson Lambert LLP

The Foreign Account Tax Compliance Act (FATCA), as Gary Bowers of Johnson Lambert explains in this video, was passed by Congress in an attempt to capture more robust data from persons/entities who have money "hiding" in offshore accounts. The government believes that there are billions of dollars hiding offshore that should be taxed in the United States. The premise behind FATCA is that as long as a person/entity discloses its offshore accounts, it is not problematic. But if these accounts are not disclosed, the fines are egregious. Mr. Bowers's advice for captive insurers is simple—be sure to be in compliance with the Act.