FACTA REPORTING FELL SHORT PART TWO

May 3, 2022 - Douglas Myser

FACTA reporting fell short part two. The reason Congress wants to tighten up the FACTA reporting comes on the heels of the Pandora Papers and Panama Papers leaks, where hundreds of politicians, rich individuals, celebrities, and sports figures, were hiding billions from tax authorities all over the world, including the United States. It is estimated that Trillions are located offshore, and $2 trillion of which are in countries "known to be used by taxpayers for tax evasion purposes." FACTA reporting fell short part two.

The Forms 8938 that have been filed appear to represent only a fraction of those that should be filed, TIGTA stated. It compared Forms 8938 received with Forms 8966, FACTA Report, on which foreign financial institutions registered with the IRS and agreed to report certain information about their accounts owned by U.S. taxpayers, including the accounts of foreign entities with substantial U.S. ownership. The approximately 15 million Forms 8966 received between 2016, when reporting began, and 2019 contained 4,976,521 unique taxpayer identification numbers. During the same period, the IRS received 1.827,556 Forms 8938, leaving more than 3.1 million taxpayers who are potential non-filers.

TIGTA further compared these figures in light of the $50,000 asset reporting threshold and estimated more than 330,000 taxpayers were potentially non-filers, each of whom might have owed a penalty of up to $10,000. "The IRS could have assessed at least $3.3 billion using information that was readily available to the IRS", TIGTA concluded. Yet in the IRS's two FATCA compliance campaigns that remained after it abandoned the road map, the IRS has not assessed any Sec. 6038D(d) penalties because it "was slow to attempt to identify non-filers in one of the campaigns, titled Offshore Private Banking.

IF you have a FACTA tax, or want advice on how to come in from the shadows of hiding tax money offshore, we offer Superior Tax Professionals, and have Tax Court Services also. Our Tax Relief can be used for those who do not qualify for the IRS Fresh Start Program, as can our Tax Resolution Services. We are a 36 year old Tax Resolution Company with Tax Resolution available worldwide. Call for a Free Consultation today 1-888-689-7861