The Hiring Incentives to Restore Employment (HIRE) Act imposes new reporting requirements on a U.S. individual whose ownership interests in specified foreign financial assets exceed $50,000.
Of particular importance is the fact that this applies to all US individuals, regardless of their residency and is effective for taxable years beginning after March 18, 2010; thus, for calendar-year taxpayers, 2011 is the first year for which the new rules are in effect.
On December 19, the IRS published temporary regulations implementing the new reporting requirements. These rules are in addition to the longstanding foreign bank account (FBAR) reporting requirements, which also apply to some of the same foreign assets, and taxpayers who comply with the new rules will not be excused from filing FBARs for the same assets.
All individuals that may be affected by these new rules should consult their tax adviser to determine the requirements that they must meet in order to comply. A taxpayer who fails to comply may be subject to a $10,000 penalty unless reasonable cause exists for the failure.
About the Author
Mr. Levi graduated in 1970 from McGill University and obtained his CA designation one year later. In 1975 Mr. Levi was admitted to partnership at his former firm where he remained until 2004 when he joined Morton Katz, MBA, FCA to form Levi Katz, LLP —a full service accounting firm with emphasis in forensic auditing and litigation support. In 1991 Mr. Levi was recognized by the Ordre des Comptables Agréés du Québec for his achievements and service to the profession and the community by conferring upon him the title fellow of the Ordre and in 2002, Mr. Levi was elected to the Board of Directors of the Quebec Order of Chartered Accountants and to its executive committee in 2003.
In 1992 he was named a Certified Fraud Examiner by the Association of Certified Fraud Examiners and became founding president of the Association's Montreal Chapter in 1994. He was re-elected as president in 1995 and selected as the recipient of the Distinguished Achievement Award of the Association of Certified Fraud Examiners in 1996. In 1997 Mr. Levi was elected to the Board of Regents of The Association and was selected by the Regents to be Vice-Chairman of the Board.
In 1996 Mr. Levi successfully completed the CPA examination and is licensed as a Certified Public Accountant in Florida and North Carolina.
