Asia Tax Forum May 9-10, 2012 – Raffles, Singapore IRS International Operations U.S. Embassy Beijing Chinchie Killfoil, Tax Attaché 1 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore A Few Details About IRS • Bureau of Department of Treasury • Collects more than $ 2.7 trillion USD in revenue yearly to fund the U.S. Government • Processes 250+ million tax returns • Spends 41 cents for every $100 collected • 98,000 employees 2 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore IRS Strategic Goals Goal 1: Improve service to make voluntary compliance easier Goal 2: Enforce the law to ensure everyone meets their obligation to pay taxes Strategic Foundation: Invest for High Performance T 2-4 3 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Services and Enforcement Deputy Commissioner 70 employees Whistleblower Office 10 employees Office of Professional Responsibility 50 employees Small Business/Self-Employed (SBSE) 28,000 employees Wage and Investment (W&I) 47,000 employees Large Business and International (LB&I) 7,800 employees Tax Exempt and Government Entities (TEGE) 2,300 employees Criminal Investigation (CI) 4,000 employees 88,000 employees 4 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore IRS Commissioner LB&I International Function Commissioner Large Business & International IRS Deputy Commissioner for Services & Enforcement EOI Program Treaty Unit JITSIC Deputy Commissioner (International) Foreign Posts Assistant Deputy Commissioner (Int’l) Director, International Business Compliance (IBC) International Exam Function Service-wide Strategy Director, Transfer Pricing Operations APMA Program Transfer Pricing Practice Director, International Individual Compliance (IIC) International Exam Function 5 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Large Business and International LB&I • • • • • • Serves 210,000 taxpayers Businesses with $10 million + assets Large multinational companies Complex issues Serves International taxpayers (IBC & IIC) 7,800 employees (1,700 devoted to international, the rest domestic large case) • 4 overseas posts (CI has 10 overseas posts) 6 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Exchange of Info around the World JD Carroll Director JITSIC Washington DC Raul Pertierra Rev Service Rep Plantation, FL SEP 07 2011 Dean Burke EOI Program Mgr Washington DC Kelli Winegardner Tax Attaché London Chinchie Killfoil Tax Attaché Beijing Aziz Benbrahim Tax Attaché Paris Barbara Franklin Tax Attaché Frankfurt Frankfurt London Plantation, FL Paris Beijing Washington DC 7 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Regional Responsibilities… • • • • Beijing: Asia London: UK, Scandinavia, Africa Paris: Mid-East, Western & Southern Europe Frankfurt: Central & Eastern Europe, Central Asia, Mid-East • Plantation, Florida: Caribbean Islands, Central and South America 8 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore So, what is a Tax Attaché? • Competent Authority’s representative for their regional area • Manage Exchange of Information (EOI) with foreign governments • Establish and maintain relationships with Treaty Partners • Provide Service to U.S. Taxpayers abroad • Eyes and ears of IRS in foreign jurisdictions 9 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Exchange of Information It is done under • Bilateral Treaties • Tax Information Exchange Agreements (TIEA) • OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters (Multilateral Treaty) • Mutual Legal Assistance Treaties (MLAT) • Hague Evidence Convention 10 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Common information exchanged: • • • • • • • Bank, brokerage & other financial records Witness interviews Business records Public records Real estate ownership records Accountant & attorney records Insurance company records 11 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Common information exchanged… • • • • • • Tax return information Record of filing Filing status Amount of taxes paid Types, sources, and amounts of income Address of residency (residency) ANY information related to tax investigation! 12 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Types of EOI Requests • Specific – for specific taxpayers • Spontaneous –provided without request information might indicate non-compliance • Automatic – information exchanged on a routine, systemic basis • Simultaneous – both US & treaty partner examine same TP or related TP with common issues • Industry-wide – industry or sector about trends, practices, pricing, etc. 13 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Recent Developments - FATCA • Two components – Foreign Financial Institutions (FFI) Identify United States Accounts and report directly to the IRS on Form 1099-FFI – U.S. taxpayers report foreign financial asset holdings on Form 8938 starting with 2011 tax return if certain thresholds are met. 14 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Recent Developments - FATCA • Foreign Financial Institutions (FFI) Identify United States Accounts and report directly to the IRS on Form 1099-FFI • FFI to register on-line starting 1-1-2013 • FFI to report Name, Address, TIN & Account Balance (reporting starts in 2014 with respect to 2013) • Income Amounts (reporting starts in 2016) • Gross Proceeds (reporting starts in 2017) 15 Asia Tax Forum May 9-10, 2012 – Raffles, Singapore Recent Developments - FATCA • For more information please visit the FATCA Page on www.irs.gov • More FATCA information in another session later. 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