International currenies Essay Example | Topics and Well Written Essays - 500 words

International currenies - Essay Example Additional disclosure FACTAs new reporting requirements are much broader than the Report of Foreign Bank and Financial Accounts (FBAR). This means that individuals who may not have been subject to FBAR filing obligation may still be subject to the new reporting requirement. The major differences between FACTA and FBAR are: (1) FACTA has a higher asset threshold for disclosure at $50,000; (2) FACTA applies to a wider range of assets; (3) FACTA must be filed as an attachment to an individual tax return unlike FBAR which is filed independently of tax returns with the Treasury Department. In addition to that, FACTA added a new withholding system that requires foreign financial institutions with substantial US owners to disclose information regarding the US taxpayers. Increased penalties For starters, FACTA favors the IRS with a presumption that it is the obligation of the taxpayer to file her disclosure if she has specified foreign financial assets (Packman and Rivero 45). It also requ ires shareholders in a passive foreign investment company (PFIC) to file an annual information return disclosing their ownership regardless. The minimum penalty for failure to submit the required disclosure without reasonable cause is $10,000 which would increase by $10,000, for every 30-days of failure to submit the required disclosure, to a maximum of $50,000.

Financial Institutions Essay Example | Topics and Well Written Essays - 1000 words - 1

Financial Institutions - Essay Example A financial institution has a pool of experts in the fields of investment planning, estate planning, tax planning, and other financial matters at the household level. I do not believe that a busy person who hates numbers and anything about finances will want to have the burden of learning all these. Therefore, a financial institution provides an individual the expertise and perhaps the peace of mind that he will not be burdened with debt once he religiously follows a financial plan. Financial institutions also act as intermediaries for individuals, governments, and businesses, but they treat each customer differently according to the category which one belongs. For individuals, as hinted earlier, they provide financial information where the individual is more likely uninformed. For governments and businesses, they treat them almost the same as institutions but depending on their credit rating. I believe individuals without a finance background have other subjects, interests, or callings. Or perhaps, they are afraid of anything related to money. Nevertheless, financial information is necessary. Therefore, financial institutions bridge that gap of ignorance by providing financial education and information to the public. For the most part, financial institutions deal with businesses as brokers for debts and other sources of money. Of course, this is different for individuals. An ordinary citizen needs financial information in order to live below his means. Businesses need capital and financial information necessary for huge investments.