U.S. Signs Agreement with Costa Rica to Fight Offshore Tax Evasion
The Department of the Treasury has announced that the United States has signed an intergovernmental agreement (IGA) with the government of Costa Rica to implement the Foreign Account Tax Compliance Act (FATCA) to help fight offshore tax evasion.
The agreement with Costa Rica is a Model 1A, meaning that the taxing authorities in Costa Rica will be required to report tax information about U.S. account holders to the Department of Treasury. The Department of Treasury will be required to report information to the taxing authorities in Costa Rica for accounts that are in the U.S. which are owned by Costa Rican individuals.
If you have financial accounts offshore, it is imperative that you comply with the reporting requirements as the penalties associated with non-compliance are significant.
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Kimberlee Phelan, CPA, MBA
Practice Leader, International Services Group
609.520.1188
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To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
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