Daily Tax Update - July 1, 2014: Additional Jurisdictions Sign FATCA Agreements

ADDITIONAL JURISDICTIONS SIGN FATCA AGREEMENTS:  The Treasury Department announced that the British Virgin Islands has signed an intergovernmental agreement with the U.S. under the Foreign Account Tax Compliance Act (“FATCA”).  Nine other jurisdictions, including Bahrain, Cabo Verde, Haiti, Malaysia, Montenegro, Serbia, Iraq, Nicaragua and San Marino, have negotiated FATCA accords in substance.

Treasury also updated the list of foreign financial institutions (FFI’s) that have registered to share information on their U.S. account holders under FATCA.

Treasury's list of jurisdictions can be accessed via: http://www.treasury.gov/resource-center/tax-policy/treaties/pages/fatca-archive.aspx.

Revenue Procedure 2014-40 sets forth procedures for applying for and for issuing determination letters on the exempt status under § 501(c)(3) of the Internal Revenue Code (Code) using Form 1023-EZ, Streamlined Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. This revenue procedure is generally available for certain U.S. organizations with assets of $250,000 or less and annual gross receipts of $50,000 or less.

Revenue Procedure 2014-42 provides guidance regarding a new, voluntary Annual Filing Season Program designed to encourage tax return preparers who are not attorneys, certified public accountants (CPAs), or enrolled agents (EAs) to complete continuing education courses for the purpose of increasing their knowledge of the law relevant to federal tax returns.  In addition, this revenue procedure modifies and supersedes Revenue Procedure 81-38, 1981-2 C.B. 592, regarding limited practice before the IRS by individuals who are not attorneys, CPAs, or EAs.