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We previously posted DoJ Launches CriminalInvestigation of Hundreds of US Taxpayers Named in Panama PapersLeak! where we discussed that the offshore planning world was set on fire with the news that 11 million documents were leaked from the Panamanian law firm Mossack Fonseca. 

They allegedly show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax and now The Guardian reports that U.S. Attorney Preet Bharara has “led several crusades against criminal wrongdoing in the financial sector, is already investigating several of the more than 200 US citizens named in the papers.”

This raises the question of whether U.S. government investigators are able to make use of these "Privileged Materials" that appear to have been hacked from Mossack Fonseca, an overseas law firm?

 

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Marini& Associates, P.A.  

 

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at: www.TaxAid.us or www.TaxLaw.ms or

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On December 17, 2014 we posted How to Complete Form W-8 BEN E & and W-8IMY? where we discussed how to fill out the various Form W–8's, which now has increased to 8 pages in some cases.

This post provided foreign entities a set of step-by-step instructions to complete the new Forms W-8BEN-E and W-8IMY, as well as a general overview of the obligations imposed on foreign financial institutions under the new chapter 4 FATCA regime including:

1. Determine which form is appropriate for the foreign recipient to complete
2. Determine whether the foreign entity is a foreign financial institution (FFI) or a non-financial foreign entity (NFFE)
3. A foreign entity that meets the definition of a foreign financial institution (FFI) should identify whether an Intergovernmental Agreement (IGA) applies, as well as its requirements under the applicable IGA. and
4. Any other foreign entity that is not an FFI should determine its specific Chapter 4 non-financial foreign entity (NFFE) status and document that NFFE status on Form W-8BEN-E or W-8IMY.

Now the IRS has issued new versions of Form W-8BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting, and the instructions to that form. The revised form reflects changes made in regulations and other pronouncements. that were issued since the publication of the previous version of the form, as well as changes to more effectively enforce already-existing withholding and reporting rules.

The updates contain several changes to the form itself, some changed instructions, and many instances of added detail to existing instructions. Included among the form changes are:

1. New chapter 4 status box for accounts that are not financial accounts.
2. A new checkbox has been added to the chapter 4 statuses in Part I, line 5, for payments made to payees for accounts they hold that are not financial accounts.
3. Increased information required regarding LOBs for beneficial owners making treaty claims.
4. Reporting by sponsored FFIs.
5. Form W-8BEN-E, Part IV, which previously had been entitled “Sponsored FFI That Has Not Obtained a GIIN” is now entitled “Sponsored FFI.” IRS is now requiring disclosures by sponsored FFIs, regardless of whether the FFI has obtained a GIIN and, 
6. A new line has been added that requests the GIIN of the sponsoring entity and
7. Increased compliance requirements for nonreporting IGA FFIs.