Alert for Non-U.S. Issuers and Their U.S. Affiliates: Consider ASAP Notice to U.S. Employees re FATCA
March 26, 2012
By Paul Hastings Professional
A new and obscure tax reporting requirement under FATCA requires that certain U.S. individual taxpayers disclose on Form 8938 to their 1040s due April 15, 2012 interests in specified foreign financial assets which include their equity holdings and awards received from non-U.S. entities. Interests in non-U.S. defined contribution plans, and distributions from non-U.S. defined benefit plans, are also potentially reportable. While failure to file penalties of up to $10,000 would fall on employees, officers, and directors who are U.S. taxpayers, it is nonetheless wise for employers to act ASAP to consider providing a simple heads-up notice to those who are at risk due to their employer-provided stock awards and employee benefits.