Effective January 1, 2013 Mexican Will Exchange Gringo Financial Information with the US

The United States has entered into its second  bilateral exchange of financial and tax information agreements regarding the implementation of FATCA with  Mexico.  This new agreementd targets non-compliant U.S. taxpayers owning foreign accounts.The agreement will be  become  on January 1, 2013.
The reciprocal nature of the United States' agreement with  Mexico will allow the countries to use the automatic exchange of information to discover non-compliant taxpayers. The good old days of "what happens in Mexico, stays in Mexico" are almost gone. Because the Mexican Hacienda expects to use this agreement to collect taxes from Mexicans hiding their US financial activities in the US from the Mexican tax authorities, both Mexico and the US will benefit.

Now is the time to start reporting to the IRS all of your previously unreported Mexican business and financial activities before this new program is geared up.  If later the IRS discovers you have unreported income or assets in Mexico, and you have not been filing the proper reporting forms with your tax return, it most certainly will impose high monetary penalties and will most likely also seek criminal penalties. The average prison sentence for tax evasion usually runs 3-4 years.  

We can help you catch up. Email us at ddnelson@gmail.com or visit our website at www.TaxMeLess.com  

 

Mexico and US Sign Agreement to Exchange Banking and Financial Information Between Their Governments

On November 19, 2012, in Washington, the Mexican Undersecretary of Revenue, José Antonio González Anaya, and the United States Assistant Secretary for Tax Policy, Mark J. Mazur, signed a government-to-government agreement for the bilateral implementation of the Foreign Account Tax Compliance Act (FATCA).

FATCA was enacted by Congress in March 2010 and is intended to ensure that the US tax authorities obtain information on financial accounts held by US taxpayers with foreign financial institutions (FFIs). Failure by an FFI to disclose information would result in a requirement to withhold 30% tax on US-source income.

Once this goes into effect do not expect to keep your activities in Mexico secret from the US Government or the IRS. Best to surface now with the IRS  before your secret Mexican business, financial and investment activities are discovered through this program when the IRS will not be lenient and will most likely impose both criminal and high civil penalties for failure to properly report.