Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 1 IRS International Operations U.S. Embassy Beijing Chinchie Killfoil, Tax Attaché

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 2 A Few Details About IRS Bureau of Department of Treasury Collects more than $ 2.7 trillion USD in revenue yearly to fund the U.S. Government Processes 250+ million tax returns Spends 41 cents for every $100 collected 98,000 employees

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 3 IRS Strategic Goals T 2-4 Goal 1: Improve service to make voluntary compliance easier Goal 2: Enforce the law to ensure everyone meets their obligation to pay taxes Strategic Foundation: Invest for High Performance

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 4 Services and Enforcement Deputy Commissioner 70 employees Small Business/Self- Employed (SBSE) 28,000 employees Wage and Investment (W&I) 47,000 employees Large Business and International (LB&I) 7,800 employees Tax Exempt and Government Entities (TEGE) 2,300 employees Criminal Investigation (CI) 4,000 employees Office of Professional Responsibility 50 employees Whistleblower Office 10 employees 88,000 employees

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 5 LB&I International Function Director, International Business Compliance (IBC) Director, Transfer Pricing Operations Commissioner Large Business & International Director, International Individual Compliance (IIC) Deputy Commissioner (International) Assistant Deputy Commissioner (Int’l) IRS Commissioner Treaty Unit IRS Deputy Commissioner for Services & Enforcement Foreign Posts Service-wide Strategy JITSIC EOI Program APMA Program Transfer Pricing Practice International Exam Function

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 6 Large Business and International LB&I Serves 210,000 taxpayers Businesses with $10 million + assets Large multinational companies Complex issues Serves International taxpayers (IBC & IIC) 7,800 employees (1,700 devoted to international, the rest domestic large case) 4 overseas posts (CI has 10 overseas posts)

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 7 Exchange of Info around the World Dean Burke EOI Program Mgr Washington DC Dean Burke EOI Program Mgr Washington DC Raul Pertierra Rev Service Rep Plantation, FL Raul Pertierra Rev Service Rep Plantation, FL Kelli Winegardner Tax Attaché London Kelli Winegardner Tax Attaché London Aziz Benbrahim Tax Attaché Paris Barbara Franklin Tax Attaché Frankfurt Chinchie Killfoil Tax Attaché Beijing JD Carroll Director JITSIC Washington DC SEP Frankfurt London Plantation, FL Paris Beijing Washington DC

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 8 Regional Responsibilities… Beijing: Asia London: UK, Scandinavia, Africa Paris: Mid-East, Western & Southern Europe Frankfurt: Central & Eastern Europe, Central Asia, Mid-East Plantation, Florida: Caribbean Islands, Central and South America

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 9 So, what is a Tax Attaché? Competent Authority’s representative for their regional area Manage Exchange of Information (EOI) with foreign governments Establish and maintain relationships with Treaty Partners Provide Service to U.S. Taxpayers abroad Eyes and ears of IRS in foreign jurisdictions

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 10 Exchange of Information It is done under - Bilateral Treaties Tax Information Exchange Agreements (TIEA) OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters (Multilateral Treaty) Mutual Legal Assistance Treaties (MLAT) Hague Evidence Convention

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 11 Common information exchanged: Bank, brokerage & other financial records Witness interviews Business records Public records Real estate ownership records Accountant & attorney records Insurance company records

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 12 Common information exchanged… Tax return information Record of filing Filing status Amount of taxes paid Types, sources, and amounts of income Address of residency (residency) ANY information related to tax investigation!

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 13 Types of EOI Requests Specific – for specific taxpayers Spontaneous –provided without request - information might indicate non-compliance Automatic – information exchanged on a routine, systemic basis Simultaneous – both US & treaty partner examine same TP or related TP with common issues Industry-wide – industry or sector about trends, practices, pricing, etc.

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 14 Recent Developments - FATCA Two components – Foreign Financial Institutions (FFI) Identify United States Accounts and report directly to the IRS on Form 1099-FFI – U.S. taxpayers report foreign financial asset holdings on Form 8938 starting with 2011 tax return if certain thresholds are met.

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 15 Recent Developments - FATCA Foreign Financial Institutions (FFI) Identify United States Accounts and report directly to the IRS on Form 1099-FFI FFI to register on-line starting FFI to report Name, Address, TIN & Account Balance (reporting starts in 2014 with respect to 2013) Income Amounts (reporting starts in 2016) Gross Proceeds (reporting starts in 2017)

Asia Tax Forum May 9-10, 2012 – Raffles, Singapore 16 Recent Developments - FATCA For more information please visit the FATCA Page on More FATCA information in another session later. Questions?