President Obama orders steps towards lifting Iran sanctions. Europeans start cancelling Iran sanctions.
Today, Sunday, October 18, 2015, President Obama ordered the US government to take steps towards implementation of lifting US sanctions against Iran, in conformity with the “Iran Nuclear Deal” reached, between Iran and the six world major powers (US, China, United Kingdom, Franc, Russia and Germany), after two years of serious negotiations, on July 14, 2015, in Vienna, Austria.
Under the deal, Iran will drastically reduce its uranium enrichment program, surrender or dilute most of its highly enriched nuclear fuel and open its nuclear facilities for inspection by the International Atomic Energy Agency (IAEA), the United Nations (UN) nuclear watchdog. In return, the US, Europe and other countries will start lifting certain economic sanctions imposed on Iran by the US, UN, Europeans and other countries (secondary sanctions).
Obama’s order comes, as set out in the deal (Implementation Day) 90 days after the United Nations Security Council endorsed the accord (Adoption Day). In a memorandum addressing his secretaries of State, Treasury, Commerce and Energy, Obama sated:
“I hereby direct you to take all necessary steps to give effect to the US commitments with respect to sanctions,”.
The European Union’s foreign policy chief Federica Mogherini and Iranian Foreign Minister Dr. Javad Zarif also made statements on the cancellation of sanctions on Iran. The Iranian authorities have indicated that they hope “implementation day” will come quickly, in less than two months (some believe in Azar, the third month of the autumn, in Persian calendar) but the US authorities are skeptical and envision much longer timetable.
Tax Implication of the Post Sanctions; the “Iran Nuclear Deal”. Congress’s concern about foreign tax credit regarding Iran
In his September 22nd, 2015, letter to the Obama administration, The House Ways and Means Committee Chair Paul Ryan, Republican of Wisconsin, requested the administration to disclose whether, as part of its “nuclear deal with Iran”, referring to the July 14, 2015 agreement by Iran and P 5+1 (US, China, Russia, Britain, France + Germany) also known as” Joint Comprehensive Plan of Action (JCPOA)”, it intends to waive the punitive measures imposed by Internal revenue Code Section 901 (j) regarding taxes paid on income earned in Iran by US businesses and individuals under the US tax law. See Foreign Tax Credit and related tax law below. For more information, click here. http://zflegal.wpengine.com/tax-implication-of-the-post-sanctions-relief-the-iran-nuclear-deal-congress-concern-about-foreign-tax-credit-regarding-iran/
Important. The above issue is only one international tax matter concerning Iran. There are numerous other US international tax laws that may apply to the US taxpayers dealing with or living in Iran. Although, it is unclear clear as to when Iranian banks may comply with the US international tax laws such as FATCA, http://zflegal.wpengine.com/services/foreign-account-tax-compliance-act-fatca-irs-form-8938/ it would be a huge problem for the Persian-Americans who have undeclared bank accounts in Iran. For additional information, click http://www.zfcpa.com/blog/ustaxfilingrequirementsforpersian-americanslivinginiran
For information on the Office of Foreign Assets Control (OFAC) with respect to Iran, click http://zflegal.wpengine.com/services/the-us-treasury-office-of-foreign-assets-control-ofac/
Zaher Fallahi, Tax Attorney, CPA, advises US taxpayers, with their IRS audit, IRS Offshore Voluntary Disclosure Program (OVDP), Streamlined Filing Compliance Procedures, Report of Foreign Bank and Financial Accounts (FBAR), Foreign Account Tax Compliance Act (FATCA), Foreign Trust and Offer-in-Compromise. In September 2015, Zaher Fallahi was named a top attorney http://www.ocbar.org/AllNews/NewsView/tabid/66/ArticleId/1631/Coast-Magazine-Names-OCBA-Members-Top-Attorneys.aspx Out of approximately 1,300,000 US lawyers, about 2% are also CPAs, and we are one of them. Telephones: (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), e-mail [email protected]