OFAC Releases New Guidance on International Sanctions Compliance

Many U.S. nonprofits provide vitally needed humanitarian assistance internationally, particularly against the backdrop of pressing medical needs, refugee crises in war-affected countries, and extensive poverty.  In connection with any foreign grantmaking, foreign payments, or other overseas operations, nonprofits need to be mindful of their obligations to comply with United States sanctions programs, which are often more extensive and applicable than many nonprofit organizations understand.

Totalization Agreements: International Social Security Tax Compliance

Looking ahead to retirement, an employee who meets one country’s basic social security eligibility requirements may receive benefits from that country. For example, a U.S. citizen will become qualified for U.S. social security benefits after earning forty credits (10 years total of work). If an employee or self-employed individual works long enough to meet the basic social security requirements of the U.S. and a foreign country, the employee may receive benefits from both countries, although benefits earned may be correspondingly reduced to prevent a windfall. What happens, however, when an employee or self-employed individual does not meet the basic social security requirements of any country because his or her time has been divided between working in the U.S. and working abroad? 

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