Tax and legal consequences of transferring money from Iran

Iranian OFAC Services

Zaher Fallahi, OFAC Attorney At Law, Certified Public Accountant (CPA), focuses on Office of Foreign Assets Control (OFAC) Regulations regarding Iran, U.S. International Tax, Undisclosed Offshore Accounts, Foreign Gifts, and represents OFAC and Tax clients nationwide. Toll Free 1-(877) 687-7558 telephone appointments are available for clients who cannot meet in person.

Harvard Law School

Zaher Fallahi, Attorney At Law, CPA has completed “Negotiation and Leadership”, and “Leveraging the Power of Emotions as You Negotiate” Certificate Programs at Harvard Law School.

Iranian OFAC Regulations

The Office of Foreign Assets Control (OFAC) of the U.S. Treasury administers and enforces economic sanctions against groups, individuals, and countries. The Iranian Transactions & Sanctions Regulations, Title 31 C.F.R. Part 560 (ITSR), generally prohibit the exportation, re-exportation, sale, or supply of any goods, technology, and other services, directly or indirectly, by U.S persons to Iran. A U.S, person is defined as (a) U.S. citizen, (b) U.S. green card holder or (c) U.S. businesses. Conducting transactions such as employment or conducting practice of law, medicine, engineering, consulting, software development, real estate development, construction, in Iran by U.S. persons requires OFAC Specific License, exemption or authorization by OFAC General License.

2015 Joint Comprehensive Plan of Action (JCPOA)

On July 14, 2015, the P5+1 (U.S., China, Russia, Britain, France, and Germany) and Iran reached JCPOA, to limit Iran’s nuclear program to peaceful purposes and gradually lift Iranian sanctions. On October 18, 2015, Iran and the P5+1 started preparing for implementation of JCPOA. President Obama ordered the U.S. government to take preparatory steps to guarantee the implementation of the U.S. obligations upon Iran’s compliance verification by the International Atomic Energy Agency. Several actions were taken Iran and the P5+1.

2018 U.S. Withdrawal from the JCPOA

On May 8, 2018, President Trump withdrew U.S. from JCPOA, re-imposed sanctions against Iran, and ordered OFAC to modify the ITSR accordingly. One important item favorable to our clients was expanding then existing general license to include U.S. persons to sell personal property in Iran and transfer the net proceeds to the U.S. Until then, the law authorized only the sale of real property under Title 31 C.F.R. §560.543.

Helpful Links on legal & tax consequences of transferring money from Iran:

1.     Frequently Asked OFAC Questions (FAQ) and Answers

2.     What is OFAC Voluntary Self-Disclosure?

3.     Tax Implication of Money Transfer from Iran

4.     Taxation of Persian-Americans Living in Iran