U.S. accounting firms are not prohibited by a White House executive order regarding sanctions against Russia from providing tax advisory and preparation services to the U.S. subsidiary of a Russian company in certain scenarios, according to guidance issued Thursday, June 9, by Treasury's Office of Foreign Assets Control (OFAC).
On May 8, the U.S. announced expanded sanctions against Russia in response to the war in Ukraine. Those sanctions prohibited "U.S. persons from providing accounting, trust and corporate formation, and management consulting services to any person in the Russian Federation," according to a White House statement.
Practitioners had questions about the sanctions applying to various types of services, including tax-related services. The OFAC updated its FAQ to clarify the sanctions, describing several scenarios in which services to a non-Russian subsidiary of a Russian person are not prohibited. Learn more.
Tax professionals can also consult the AICPA’s Ukraine-Russia War Resource Center for more resources and updates.