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Start →FATCA https://americansabroad.org/issues/fatca/ Share on facebook Share on twitter Share on email Share on print More Sharing Services The Foreign Account Tax Compliance Act, better known as FATCA, was passed in 2010 as part of the HIRE act. Starting July 1, 2014 Foreign Financial Institutions (FFI) are required by the US government, under FATCA, to report information regarding accounts of all US citizens (living in the US and abroad), US "persons," green card holders and individuals holding certain US investments to the IRS. FATCA requires foreign financial institutions such as local banks, stock brokers, hedge funds, insurance companies, trusts, etc. to report accounts of US persons directly to the United States, or to the government of the bank’s country for further transmission to the US through Intergovernmental Agreements (IGAs) or be subject to a 30% withholding on their US investments. FATCA also requires US citizens who have foreign financial assets in excess of $50,000 (higher for bona fide residents overseas – $200,000 for single filers and $400,000 for joint filers – see the IRS website for more details) to report those assets every year on a new Form 8938 to be filed with the 1040 tax return. Instructions for form 8938 were published in December 2011 and can be found on the IRS website. Many Americans residing overseas are reporting banking lock-out. Many foreign financial institutions have chosen to eliminate their US citizens and US person client basis in order to minimize their exposure to FATCA reporting requirements, withholding fees and potential penalties. ACA, Inc. advocates a Same Country Exemption to alleviate the problem of “lock-out” whereby some Foreign Financial Institutions (FFIs) refuse to do business with Americans because of FATCA reporting. Same Country Exemption would exclude the reporting of accounts owned by Americans abroad where the account is with a Foreign Financial Institution in the same country where the individual is a resident. This would alleviate the filing burden for FATCA on Americans as well as the identification and disclosure of these accounts by the Foreign Financial Institution To learn more about FATCA and how it might impact you, you can consult the IRS website or speak to your tax advisor for more information. (Updated September 2014) FURTHER INFORMATION FATCA Position Papers - These documents outline ACA's position and recommendations on FATCA. Caucus members support FATCA "Same Country Exemption" (June 2015) ACA's position on FATCA (May 2015) "Same Country Exemption" (Octobre 2013) Why FATCA is Bad for America (August 2014) Communications - Here you can read more about the communications we or our supporters have issued on FATCA. Treasury Department Responds to Concerns of Americans Abroad (July 2014) Four Senators Object to FATCA (July 2012) Washington Think Tank Questions the Effectiveness of FATCA (July 2011) Same Country Exemption for FATCA (Octobre 2013) Current Regulations/General Information ACA meets with Congressional and key tax offices (March 2015) Serious Tax Issues Facing Americans Living Abroad (June 2011) Registration of FFIs Under FATCA (July 2014) Comparison of FATCA and FBAR Rules (July 2014) Press/ Media ACA and FATCA in the Press Bloggers on FATCA Last Updated July 7, 2015 ← End
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