FATCA

Foreign Account Tax Compliance Act (FATCA) was implemented in the year 2010 March. This targets tax non-compliance by U.S. taxpayers with foreign accounts.

FATCA Information for Individuals

U.S. citizens, U.S. individual residents, and a very limited number of nonresident individuals who own certain foreign financial accounts or other offshore assets must report those assets in the Form 8938. This FATCA applies if the total value is at or below $50,000 at the end of the tax year, there is no reporting requirement for the year, unless the total value was more than $75,000 at any time during the tax year. Penalties apply for failure to file accurately

FATCA Information for Business

Under FATCA, to avoid being withheld upon, foreign financial institutions (FFIs) may register with the IRS and agree to report to the IRS certain information about their U.S. accounts, including accounts of certain foreign entities with substantial U.S. owners. AForeign Financial Institution (FFI) that registers on the “FATCA Registration Website” (“Website”), upon approval, will receive a Global Intermediary Identification Number (GIIN) from the IRS, unless the FFI is treated as a Limited FFI.