Foreign Account Tax Compliance Act

Common card · No. 368933

The Foreign Account Tax Compliance Act (FATCA) is a 2010 U.S. federal law requiring all non-U.S. foreign financial institutions (FFIs) to search their records for customers with indicators of a connection to the U.S., including records of birth or prior residency in the U.S., and to report such assets and identities of such persons to the United States Department of the Treasury. FATCA also requires such persons to report their non-U.S. financial assets annually to the Internal Revenue Service (IRS) on form 8938, which is in addition to the older and further redundant requirement to report them annually to the Financial Crimes Enforcement Network (FinCEN) on form 114 (also known as 'FBAR'). Like U.S. income tax law, FATCA applies to U.S. residents and to U.S. citizens and green card holders residing in other countries. FATCA applies to all subjects identified as a U.S. person. All U.S. citizens are U.S. persons by default, but a non-U.S.-citizen can be eligible as a U.S. person for tax...

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