![]() taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return. Taxpayers Holding Foreign Financial AssetsįATCA requires certain U.S. citizens who reside in the country where it is organized. In order to qualify for this favorable treatment, however, the local foreign financial institution cannot discriminate by declining to open or maintain accounts for U.S. account holders of certain financial institutions that do not solicit business outside their country of organization and that mainly service account holders resident within it. FATCA provides special (and lessened) reporting requirements about the U.S. Therefore, if you set up a new account with a foreign financial institution, it may ask you for information about your citizenship. Some non-financial foreign entities will also have to report certain of their U.S. The reporting institutions will include not only banks, but also other financial institutions, such as investment entities, brokers, and certain insurance companies. taxpayers hold a substantial ownership interest. taxpayers or by foreign entities in which U.S. This FATCA requirement is in addition to the long-standing requirement to report foreign financial accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) (formerly TD F 90-22.1).įATCA will also require certain foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. There are serious penalties for not reporting these financial assets (as described below). taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. For current and more in-depth information, please visit FATCA. The Treasury Department and the IRS continue to develop guidance concerning FATCA. persons holding accounts and other financial assets offshore. The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. ![]() Reminder: You may have to report information about foreign financial assets and accounts. ![]()
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