TaxConnections

Login | TAXPAYERS JOIN HERE | TAX PROFESSIONALS JOIN HERE

Would some one explain what is FATCA? Why was it intreduced? What impact does it have on USC living abroad?

Foreign Account Tax Compliance Act,
Domestic & International Compliance
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Lisa Nason CPA, MST
FATCA stands for The Foreign Account Tax Compliance Act (FATCA) Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return. It was introduced in order to improve tax compliance involving foreign financial assets and offshore accounts. For US citizens living abroad, you woudl potentially need to report your foreign bank account or other foreign financial assets - assuming that you exceed the trheshold amounts required to file those forms.
Leave a Comment 319 weeks ago

User Photo
Question Owner
Great, thank you, now the questions are? if am a USC living in Dubai and I have a current Bank account in Dubai, why woud the IRS consider it as an offshore account? Secound any idea regarding the trheshold amount, I know to file your income tax the first $91,600 are exempt..
Reply 319 weeks ago
User Photo
Douglas Stransky
I believe my response to your original question should also answer your follow-up questions. If you would like to know more about FATCA, here's a link to the key provisions on the IRS website:
www.irs.gov/Businesses/Corporations/Summary-of-Key-FATCA-Provisions

You can also review the instructions to Form 8938 for the various thresholds for filing. Please keep in mind that FATCA reporting is in addition to any U.S. federal tax return, FBAR or other information return that you might have to file.
Reply 318 weeks ago
User Photo
Douglas Stransky
FATCA is legislation that was passed in the United States in 2010. FATCA is intended to prevent U.S. persons from evading U.S. federal income tax using financial accounts held outside of the United States. Although FATCA requires current reporting by U.S. persons, when FATCA is fully implemented, it will require non-U.S. financial institutions to enter into agreements with the IRS to report relevant information to the IRS regarding financial accounts held by identified U.S. persons. If a non-U.S. financial institution does not enter into an agreement with the IRS, the IRS will impose a 30% withholding tax on U.S. source payments (and potentially certain non-U.S. source payments no earlier than 2017) paid to the financial institution or their clients.
Leave a Comment 318 weeks ago

User Photo
Question Owner
Thank you so much, Form 8938 was very helpful.. Answered many questions for me and my clients.
Regards
Reply 318 weeks ago
User Photo
Chuck Heyde, CPA, CGMA
We actually did a huge write up on this.

www.gemms.us/foreign-financial-assets

We call it "Everything you wanted to know about FATCA but didn't know to ask..."

Please enjoy...
Leave a Comment 316 weeks ago

Meet Leading Tax Advisors

User Photo Peter J. Scalise

Federal Tax Credits & Incentives Practice Leader

New York, NY

User Photo John L Stancil

Tax Advisor/CEO

Lakeland, FL

User Photo John R Dundon, II EA

Tax Director

Denver, CO

User Photo Kevin Johnson MS, JD, LL.M, CPA

Partner

Philadelphia, PA

User Photo Brian Weaver, CPA, MBA

Managing Tax Consultant

Des Plaines, IL

User Photo William Rogers, CFP, MBA, EA

Rancho Santa Fe, CA

Title

User Photo Clinton J Donnelly, LLM

International Tax Advisor

Panama City, Panama

User Photo Jim Marshall, EA

President/ Tax And Financial Advisor

Scottsdale, AZ

User Photo Brett A Thompson, JD, CPA

Managing Tax Lawyer

Katy, TX

User Photo Charles Woodson, EA

Tax Advisor/Fiduciary Coach

San Diego, CA

User Photo John Richardson

Tax Lawyer

Toronto, Canada

User Photo Clifford Benjamin

Senior Tax Principal

Daytona Beach, FL

User Photo Kazim Qasim, EA, CTC

Managing Tax Advisor/CEO

Orlando, FL

 

View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

INCREASE KNOWLEDGE WITH EVERY ISSUE OF TAXCONNECTIONS

 

Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today