FATCA was enacted in 2010 by Congress to target non-compliance by U.S. taxpayers using foreign accounts. FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. FFIs are encouraged to either directly register with the IRS to comply with the FATCA regulations (and FFI agreement, if applicable) or comply with the FATCA Intergovernmental Agreements (IGA) treated as in effect in their jurisdictions.
For access to the FATCA regulations and administrative guidance related to FATCA and to learn about taxpayer obligations please visit the Internal Revenue Service FATCA Page.
In order to see the list of countries who have “in force” agreements with the United States IRS, you can view the list here.
4 comments on “Foreign Account Tax Compliance Act (FATCA) Intergovernmental Agreements”
FACTS on FATCA
1). FATCA is toxic twin of US only immoral, unethical non-resident tax.
2) . FATCA extorts foreign financial institutions into becoming arms of IRS (at their expense) to hunt down innocent, unrepresented low-middle class people living abroad whose only crime is having US indicia. US salivates over dream of penalizing them into bankruptcy for form filing delinquency. (Most NEVER heard of FBAR till recently, penalties alone bankrupting. Most never knew of obligation as left US in diapers or born abroad to US person; it makes zero sense.)
3). FATCA Model 1 IGA’s promised reciprocity. It’s been ten years, US has not reciprocated yet; these agreements must be declared null and void, made in bad faith. US has NOT joined OECD’s common reporting standard which requires reciprocity, is NOT unethically based on citizenship.
4). FATCA has simply eliminated competition in tax haven business vaulting US to #1.
5). FATCA is increasingly causing banking to be denied to anyone with US indicia as financial institutions fear US draconian penalties for errors. 9M US citizens abroad need a bank account to pay the bills, receive their pay check, hold their mortgage. USG cannot discern difference between US residents off-shoring and US citizens living abroad banking locally (and paying taxes to nations in which they reside, receive benefit).
6). FATCA costs more than reaps.
7). FATCA is a simplistic scheme, true tax evaders long gone. Only morons would have their illicit funds sitting in accounts waiting to be FATCA’ed. FATCA is simply Kool-aid used to hoodwink citizenry into thinking USG is addressing tax evasion issue without having to do the honest, hard leg work required to ‘Follow the Money”.
Solutions:
1). US level playing field, stop using citizens as Trojan Horses to steal assets from other nations’ economies by joining remainder of world and tax based on residency, join universal norm: OECD Common Reporting Standard.
2). Other nations must unite and tell US to ‘go fish’ on this non-reciprocal, extortionary, costly policy on top of which allows their citizens to hide illicit funds in US. Time for other world leaders to stop being cowards in face of US imperialism, extraterritorial overreach. Their laws end at their borders, period.
3). US can enforce such extortion as it controls reserve currency and SWIFT. Time for a change, US has weaponized privilege in multiple areas. (As US heavily funds OECD they will not readily call out nor sanction US, this also must change). Time for US to chose to play fair or other nations must find the backbone to force them to do so.
“US salivates over dream of penalizing them into bankruptcy for form filing delinquency. (Most NEVER heard of FBAR till recently, penalties alone bankrupting. Most never knew of obligation as left US in diapers or born abroad to US person; it makes zero sense.)”
Really? Can we name even one US person who left in diapers or who was born abroad to US parents who has been discovered by the IRS, let alone bankrupted? Anyone frightened into voluntary tax compliance does not count.
Folks with US place of birth are being reported by their banks to IRS under FATCA legislation. They are also increasingly being denied all banking. Those born abroad to US persons are having to lie to banks to not be reported (they are less discoverable).
http://on.wsj.com/2dlM17d
https://www.youtube.com/watch?v=7kK5teCY3Qw
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