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hi Iamp;#39;m Jennifer from tax TV with some basic information about the foreign account tax compliance act better known as fatka in 2010 President Obama signed the hiring incentives to restore Employment Act that included fatka in an effort to combat tax evasion by us persons holding investments in offshore accounts the new legislation becomes effective December 31st 2012 and applies to certain foreign financial institutions and US taxpayers holding Financial assets outside the country fater requires us taxpayers holding foreign Financial assets with an aggregate value exceeding $50,000 to report information about those Holdings failure to file can result in a penalty of $10,000 being new the fatka rules are not fully understood and the IRS has continued to issue guidance to help businesses that may be affected generally the new rules apply as follows the new law requires foreign financial institutions and non-financial foreign entities to report directly to the IRS informati