FATCA(Foreign Account Tax Compliance Act) - Bank Respublika 2025

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The Foreign Account Tax Compliance Act (FATCA) is tax information reporting regime, which requires Financial Institutions (FIs) to identify their U.S. accounts through enhanced due diligence reviews and report them periodically to the U.S. Internal Revenue Service (IRS) or in case of Inter-Governmental agreement(IGA),
Foreign Account Tax Compliance Act (FATCA) is a law aimed at preventing tax evasion by US taxpayers holding financial assets in foreign accounts. FATCA requires foreign financial institutions to report information about accounts held by US taxpayers to the US Internal Revenue Service (IRS).
Exempted financial assets: Some types of financial assets are exempt from FATCA reporting, including certain retirement accounts like IRAs (Individual Retirement Accounts) and most foreign real estate.
If you have an investment interest in the social security, social insurance, or a foreign government program of a similar nature, youll not have to report such investments under FATCAs regulations. The key here is that such an investment has to be through a government program.
The best way to avoid FATCA penalties is to file Form 8938 accurately and on time when required. If you realize, however, that youve fallen behind on Form 8938 or other aspects of your US expat tax filings you may be able to catch up through an IRS amnesty program called the Streamlined Filing Procedure.
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The ruling issued by the Federal Trade Commission (FTC) and 5 Federal bank regulatory agencies applies specifically to Section 114 of FACTA and addresses an array of accounts, organizations, and consumers, including: Retail and business customers. Existing and new accounts. Financial institutions and creditors.
Passed as part of the HIRE Act in 2010, FATCA requires U.S. persons, foreign financial institutions (FFIs), and other non-financial foreign entities (NFFEs) to provide the United States Department of the Treasury reporting on foreign assets or be subjected to serious penalties.
The Bottom Line. FATCA requires foreign financial institutions to report on the assets held by U.S. account holders. It also requires U.S. citizens and residents to file annual reports on any foreign account holdings they have. Filing is done by completing and sending in Form 8938.

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