Expat Tax Lawyers | Getting FATCA & FBAR Compliant – International Tax
Even though FATCA (Foreign Account Tax Compliance Act) was designed the intent of reducing offshore tax evasion, the implementation of FATCA is having an unintended major negative impact for United States expats residing overseas.
FATCA has instilled fear in the hearts of Foreign Financial Institutions (FFIs) worldwide. As a result, many FFIs are making it very difficult (although not impossible) for expats to open accounts in the foreign country at issue.
Proving FATCA Compliance
In order to try and avoid the rejection of an FFI from opening your account, and/or preventing the foreign bank from closing or downgrading your account, it is crucial that you can prove compliance with FATCA. For the most part, that will include filing an FBAR (Report of Foreign Bank and Financial Account) and ensuring that all the necessary tax return information is completed properly (Schedule B and 8938 if applicable).
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