FATCA – 5 Important Facts Every U.S. Person Should Know
FATCA is the Foreign Account Tax Compliance Act, and it is enforced by the IRS. It was designed with the goal of reducing offshore tax evasion and facilitating financial transparency by requiring certain reporting by institutions and Individuals.
FATCA reporting required by Financial Institutions, Intermediaries, Agents, and certain Individuals. We will focus this list on the individual requirements.
Foreign Account Compliance Tax Lawyers – Golding & Golding (Board-Certified in Tax)
Golding & Golding represents clients worldwide in over 70-countries exclusively in Streamlined, Offshore and IRS Voluntary Disclosure matters. We have successfully completed more than 1000 streamlined and voluntary disclosure submissions.
Our Team Lead is a Board Certified Tax Law Specialist (Less than 1% of Attorneys nationwide) and Enrolled Agent, with a Master’s of Tax Law (LL.M.)
Mr. Golding leads his team in each and every case we accept for submission.
- Learn more about the Board Certified Tax Law Specialist credential
- Learn the benefits of the IRS Enrolled Agent credential
- Learn more about Golding & Golding’s Case Accomplishments
- Learn more about Golding & Golding Testimonials from prior clients
We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants and Financial Professionals worldwide.
5 Important FATCA Facts Every U.S. Person Should Know
While there are many aspects to FATCA, here are 5 common facts for individuals who may have a FATCA reporting requirement:
FATCA Is Reported by Individuals on Form 8938
The IRS (Internal Revenue Service) introduced Form 8938 in 2011. It is part of the U.S. tax return, which means unlike various other international reporting forms (3520-A, 5471, 8865), the form is generally included as part of commercial software programs, such as TurboTax or TaxACT.
FATCA has Many Different Reporting Thresholds
Unlike the FBAR — which has a single “annual aggregate total of more than $10,000” reporting requirement, FATCA has several thresholds. The reporting thresholds vary based on U.S. residence vs. foreign residence, and filing status
Not All Assets are FATCA Specified Foreign Financial Assets
FATCA does not require individuals to report all their foreign assets. Rather, the individual is required to report “Specified Foreign Financial Assets.” You should refer to the IRS instructions, or speak with a Specialist.
You Must Have an Interest in the Asset
Unlike the FBAR, which requires filers to include joint accounts, and accounts in which the individual may not have a financial interest, individual FATCA reporting is different. A filer is only required to include assets in which the filer has an interest.
Late FATCA Reporting without using Reasonable Cause or Amnesty
If you have not filed prior year Form 3520 forms, it is not as simple as just back-filing the forms. If you back-file, without submitting to IRS Tax Amnesty and/or submitting in conjunction with a Reasonable Cause statement, you are almost guaranteed to be penalized.
Interested in Filing under FATCA & IRS Tax Amnesty Procedures?
No matter where in the world you reside, our international tax team can get you IRS offshore compliant.
Golding & Golding specializes in offshore tax and reporting amnesty. Contact our firm today for assistance with getting compliant.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.