And How to Respond if You Have Received a Similar Letter
If you are one of the many United States taxpayers who have a bank account in another country, you have probably received a letter in the mail, similar to the ones below. If you haven’t, you will most likely be receiving one soon. The text may be different depending on the bank and the country in which that bank is located, but the message is basically the same – the Internal Revenue Service is intent on getting your financial information.
What is FATCA?
FATCA stands for Foreign Account Compliance Act. This act, among other things, penalizes foreign banks and other financial institutions if they do not disclose information on U.S. taxpayers who bank in their countries. You should be aware the in most cases, foreign institutions and banks are complying with FATCA, and turning over information to the United States Treasury. Even if your account ( or accounts) are small, you should determine whether or not you are in compliance with all off-shore and foreign asset reporting requirements.
don’t Ignore a FATCA Letter
If you have received a FATCA Letter (or expect you may soon) the worst thing you can do is ignore it. The IRS is not going away – you need to deal with your foreign account issues. If you need help determing what you need to do, and your best course of action – we can help. Freeman Tax Law has decades of experience dealing with all aspects of foreign account reporting and compliance. We would be happy to schedule a free 15 minute consultation to discuss your personal tax situation. Please contact us today.