U.S. Citizen Challenges FATCA Reporting Requirements

A U.S. citizen living in Saudi Arabia who claimed that FATCA (the Foreign Account Compliance Act) violated his constitutional rights has had his case dismissed by the district court.  The individual argued that FATCA violated the constitution because it requires that foreign finanical institutions provide financial informations to the government, which he stated constituted an unlawful search and violation of due process and equal protection rights.

The case was dismissed by the court as the individual failed to establish that he had standing to bring the suit because he didn’t sufficiently allege that he was in fact injured by FATCA or that any FATCA-related harms to him were imminent.

The taxpayer’s complaint stated that he owned bank reports that will be subject to FATCA reporting.  However, he didn’t establish that any information has actually been provided to the U.S. government.  He also didn’t provide any facts regarding his accounts, so the court couldn’t determine whether they were of a size sufficient to trigger reporting requirements.