FATCA: Foreign Account Tax Compliance Act

Americans living abroad are subject to US taxation on their worldwide income, as well as a raft of other US reporting requirements, such as having to report their foreign financial accounts each year by filing an FBAR (Foreign Bank Account Report). FBAR reporting is triggered if any American has a total of over $10,000 in foreign accounts […]

Americans who live abroad are required to continue filing a federal tax return each year, reporting their worldwide income, even if they’re also filing a tax return in the country where they’re living. When expats file their federal return they can claim one or more exemptions that the IRS has made available by filing the […]

All Americans have to file an annual federal tax return, even if they live abroad. This is because the US taxes based on citizenship, rather than on residence, so if you’re a US citizen (or green card holder), you have to file US taxes reporting your worldwide income regardless of where in the world you […]

While living overseas is most often an incredible experience, American expats have to file US taxes from abroad, reporting their worldwide income, often as well as having to file taxes in the country where they reside. This is because, unlike most other countries, the US operates a citizenship based taxation system, meaning that all US […]

US expats have been required to file US taxes since the nineteenth century, however it’s only since the Foreign Account Tax Compliance Act (better known as FATCA) was passed in 2010 that the IRS has had the means to enforce this requirement. FATCA requires US expats with over $200,000 in financial assets held overseas to […]

America has an unusual tax system, as it’s based on citizenship rather than residence. This means that all US citizens (and green card holders) are required to file US taxes, whether they live in the US or abroad. Nine million Americans are currently living abroad, however many of them aren’t aware of the requirement for […]

The Foreign Account Tax Compliance Act (FATCA) was signed into law in 2010 with the aim of cracking down on tax evasion to increase tax revenue following the financial crisis. FATCA contained two important measures that affect expats, a reporting requirement for expats who have financial assets abroad, and a reporting requirement for foreign banks […]

All Americans, including expats, have to file a US tax return and report their worldwide income. All Americans are also liable to pay US taxes, even on foreign-earned income, however there are some exclusions and exemptions available that remove most US expats from ending up having to pay anything. Expats still have to file though […]

Last updated April 25, 2023. All US expats must file a US tax return to report their worldwide income. This is due to the citizenship-based taxation schema that the US uses, which makes US expats liable to pay US taxes, even on foreign-earned income. Fortunately, there are many exclusions and exemptions available that can often […]

What is FATCA? FATCA, or the Foreign Account Tax Compliance Act, is a law introduced in 2010 to help prevent offshore tax evasion that requires foreign financial institutions to report their American account holders to the IRS, including contact details and account balances, and Americans with assets abroad that meet certain requirements to report them […]