What is FATCA for Expats?

FATCA is the 2010 Foreign Account Tax Compliance Act, a law that affects expats in two ways. Firstly, it compels all foreign banks and investment firms to report their American account holders to the IRS or pay a tax when they trade in US markets.

FATCA News

FATCA also requires expats with over $200,000 in foreign financial assets to report them each year by filing form 8938 when they file their federal tax return. You can find information and news relating to FATCA updates int he articles below.

Record Numbers of Americans are Renouncing US Citizenship

Record Numbers of Americans are Renouncing US Citizenship

Numbers of Americans renouncing has accelerated Every three months, the state department publishes how many people renounced their citizenship in that quarter. The most recent figure is 1426, which is a new record. To put that into context, in 2008, just 235 people renounced their US citizenship in the whole year. The number has been […]

US Expats Could Lose Their Passports for Overdue Taxes

US Expats Could Lose Their Passports for Overdue Taxes

Hidden inside a highway funding bill that Congress is expected to pass later this month, is a measure that will give the State Department the ability to revoke the passports (or deny their renewal) of people who are behind on their taxes, the Wall Street Journal recently reported. The new law will affect people who […]

How to Respond when Foreign Banks Ask For Your U.S. Taxpayer ID?

How to Respond when Foreign Banks Ask For Your U.S. Taxpayer ID?

Currently, an estimated nine million Americans are living abroad. The majority have accounts at foreign banks, and many of them are now receiving letters from their banks asking for their US tax identification numbers. Some are also asking their American clients to certify that they are current with their US tax filings.   FATCA, the […]

A Lesson in the Law of Unintended Consequences

A Lesson in the Law of Unintended Consequences

The following is an excerpt from ‘An American Tax Nightmare’, published in the New York Times. No one likes tax cheats. They should be pursued and punished wherever they are hiding. But recent efforts by the United States Congress to capture tax revenues on unreported revenues and assets held in foreign accounts are having disastrous […]

An Astounding 77,000 Banks, 70 Countries Now Reporting Americans To IRS

An Astounding 77,000 Banks, 70 Countries Now Reporting Americans To IRS

An astounding 77,000 banks and financial institutions—even some in Russia—have registered under FATCA—the Foreign Account Tax ComplianceAct. America’s global tax law requires foreign banks to reveal American accounts holding over $50,000. Non-compliant institutions could be frozen out of U.S. markets, so everyone is complying. The fact that 77,000 banks have registered and some 70 countries […]