Foreign Account Tax Compliance Act (FATCA) The Foreign Account Tax Compliance Act (FATCA) is a tax law that compels U.S. citizens at home and abroad to file annual reports on any foreign account holdings.Who can use the FATCA registration system?
Financial institutions can use the FATCA registration system to manage their accounts. Financial institutions and host country tax authorities can transmit and exchange FATCA data with the United States. What form do I need to report my foreign financial assets?What is the FATCA legistlation for business customers?
Business customers will be classified according to the FATCA legistlation (For example, a US persons, foreign financial institutions or non-financial foreign entities.) Report information to the IRS or local tax authority on all accounts held directly or indirectly by US persons.What is the difference between FBAR and FATCA forms?
It should be filed at the same time as their regular tax returns. FATCA applies to individual citizens, residents, and non-resident aliens while FBARs also apply to trusts, estates, and domestic entities with interests in foreign financial accounts. Residents and entities in U.S. territories must file FBARs but not FATCA forms.