The Treasury Department and Internal Revenue Service have issued final regulations for their global reporting demands under the controversial Foreign Account Tax Compliance Act (FATCA).
Enacted by Congress in 2010, FATCA was created to target non-compliance by U.S. taxpayers using foreign accounts s a means of tax evasion. It requires foreign financial institutions (FFIs)to report to the IRS information about accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. American’s with $50,000 or more of assets held by a foreign institution are targeted.
