Update on IRS’s Foreign Account Tax Compliance Act (FATCA)

The IRS and the Department of the Treasury really want to know where your assets are located outside of the country,
In blue, below, is their recent updated.  Meanwhile, the White House issues forty pages of pre-exchange control regulations, on this link.
The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to improve tax compliance involving foreign financial assets and offshore accounts.Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season.In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.

 

Information for U.S. Taxpayers Information for Foreign Financial Institutions

The following draft Form 8938 and instructions will be replaced with final versions as soon as changes are made conforming them to the temporary regulations below.
  • “Summary of Key FATCA Provisions”
  • News Release — (IR-2011-76, 7/14/2011) “Treasury and IRS Issue Guidance Outlining Phases Implementation of FATCA Beginning in 2013.”
  • Notice 2011-53 — Chapter 4, “Implementation Notice,” describes the timeline for the implementation of FATCA and discusses matters that will be addressed in regulations by Treasury and the IRS.
  • Notice 2011-34 — “Supplemental Notice to Notice 2010-60, Providing Further Guidance and Requesting Comments on Certain Priority Issues Under Chapter 4 of Subtitle A of the Code”
  • Notice 2010-60 — “Notice and Request for Comments Regarding Implementation of Information Reporting and Withholding Under Chapter 4 of the Code,” IRB 2010-37, dated September 13, 2010.

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  1. Pingback: White House issues 45 pages of Pre-exchange Control Regulations at International Tax Counselors Blog

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