FATCA (Foreign Account Tax Compliance Act)
A US law requiring foreign financial institutions and certain US taxpayers to report foreign financial accounts and assets to the IRS.
Detailed Explanation
FATCA is enforced through Form 8938 (Statement of Specified Foreign Financial Assets), filed with the Form 1040 by US persons whose foreign assets exceed thresholds (e.g., $50,000 single end-of-year / $75,000 single anytime for US-resident filers, higher for joint and overseas filers). FATCA also imposes 30% withholding and reporting obligations on Foreign Financial Institutions (FFIs). FATCA reporting is in addition to, not in place of, the FBAR.
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Learn about International TaxationRelated Terms
FBAR (Report of Foreign Bank and Financial Accounts)
A FinCEN Form 114 filing required of US persons who hold foreign financial accounts with an aggregate value exceeding $10,000 at any point during the year.
Form 8938 (Statement of Specified Foreign Financial Assets)
A FATCA-related form filed with Form 1040 to report foreign financial assets that exceed specified thresholds.
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