FATCA Strikes Again. Taxpayers who sought to hide their money overseas lost six more safe havens in the past week as the U.S. Treasury Department signed anti-tax evasion pacts with Bermuda, Malta, the Netherlands and three UK Crown Dependencies: Jersey, Guernsey and the Isle of Man.
There are now agreements with 18 foreign jurisdictions to enforce FATCA – The Foreign Tax Compliance Act.
According to the IRS, individual U.S. Residents along with a select number of non-resident individuals who have accounts overseas valued over $50,000 must comply with FATCA by filing an IRS Form 8938 with their tax returns. Notably:
- If the total value is at or below $50,000 at the end of the tax year, there is no reporting requirement for the year, unless the total value was more than $75,000 at any time during the tax year
- The threshold is higher for individuals who live outside the United States
- Thresholds are different for married and single taxpayers
- Taxpayers who do not have to file an income tax return for the tax year do not have to file Form 8938, regardless of the value of their specified foreign financial assets.
Penalties apply for failure to file accurately
The Treasury Department was not shy about trumpeting these achievements:
“This large number of signings in one week alone sends a strong signal to tax evaders everywhere: International support for FATCA is growing, “said Deputy Assistant Secretary for International Tax Affairs Robert Stack
Do you have an account overseas and are concerned about the impact of FATCA upon you? Give us a call.