US TaxesFATCA and US TaxesALL U.S. citizens who work or reside abroad must report and file their worldwide income.
FATCA and U.S Taxes
ALL U.S. citizens who work or reside abroad must report and file their worldwide income. IRS Publication 54, “Tax Guide for U.S. Citizens and Resident Aliens Abroad,” contains additional information.
The FATCA law aims to increase tax compliance regarding offshore accounts and foreign financial assets. Non-compliance can result in serious penalties. According to FATCA, American taxpayers who have certain foreign financial assets above a certain threshold are required to report them to the IRS.
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Your foreign bank information is reported on this form annually to the US Treasury. The FBAR form is technically not a tax form because, despite being handled by the US Treasury Department, it does not result in taxes or amounts owed. It must be filed by numerous persons and has an informational purpose. If the amount of the account(s) exceeds a threshold during the year, individuals and US corporations who own, or have an interest in, overseas bank accounts or financial accounts, must file this form.
The IRS announced new, simplified filing requirements for non-resident U.S. taxpayers on June 26, 2012. These procedures acknowledge that some American taxpayers with foreign addresses have not filed FBARs or federal income tax returns on time, but that they have recently learned of their filing requirements and are attempting to comply with the law. These new policies apply to non-residents who haven't submitted their U.S. income tax and information returns, including but not limited to dual citizens.