What is FATCA?
FATCA stands for the Foreign Account Tax Compliance Act. It is a United States federal law that aims to combat tax evasion by U.S. persons holding investments in offshore accounts. FATCA requires foreign financial institutions (FFIs) to report to the Internal Revenue Service (IRS) information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
Under FATCA, FFIs are required to identify U.S. account holders and report certain information about those accounts to the IRS or their local tax authority, depending on intergovernmental agreements (IGAs) negotiated between the U.S. and other countries. U.S. taxpayers are also required to report their foreign financial assets on Form 8938, Statement of Specified Foreign Financial Assets, which is filed with their annual income tax return if they meet certain asset thresholds.
FATCA reporting is a key component of the U.S. government's efforts to improve tax compliance and prevent offshore tax evasion. Failure to comply with FATCA reporting requirements can result in significant penalties for both FFIs and U.S. taxpayers.
Our team specializes in assisting individuals with the complex requirements of FBAR reporting. We will guide you through the process of disclosing foreign financial accounts, ensuring full compliance with the Bank Secrecy Act. From identifying reportable accounts to filing the necessary forms, we simplify the FBAR reporting process for our clients.
Personal Consultation
Understanding your specific financial situation is the key to effective FATCA compliance. We begin with a personal consultation to assess your foreign financial assets, identify reportable accounts, and discuss any potential compliance issues. This tailored approach ensures that our services are aligned with your unique circumstances.
Document Review and Preparation
Our experts review and assist in the preparation of Form 8938 for FATCA compliance. We ensure that all necessary information is accurately captured to meet regulatory standards.
Penalty Mitigation
In the event of compliance issues or penalties, we work diligently to mitigate potential consequences. Our experts assist in resolving any outstanding matters with the IRS, helping you navigate the process and achieve a satisfactory resolution.
At AZP, we are committed to providing comprehensive FATCA reporting and compliance services. Contact us today for a consultation to ensure that your foreign financial assets are managed in accordance with the latest regulations.