Page 16 - Sotomayor CPAs Presentationt

Form 8938, Pg. 1

1. FATCA Reporting

The Foreign Account Tax Compliance Act (FATCA) was

enacted in March of 2010 to end tax evasion by U.S.
persons holding offshore investments. As part of the

enforcement mechanisms, FATCA requires those

taxpayers with foreign accounts and assets to report

annually to the Internal Revenue Service (IRS) their

interests in financial assets held outside the United States.

This new reporting requirement is in addition to the

disclosures already required by the Bank Secrecy Act of

1970 to be made on the new FinCEN Form 114 (Report of

Foreign Bank and Financial Accounts known as FBAR).

FATCA requires U.S. taxpayers holding specified financial

assets (SFFAs) to report those assets to the IRS on Form

8938 and file the form with the taxpayer’s annual income

tax return.