Page 16 - Sotomayor CPAs Presentationt
P. 16

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.
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