TaxGuided
All glossary terms

Glossary term

FATCA (Foreign Account Tax Compliance Act)

Statutory regime requiring foreign financial institutions to report U.S.-owned accounts to IRS.

Related terms

2

Jurisdictions

us

Definition

FATCA, enacted in 2010 and codified at Sections 1471-1474, requires foreign financial institutions to identify U.S. account holders and report to IRS or face 30 percent withholding on certain U.S.-source payments. Intergovernmental agreements (IGAs) facilitate compliance.

Examples

  • A foreign bank with U.S. account holders enters into an FFI Agreement with the IRS to comply with FATCA.

Translations

ESFATCA
ZHFATCA
DEFATCA
FRFATCA
JAFATCA

Citations

26 U.S.C. · 1471

Related citations

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Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.