Recently, the IRS completed an initial run of data exchange with a group of countries under the agreements stemming from the passage and implementation of the Foreign Account Tax Compliance Act or FATCA. The IRS has confirmed that automated systems worked well, and data was exchanged successfully between sovereign nations, and between the IRS and offshore banks and investment houses.
The crackdown on foreign banking institutions, investment houses and tax agencies brought about by FATCA has forced offshore banks to follow a host of reporting procedures while facing extensive penalties and criminal exposure for helping US citizens to avoid paying US taxes.
One unintended result has severely impacted US expats overseas. Instead of being welcomed as a source of US dollars and good banking relationships, a key Expat advocacy group has noted that Americans choosing to live and work overseas are being treated as “financial pariahs.” US expats are being routinely rejected by offshore banks because the costly and draconian regulations imposed by FATCA make them more trouble than they are worth.
FATCA has definitely impacted financial strategies worldwide. The IRS increases the amount of information it can access internationally each and every day, and this means one thing for offshore account holders and investors, as well as US Expats:
It is time to come into compliance with IRS FBAR reporting
It seems unjust that FATCA is impeding the lives of our expats overseas, and we hope that this improves over time as relationships re-align and reporting systems come into compliance. If you are a US expat, or a US taxpayer with offshore assets, investments, accounts or income we invite you to contact us for a free and substantive consultation at 866-631-3470.
