Watch out! FATCA requires disclosures of foreign accounts

Description

Abstract: Those who hold assets such as bank and other financial accounts or securities from companies outside the United States may need to report them to the IRS. FATCA requires some U.S. taxpayers who have interests in “specified foreign financial assets,” or SFFAs, to provide information on them to the IRS via Form 8938, “Statement of Specified Foreign Financial Assets.” Among the assets the IRS considers SFFAs are foreign financial accounts and instruments, as well as foreign stocks and securities held for investment rather than for use in a business. This article provides critical information to avoid running afoul of foreign accounts.