FATCA stands for the Foreign Account Tax Compliance Act, which became law in March 2010. The point of FATCA is to target tax non-compliance by U.S. taxpayers with foreign accounts. The FATCA focuses on reporting by U.S. taxpayers about certain foreign financial accounts and offshore assets. It also focuses on foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest. The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting. FATCA is being rolled out over time. The deadlines for compliance can be found here.

Wilson Tax Law Group specializes in FATCA compliance. If you should have concerns or questions about FATCA, please contact our tax law office at (949) 397-2292.