Understanding the Foreign Account Tax Compliance Act (2 hours)

The Foreign Account Tax Compliance Act (FATCA), enacted to target noncompliance by U.S. taxpayers with certain foreign financial accounts and offshore assets, requires U.S. citizens and residents who own certain foreign financial accounts and offshore assets to report those accounts and assets on Form 8938. FATCA also requires foreign financial institutions to report information to the IRS about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. Typically, general tax practitioners encounter FATCA questions when they learn that their clients have foreign assets or foreign accounts and want to know if such items are reportable on Form 8938.

Tax professionals advising clients with respect to foreign account reporting

• Complete Forms 8938 accurately and correctly
• Advise clients with respect to foreign asset required reporting

• Taxpayers required to file Form 8938
• Specified foreign financial assets reportable on Form 8938
• FATCA reporting thresholds for those individuals living in the United States and those living abroad
• FATCA treatment of jointly owned reportable assets
• Meaning of a reportable “interest” in a specified foreign financial interest
• Valuing specified foreign financial assets
• Notable exceptions from the requirement to file Form 8938
• Mechanics of filing Form 8938
• Penalties for failure to file
• Form 8938 and the FBAR
• Foreign Institutional reporting under FATCA