FundRobot » Child Investment Accounts » i need fatca help plz?

Old   #1 (permalink)
Posts: 2,512
Default i need fatca help plz

So i read that fatca requires foreign banks to release info on american customers, but how do they know who is american? My friend has a bank account in a foreign country, but he never put down that he was a us citizen and the bank has no idea.
The question, how would the IRS find him...?
okay, thanks for your response but you are not helping. I am simply asking if this new fatca act will affect my friend since it says that all foreign banks must report us customers, but he did not file as a us citizen when he opened his bank in a different country so doesn't that mean the bank won't file him as a us citizen?

PC_4Ever is offline   Reply With Quote
Old   #2 (permalink)
Posts: 2,553
Default i need fatca help plz

The banks and financial institutions have a wide set of criteria they are looking for to indicate if an account holder is a 'US person'. Bear in mind, FATCA is about accounts of 'US persons', not just US citizens. A US person defined by FATCA could be the following: A US citizen, someone born in the US but who moved away as a child, someone who never lived in the US but was born to a US parent, someone who holds a joint account with a US person such as a spouse or a family member, someone who spends part of their time in the US - the list goes on and on.

Whether or not your friend indicated they were a US citizen when opening the account is irrelevant. Bank will be looking for such indicea as: US address or phone numbers on the account, transfers of funds to the US, or transfers coming in from the US, etc. There are entire lists of criteria that banks are searching for - so the possibility that your friends account could be caught might be high. Or your friend could get lucky if the account doesn't contain any of the identifying criteria that his particular bank is looking for.

Your friend needs to bear in mind that not reporting the account is a criminal offense. The IRS is coming down hard on people who have not reported. Your friend should seek advice from a professional tax attorney.

I will mention that I am completely against FATCA as it stands. The law is overbearing and uses extortion to force other countries to act as IRS agents. It will never accomplish what it was set out to do and will punish lower and middle class US expats living overseas. Also, FATCA is going to create another HUGE database of financial information from foreign countries that the IRS, CIA and NSA will use for their own purposes.
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