by Jeff Berwick, Dollar Vigilante:
Are you aware of the Foreign Account Tax Compliance Act (FATCA)? If you aren’t and you are an American with assets outside of the country or have future plans to do so you should be very aware of it!
FATCA is a typical omnibus bill which was originally hidden well inside the Hiring Incentives to Restore Employment (HIRE) Act in 2010 but has not been fully implemented yet due to its complicated, far reaching consequences. It is, however, now set to pass into legislation in the US on July 1, 2014. To the average person it is incomprehensible with all sorts of forms like the FBAR, 1042 and W-8BEN. Even to an advanced tax lawyer it is fraught with landmines. But, in layman’s terms, the effect of FATCA is twofold:
1. It has and will make it very difficult for American’s to have bank accounts outside of the US because foreign banks are not willing to go through the egregious filing requirements and potential penalties demanded on them by the US government if they do accept a US client.
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