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FATCA

August 22, 2026 · Aditya Gupta

Tax

Foreign Account Tax Compliance Act (FATCA) is a 2010 US law requiring American taxpayers to report foreign financial accounts and foreign financial institutions to report on US account holders. US taxpayers must file Form 8938 if foreign accounts exceed $50K (single) / $100K (joint) at year-end or $75K/$150K at any time during the year. Penalties for non-disclosure: $10K minimum, up to $50K with continued failure. FBAR (separate requirement) reports foreign accounts over $10K aggregate. FATCA has dramatically reduced US offshore tax evasion. Affects: expats, immigrants with home-country accounts, anyone with foreign retirement accounts. Comply religiously — penalties can exceed account values.

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