FATCA (Foreign Account Tax Compliance Act)

Description

Financial institutions around the world are required by the Foreign Account Tax Compliance Act (FATCA) to report certain financial activity and U.S. taxpayer accounts. In order to satisfy FATCA reporting and compliance requirements, 5% of the desired withdrawal amount must be paid before the withdrawal is completed. Sections 1471–1474 of the U.S. Internal Revenue Code (IRC), which were passed under the HIRE Act of 2010 and regulate withholding, reporting, and compliance procedures for foreign financial institutions and U.S. taxpayers with foreign assets, support this need.