Introduction
The acronym FATCA stands for Foreign Account Tax Compliance Act, created in 2010 or so in tandem with Internal Revenue Code section 6038D. To guarantee that US taxpayers who are dispersed throughout the world are actively disclosing their overseas assets, accounts, investments, and income, the government created this worldwide asset reporting rule. FATCA Reporting, often filed on Form 8938 to the IRS, is a component of the US Tax Return, unlike other overseas information reporting forms. Let’s explore it more in the blog.
FACTA Reporting
The Committee on Petitions, in particular, and the European Parliament as a whole have the highest regard for the boundaries of the Union’s jurisdiction, which are based on the idea of conferral, which states that to achieve the goals outlined in the Treaties, the Union must act solely within the bounds of the authority granted to it by the Member States.
We submit the following suggestions to the appropriate authorities in light of this fact-finding visit:
- To guarantee that US persons and financial institutions in the EU get accurate, free, and thorough information regarding FATCA compliance;
- To enable EU nationals who must comply with FATCA reporting to utilize streamlined reporting or to be individuals who have a legitimate long-term presence in the EU are entirely excluded from it;
- To guarantee that the injustices brought about by FATCA, particularly those that result in monetary penalties, are waived for dual citizens of the US and the EU who live and work in the EU as well as unintentional Americans;
- To help EU nationals and financial institutions comply with tax laws, including by reestablishing tax attachés at US consulates and embassies and enhancing the accessibility of hotlines and internet tools;
- For the Member States to require the Commission—by Article 216 of the Treaty on the Functioning of the European Union to work with the US to draft a single FATCA agreement that would replace the current bilateral IGAs.
- To work with the US side to give anyone who wishes to do so a simple and convenient way to renounce their US citizenship;
- To guarantee complete exemption from FATCA reporting for US residents who have never worked in the country and have never resided there as adults;
- To guarantee the implementation of the Payment Accounts Directive, which grants every EU citizen access to a basic payment account;
- To coordinate EU efforts in support of easing financial institutions’ and EU citizens’ FATCA compliance obligations;
- To request that the US government regularly provide financial institutions and US people with guidance on complying with FATCA;
- To form a working group between the EU and the US on FATCA compliance;
- To guarantee that, when applicable, the pertinent EU data protection regulations are followed.
How Can DataTracks Help?
With a question, FATCA/CRS compliance is easier and more convenient. Collaboration between multiple business lines and geographical areas is necessary. Implementing an all-inclusive FATCA/CRS system can significantly lower validation expenses and errors. Using data elements, including customer name, ID, and tax identification number, DataTracks’ FATCA/CRS reporting services help financial institutions link accounts of individuals and companies across various business units, allowing aggregation.
Call us at +31 20 225 3702 or email [email protected] for any business enquiries.
