In the United States, the government enacted laws known as the Foreign Account Tax Compliance Act, or Foreign Account Tax Compliance Act (FATCA), to help prevent tax fraud by American Citizens. These regulations are in place to prevent citizens from opening foreign bank accounts and storing their money there to avoid paying taxes on the interest earned. However, this is often a legal area many individuals don’t understand and thus need the assistance of Foreign Account Tax Compliance Act (FATCA) tax filing services in Jersey City.
Who May Need Assistance
First and foremost, you will need to determine if you require the assistance of Foreign Account Tax Compliance Act (FATCA) tax filing services in Jersey City. United States citizens, including resident aliens who hold a green card, must comply with these regulations, regardless of their physical location. Businesses that are American owned or have a majority shareholder who is American, foreign financial institutions, United States banks and investment firms and worldwide government organizations are all required to follow the laws under this act. If you are unsure whether you need help with this area, you should talk to a qualified accounting firm.
What Is a Foreign Bank Account?
In addition to understanding if you are someone who has to follow the regulations set forth in this act, it’s important to recognize what constitutes a foreign bank account. Any financial deposit accounts opened in a foreign financial institution, accounts held by American banks located on foreign soil, foreign mutual funds, stocks held by foreign institutions and any life insurance policy or annuity held in foreign banks that have a cash out value qualify as a foreign account and must be in compliance. If you own any of these types of accounts, you should consider hiring a firm for Foreign Account Tax Compliance Act (FATCA) tax filing services in Jersey City to ensure you are protected.
Do you think you may benefit from Foreign Account Tax Compliance Act (FATCA) tax filing services in Jersey City? Visit the Work My Taxes website to learn more.
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