US FATCA explained for US Persons

Must Comply – Sam Elahee

I have been getting questions from US Persons living in Canada. Most of them are not updated with the US tax law changes in the last five years.

First there was OVDI. Come clean or IRS will take 50% of your assets. File FBAR with your personal financial asset information. FBAR can only be filed through a secure online form. No more paper filing of FBAR.

Now FATCA is in place. Its a wide net of IRS tax laws affecting every country and their financial institution to collect tax revenue from US Persons. Its forcing foreign entities to work as an agent of IRS, with the threat that if they don’t comply, 30% of their revenue sourced in USA will be held by IRS. This is a complex process.

If you a US Person don’t report your off shore account information under FBAR and your bank reports it to IRS under FATCA, all your financial holding is in risk of getting frozen or seized by your foreign bank under the FATCA laws of IRS. Until you can settle the demand of IRS, you won’t have any access to your funds.

So, if you are a US Person, you must comply with IRS FATCA and FBAR laws. It is advised that you work with a tax professional who is expert at US tax laws.

I strongly advise to watch this informative video clip.

FATCA EXPLAINED  – Sam Elahee, International Tax Advisor