what is with FATCA?

G

ggelitetrader000

Hi I have received the notes from the bank account in my home country where I had to file out this FATCA, w-8 forum based on my US citizenship. What is the purpose of this form? I only used to store the few thousand bucks and I reported my income and pay tax. Does government want to tax my savings? How does it work? On what amount?

I am bit skittish to provide w-8 since doing so can compromise the private information including SSN.
 
https://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA


The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.
  • FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
  • FATCA focuses on reporting:

  • By U.S. taxpayers about certain foreign financial accounts and offshore assets

  • By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest
  • The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.
 
ggelitetrader000 said:
Hi I have received the notes from the bank account in my home country where I had to file out this FATCA, w-8 forum based on my US citizenship. What is the purpose of this form? I only used to store the few thousand bucks and I reported my income and pay tax. Does government want to tax my savings? How does it work? On what amount?

I am bit skittish to provide w-8 since doing so can compromise the private information including SSN.
More...

This is an updated link from IRS. The threshold amount according to the link is $50,000.

I have no idea why you would receive such form if you only had $7,000. Also, my understanding was a W-8 form was not for U.S. citizens.

https://www.irs.gov/Businesses/Corporations/FATCA-Information-for-Individuals
 
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