FATCA or Foreign Account Tax Compliance Act requires that foreign financial institutions and other foreign nonfinancial institutions report on the assets held by their US account holders. FATCA is part of the HIRE Act or Hiring Incentives to Restore Employment Act. At Sri Recon, we help both institutions and individuals (US persons) file FATCA.

FATCA compliance is through inter-governmental agreements or IGAs and can sometimes be very complicated. Our expertise at FATCA will help you navigate through the process and help avoid heavy penalties that come with non-compliance of FATCA.

Not complying with FATCA can result in a fine of 30% withholding tax of US gross margins.

FATCA for Individuals

• Certain US tax payers holding assets overseas must report those assets
• Form 8938 is used to report FATCA
• Form 8938 must be attached to tax payer’s annual tax returns
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FATCA for Institutions

• Foreign Financial Institutions (FFIs) need to report of their US accounts
• Foreign Institutions also need to file FATCA on their accounts which have substantial US owners
• Most foreign government entities and non-profit organizations may be exempt