Foreign Account and Tax Compliance Act (FATCA) and Foreign Bank Account Report (FBAR)
The tax law FATCA compels that the U.S. citizens at home and abroad can file annual reports on any foreign account holdings. The use of the FATCA model promotes a high transparency rate associated with the International Revenue Services (IRS) from businesses that operate out of the United States territory by US Nationals.FATCA enacted for the purpose of finding the non-U.S. financial accounts of U.S. resident taxpayers.USATAXX is a tax-firm that gained reputation over the years providing several professional tax services and is now among the best tax preparation firms in San Francisco network of firms. We not only operate tax preparation services within the bay areas of California but also we have succeeded to establish a firm with an international standard intervening in the structuring of a stable and standard corporation of any form.
FATCA helps in the promotion of cross border tax payment at an international level by an automated exchange of information related to US taxpayers.
As per The United States taxes all income and assets of its citizens are to be reported globally.US individuals and businesses that are earning taxable income abroad is not illegal but failure to disclose such is considered to be illegal.
Foreign Account and Tax Compliance Act (FATCA)
The use of FATCA model permits for the collection of personal and account information from United States taxpayers by tax authorities on an annual process with the sole intention of retrieving US taxpayers personal information as such, taxpayers and business owners might be fined in situations where the necessary tax preparation documents and reporting are not done properly or incompletely.
At USATAXX we process your documents following every legal action needed to file your tax preparation business documents and establish a proper FATCA system for corporation and family thus helping you keep a record of the necessary transactions at each level. Do not fail to send us an email if you think we could be of help, providing you with the necessary requirements or helping you to channel and complete all financial registration processes for you as an individual as well as your business too.
Who is eligible to file a FATCA
According to the United States federal law, every citizen of this nation is expected to file their financial records globally through professional tax service providers to avoid discrepancies in filing FATCA, that are not in the national territory regardless of where the citizen is and in the same manner, they also receive reports from foreign financial institutions about their US based clients. From this, it is important that every client should come to the understanding that FATCA has it's the greatest impact on Foreign Financial Institutions (F.F.I) in as much as it targets multinational companies and other agencies (withholding agencies) operated by United States Citizens.
Under normal circumstances, 30% of every spending on Foreign Financial Institutions (F.F.I) or to a Non-financial Foreign Entity (N.F.F.E) is withheld by withholding agencies. Also, it should be noted that 30% of any pass-through payment validated to certain wayward account owners is also withheld by the Foreign Financial Institution. A similar situation is experienced when payments are made to other Foreign Financial Institutions that have not met a certain requirement. As such, we help you in the FATCA filing of your prospective documents at all levels. You can contact us for professional tax service providers for FATCA filing and reporting’s for your business institutions.
Foreign Bank and Financial Account (FBAR)
FBAR filing is also referred to as FINCEN form 114 and it's filling is done with the United States Treasury. FBAR filings should include owners Foreign Banks and other Foreign Financial Accounts and also, to file an FBAR, you must reach a cumulative value of up to 10 000 dollars in any of your active bank accounts regardless of the period of the year. This often have several factors that can affect the cumulative amount like for example, marital status. This is done electronically via FINCEN.
FBAR filing is required in situations where the owner has a bank account held by a foreign financial institution but happens to be a branch of the United States Owned bank. At USATAXX, we help you execute an FBAR filling of your business institution even if it's linked to a foreign asset, and our professional tax service team have been handling similar situations for more than 10 years now and we will be happy to help in your FBAR filling.
Who is eligible to do an FBAR filings
Before you check for the eligibility criteria for someone to file an FBAR, it is important to mention that every FBAR is due on the 15th of April of every year otherwise there will be heavy penalties on non-compliance filing of FBAR, and it's not possible to file an FBAR with a federal tax return.
Every citizen of the United States of America is expected to file an FBAR whether you reside or not in the US for as long as they possess or are nominees/signatories for a Foreign Account. Once the individual fulfils such criteria, he should have cumulatively 10000 dollars to be able to complete an FBAR Filing.
Have you considered getting professional and experienced Tax individuals to help you with your FATCA and FBAR filings, you can get to USATAXX and we, the tax consulting service providers will be glad to attend to you with all mekness.
