I recently got a letter from an overseas bank (not USA) requiring personal info re tax residency. Bank says it is obliged to obtain information from bank account holders under The Foreign Account Tax Compliance Act.

 

Does anyone knw anything about this ? From my research it seems it is only concerned wth USA citizens living overseas?

 

Anything else I should know?

 

Thank you in advance.

 

 

 

 

 

FATCA, I believe, applies both to Americans living in the U.S. and abroad if they have varying levels of foreign financial assets as defined in the law.

 

The thresholds for FATCA reporting, though, are different for folks living in the U.S. (lower thresholds) vs those living abroad (higher thresholds).

 

https://www.irs.gov/businesses/corporations/fatca-information-for-individuals

 

Taxpayers living abroad. You must file a Form 8938 if you must file an income tax return and:

• You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. These thresholds apply even if only one spouse resides abroad. Married individuals who file a joint income tax return for the tax year will file a single Form 8938 that reports all of the specified foreign financial assets in which either spouse has an interest. 
• You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200,000 on the last day of the tax year or more than $300,000 at any time during the year. 

Taxpayers living in the United States. You must file Form 8938 if you must file an income tax return and:

• You are unmarried and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year 
• You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. 
• You are married filing separate income tax returns and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. For purposes of calculating the value of your specified foreign financial assets in applying this threshold, include one-half the value of any specified foreign financial asset jointly owned with your spouse. However, report the entire value on Form 8938 if you are required to file Form 8938.

 

https://www.irs.gov/businesses/corporations/summary-of-fatca-reporting-for-us-taxpayers

 

Under the FATCA US/UK agreement UK banks are obliged to report any customer, irrespective of nationality, if it is told by the customer or discoverers a permanent financial relationship in the US.

 

 

 UK - US Automatic Exchange of Information Agreement (FATCA) - GOV.UK (www.gov.uk)