Foreign Account Tax Compliance Act

Foreign Account Tax Compliance Act

Acronyms (colloquial)	FATCA
Enacted by	the 111th United States Congress
Effective	March 18, 2010 (26 USC § 6038D); December 31, 2012 (26 USC §§ 1471-1474)
Citations
Public law	111-147
Statutes at Large	124 Stat. 71, 97-117
Codification
Titles amended	26
U.S.C. sections created	26 U.S.C. §§ 1471–1474, § 6038D
U.S.C. sections amended	26 U.S.C. § 163, § 643, § 679, § 871, § 1291, § 1298, § 4701, § 6011, § 6501, § 6662, § 6677
Legislative history
Introduced in the House and Senate as Foreign Account Tax Compliance Act of 2009 (S. 1934, H.R. 3933) by Max Baucus (D–Montana); Charles Rangel (D–NY-13) on October 27, 2009 Committee consideration by Senate Finance, House Ways and Means Passed the Senate on February 24, 2010 (70-28) Passed the House as the Hiring Incentives to Restore Employment Act, Title V, Subtitle A on March 4, 2010 (217–201) with amendment Senate agreed to House amendment on March 17, 2010 (68–29) Signed into law by President Barack Obama on March 18, 2010

The Foreign Account Tax Compliance Act (FATCA) is a 2010 United States federal law to enforce the requirement for United States persons including those living outside the U.S. to file yearly reports on their non-U.S. financial accounts to the Financial Crimes Enforcement Network (FINCEN). It requires all non-US ('foreign') financial institutions (FFIs) to search their records for indicia indicating 'US-person' status, such as a US birthplace, and to report the assets and identities of such persons to the US Department of the Treasury. FATCA was the revenue-raising portion of the 2010 domestic jobs stimulus bill, the Hiring Incentives to Restore Employment (HIRE) Act, and was enacted as Subtitle A (sections 501 through 541) of Title V of that law. FATCA is controversial because governments and banks have been forced to comply under threat of a 30% withholding penalty of all U.S. dollar transactions. The U.S. has yet to comply with FATCA itself, because as of 2017, it has not yet provided the promised reciprocity to its partner countries and it has failed to sign up to the Common Reporting Standard (CRS). FATCA has also been criticised for its impacts on Americans living overseas, and implicated in record-breaking numbers of U.S. citizenship renunciations throughout the 2010s. Bills to repeal FATCA have been introduced in the U.S. Senate and House of Representatives, citing its unconstitutionality, particularly its breach of 4th Amendment rights, as well as its high implementation costs and lack of revenue generation. A hearing on the unintended consequences of FATCA was held by Congress's Oversight and Government Reform committee on 26 April 2017.

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