FATCA

FATCA, or the Foreign Account Tax Compliance Act, is a U.S. law requiring foreign banks and financial institutions to report information about accounts held by American taxpayers or their foreign entities. Its goal is to prevent tax evasion by ensuring the U.S. government can track income and assets held abroad. Institutions outside the U.S. share this information with the IRS, promoting transparency and compliance. For individuals, this means accurate reporting of foreign accounts to avoid penalties and maintain tax compliance with U.S. laws.