Listen: Foreign Account Tax Reporting Act (FATCA)

Tax season is upon us, and Arnstein & Lehr’s Chicago partner Robert McKenzie helps shed some light on new rules for offshore foreign account filing. The Foreign Account Tax Compliance Act’s (FATCA) was passed in 2010 after Congress discovered the large number of Americans hiding their money in offshore accounts. The law states that every year, all foreign banks, worldwide, must send an information document on all Americans to the IRS. If a bank does not comply, the IRS can require American banks to withhold 30% of transactions between them. Listen to Bob McKenzie’s audio commentary here.