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Discussion Starter #1
Hi other Americans,

Has anyone heard about the FATCA declaration?

From what I understand and from speaking with a commercialista, Italian banks will inform the US if you have over €10,000 in your Italian bank and you can then be taxed on that income.

Here is the website. FATCA E I CITTADINI AMERICANI IN ITALIA

Let me know if you've heard about this this....

Thanks,
Terry
 

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Have moved your post over here to our Expat Tax section, where you can find lots of information about FATCA and associated US tax laws.

It sounds like you don't quite understand what FATCA is. Due to the fact that the US has "citizenship-based-taxation" (well, in addition to the more usual residence based taxation), US citizens living overseas are required to report their worldwide income to the IRS every year (at least when their gross income exceeds the filing status thresholds).

For the most part, FATCA is the enforcement side of this long-standing taxation issue, and now the US government is enlisting (actually, kind of "forcing") foreign banks and financial institutions to cooperate by reporting year-end balances (and possibly earnings, at least eventually) for US citizens holding overseas accounts.

But browse around here in the Expat Tax section and you'll find lots of discussions about FATCA, including ways to avoid double taxation.
Cheers,
Bev
 

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Discussion Starter #3
Thank Bev,

I familiar with FATCA and the I understand that I must files taxes as an American living abroad however, the "forcing" of bank compliance is new and I am confused about that.
 

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Discussion Starter #4
Hi other Americans,

Has anyone heard about the FATCA declaration?

From what I understand and from speaking with a commercialista, Italian banks will inform the US if you have over €10,000 in your Italian bank and you can then be taxed on that income.

Here is the website. FATCA E I CITTADINI AMERICANI IN ITALIA

Let me know if you've heard about this this....

Thanks,
Terry
I should have wrote "new FATCA declaration"
 

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FATCA has led to many inter-governmental agreements between the USA and other countries. The result is that foreign governments are/will be reporting bank information to the IRS. The theory is that this will then be matched to information provided to the IRS by the US person.

Your obligation as a US citizen is:

- to report any "foreign* (to the USA) bank accounts if the aggregate balance exceeds $10,000 at any point in the year. This is done on-line on the FBAR website

- complete a Form 8938 if applicable (which is submitted with 1040)

- declare any income arising from the bank accounts on your 1040

Here's a good place to start to understand these issues: Comparison of Form 8938 and FBAR Requirements
 
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