FATCA imposes extensive reporting requirements on US citizens living abroad, compelling them to disclose foreign financial accounts and investments to enhance tax compliance efforts.
The primary goal of FATCA, enacted as part of the HIRE Act, is to combat tax evasion by requiring both individuals and foreign financial institutions to disclose details about US citizens' foreign financial accounts.
For US expats with business interests in the UK, reporting thresholds are set at a year-end balance of $200,000 for single filers and $400,000 for married filers.
Compliance with FATCA requires US expats to file Form 8938 for foreign financial assets and FBAR for accounts exceeding $10,000, adding complexity to their tax obligations.
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