# FATCA / please help !!



## sputnik (Jan 10, 2011)

So sorry if already discussed...but I could not find anywhere....well I have been reasearching the new FACTA which goes into effect July 1st....Have read many things so if anyone can clear me up on these issues I would be very grateful:

1. Does FACTA only apply to expats who have foreign banks accts?
2. Does Facta only apply to expats with a certain amount of money over a limit?
3. Does FACTA apply to Expats who have US bank accts but pull cash out of Mexican ATM's?

4. I have an acct with Inter National Bank in Houston, owned by Banorte. They told me it is solely owned by Mexico, but is in the US. I will have my pension direct deposited into that bank, then in Mexico will withdraw money out of their free ATMs ALLPOINT and a few others......I wont automatically have an acct with Banorte but Inter National Bank partners with Banorte....I have been given advice that I do not need a Mexican Bank in Mexico.

Anyway, have heard that if FACTA applies then we are taxed 30% on any money in foreign banks, soon we will be restricted to sending money to mexico and eventually no money will go out of the US ...period...only options left will be return to US...or give up citizenship....not meaning to cry "gloom and doom" just wanting some encouragement here and some facts.....thanks for any and all information


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## joaquinx (Jul 3, 2010)

FATCA :: American Citizens Abroad (ACA)


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## Longford (May 25, 2012)

You might want to also have a look at this FATCA-related discussion which appears a bit further down the list:

http://www.expatforum.com/expats/me...alert-banamex-usa-closing-expat-accounts.html


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## sputnik (Jan 10, 2011)

ok, thank you so much for that ....i read it and appreciate very much you sending.....


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## sputnik (Jan 10, 2011)

Longford, thank you so much for this...i really appreciate it...


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## Bevdeforges (Nov 16, 2007)

You may also want to cast a glance over at the Expat Tax section of the forum: Expat Tax - Expat Forum For People Moving Overseas And Living Abroad

FATCA has been an item of discussion for some time over there.
Cheers,
Bev


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## sputnik (Jan 10, 2011)

ok Bev thank you .....I will read it all !!!!


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## TundraGreen (Jul 15, 2010)

sputnik said:


> So sorry if already discussed...but I could not find anywhere....well I have been reasearching the new FACTA which goes into effect July 1st....Have read many things so if anyone can clear me up on these issues I would be very grateful:
> 
> 1. Does FACTA only apply to expats who have foreign banks accts?
> 2. Does Facta only apply to expats with a certain amount of money over a limit?
> ...


I finally got around to looking at this a little bit. I will summarize it to save people having to visit another web site, but really, if you are a US citizen and have a bank account in a foreign country (like here in Mexico), you probably should look at the US government web sites. If you are not a US citizen or have no foreign financial accounts you can stop reading.

For those still reading:

There are two filing requirements now, FBAR and FATCA, where there used to be just FBAR. 

FBAR is required of everyone with a cumulative foreign bank balance that exceeds $10,000 in a given year. It is required to be filed by 30 June of the following year. It can be filed electronically at BSA E-Filing System - No Registration Filing FBAR. It takes about 10 minutes to fill out if you only have one or two accounts.

FATCA is a new requirement placed on both the banks and the account holders. If you live in the US and have more than $50,000 usd in foreign accounts, you need to file a FATCA. If you qualify as residing outside the US, for example in Mexico more than 330 days a year, the thresholds are $200,000 for an individual and $300,000 for a couple filing jointly. FATCA is filed with your tax return. If you live here in Mexico and have less than $200,000/$300,000 in money in foreign banks or investment accounts, you can forget about FATCA. FATCA :: American Citizens Abroad (ACA)

The 30% penalty, that is mentioned sometimes, applies to the banks not to individuals. If a bank fails to report holdings it has for US citizens it can be fined 30% of those holdings. That is not to say that the bank couldn't pass the penalty on to the customers.

A secondary problem this new requirement is causing is that banks may choose to avoid dealing with these new filing requirements by refusing to accept or closing accounts from US citizens.


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## vantexan (Sep 4, 2011)

Anyone notice that FATCA sounds very close to "Fat Cat?" Just sayin'...


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## sputnik (Jan 10, 2011)

wow, you did alot of research...thank you so very very much...i will print out your research...thank you so much !!


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## sputnik (Jan 10, 2011)

ha ha....i have a whole lot to say about that but I'm sure no one cares to hear me talk about how our govt has gone nuts....so i wont....


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## terrybahena (Oct 3, 2011)

hmmmmm..funny for me: Our US bank account is in my name and our Mexican bank account is in huuby's name- he's Mexican & I'm American......as someone else said..."just sayin'"


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## BGBandler (Jun 29, 2014)

*FATCA Information*

Like me, scores of expats in Mexico got blindsided by the Banamex closing of accounts and did not know where to go for information. Our formerly convenient banking has been disrupted by FATCA, the Foreign Account Tax Compliance Act of 2010. This federal law was passed to crack down on the use of offshore banks, particularly in Zurich and Geneva, to hide taxable assets. While it is “the most important and controversial development in decades in the international fight against tax evasion,” its global reach and high cost of compliance has caused disruption and “fear and loathing” by moneymen as well as ordinary, law abiding U.S. citizens. I find I could not post links, so Google these organizations and articles.

American Citizens Abroad.

Berwick, Jeff. The dollar vigilante blog. "Breaking News: US Expats in Mexico Left Stranded In Latest FATCA Escalation." ]

Democrats Abroad. 
"2014 Report to Members by the FBAR/FATCA Taskforce." 

Economist. Tax evasion: “Dropping the bomb. America’s fierce campaign against tax cheats is doing more harm than good.” The Economist, 2014-06-28. 
_______ "FATCA's flaws." America’s new law on tax compliance is heavy-handed, inequitable and hypocritical. The Economist, 2014-06-28. 

Internal Revenue Service. 
_______ "Foreign Account Tax Compliance Act." 
_______ Statement of IRS Commissioner John Koskinen. 2014-06-18. 

King, Brett. "When HSBC Closes Your Bank Account Without Telling You." HuffingtonPost, 2013-11-29. 
_______Banking4Tomorrow. 

U.S. Department of the Treasury. “Foreign Account Tax Compliance Act” (FATCA). 

Wikipedia. “Foreign Account Tax Compliance Act.”

Wood, Robert W. “FATCA Carries Fat Price Tag.” Forbes, 2011-11-30.


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## TundraGreen (Jul 15, 2010)

There is a story in today's New York Times about the effect of changing banking regulations on international money transfers.

NYTimes article


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