Hi I have received the notes from the bank account in my home country where I had to file out this FATCA, w-8 forum based on my US citizenship. What is the purpose of this form? I only used to store the few thousand bucks and I reported my income and pay tax. Does government want to tax my savings? How does it work? On what amount? I am bit skittish to provide w-8 since doing so can compromise the private information including SSN.
https://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts FATCA focuses on reporting: By U.S. taxpayers about certain foreign financial accounts and offshore assets By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.
Looks like two ball droppers here, I did not ask you to elobate about what FATCA is and nor I asked about FBAR. Anyone else knows about the lower thresholds for reporting? According to this IRS, person needs to have 50,000$ in account. I have barely 7,000$. Not sure why they are sending this to the bank. Or has the information in this link been obsolete? https://www.irs.gov/Businesses/Corporations/Summary-of-FATCA-Reporting-for-U.S.-Taxpayers
You ask what the stuff is and then tell the people who tried to help you with it that you don't want their elaboration? Do your own research then.
This is an updated link from IRS. The threshold amount according to the link is $50,000. I have no idea why you would receive such form if you only had $7,000. Also, my understanding was a W-8 form was not for U.S. citizens. https://www.irs.gov/Businesses/Corporations/FATCA-Information-for-Individuals