FATCA requires FFIs to report certain information to the Internal Revenue Service (IRS) about U.S. citizens who have accounts with them. The information includes things like the account holder’s name, address, and Social Security number, as well as the total amount of assets in the account. This information is then used by the IRS to ensure that U.S. citizens are accurately reporting their income and paying the necessary taxes on it. 

The FATCA detail requirements apply to most FFIs, including banks, brokerage firms, mutual funds, hedge funds, and certain other entities. These institutions must report certain information to the IRS about U.S. citizens who have accounts with them. 

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The information that must be reported to the IRS under FATCA includes the account holder’s name, address, and Social Security number, as well as the total amount of assets in the account. Additionally, FFIs must report the account balance, any interest earned, and any dividends or other income earned from investments in the account. 

FFIs must file their FATCA reports with the IRS at least once a year. The reports must be filed by the end of June each year, and include information from the previous year. 

Conclusion

FATCA is an important piece of legislation that requires FFIs to report certain information to the IRS about U.S. citizens who have accounts with them. This information is used by the IRS to ensure that U.S. citizens are accurately reporting their income and paying the necessary taxes on it. FFIs must file their FATCA reports with the IRS at least once a year, and failure to do so can result in significant penalties.