AMERICANS IN CROATIA AND OTHER CEE COUNTRIES - BE AWARE OF THE FATCA
And avoid its negative consequences
What is FATCA?
The U.S. Foreign Account Tax Compliance Act ('FATCA') requires non-U.S. financial institutions (banks, insurance companies, investment companies, etc.) to provide information on their U.S. accounts to the IRS. To implement the FATCA provisions the U.S. and partner countries, including Croatia, have concluded separate intergovernmental agreements. The purpose of the agreement is to improve international tax compliance and to tackle tax evasion.
How FATCA reporting works?
Once ratified, the declaration implementing FATCA requirements will oblige the national financial institutions to report the accounts held by the U.S. individuals and businesses to the national Tax Authority. The Tax Authority will then communicate that information with the IRS.
What information will be shared?
The national Tax Authorities will provide the IRS with the following information:
•income from dividends and interest;
•proceeds from the sale of financial products.
What should non-compliant Americans do?
In anticipation of the impact of the FATCA, the IRS is allowing taxpayers to come clean and voluntarily rectify their non-compliance. In this respect, to avoid and prevent possible negative consequences of the FATCA reporting for non-compliant Americans the IRS has set up two programs.
OnestopTaxPrep has over 18 years of specialization in providing combined Dutch and U.S. tax preparation and consulting services. This specialization has assisted U.S. nationals living and / or working in The Netherlands and Dutch nationals living in the U.S.A.