The scope of the FATCA has expanded to Canada and Hungary

05.02.2014

On the 5^th of February, 2014 the U.S. Treasury Department stated that the United States signed an intergovernmental agreement (IGAS) with Canada and Hungary to implement provisions of Foreign Account Tax Compliance Act (FATCA). In the middle of December 2013 the U.S. Treasury Department signed several agreements, including treaties with Italy and Mauritius

In 2010 U.S. Congress adopted FATCA in order to identify taxpayers of U.S. who use foreign accounts and also it allows establishing new global standards of tax transparency. The United States have signed 22 intergovernmental agreements and 12 agreements on exchange of tax information by today.

Foreign Account Tax Compliance Act will enter into force on 1st July, 2014.

Based on: http://www.treasury.gov/press-center/press-releases/Pages/jl2285.aspx

Expert’s opinion

U.S. maintains a policy of control over citizens’ revenues. Nowadays we observe a process of construction of a worldwide net, which is aimed at catching of American citizens’ open accounts in foreign countries.

It seems that there should be no concern about U.S. internal policy, but a reason to do this is obvious. Now U.S. is exercising control only over their citizens.

But even now IRS sends “chain letters” to people all over the world with proposals to give a report that they are not residents of the USA and so did not get any revenue which should be declared in the U.S.

And if you submit an appropriate request for obtaining Green Card or get a visa to the U.S. or have/had business with American partners – just be prepared.

IRS will consider you as the first "tax recruits" that should join the ranks of the U.S. taxpayers. 

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)