FATCA (Foreign Account Tax Compliance Act)
TaxGlossary term
Definition
A federal law requiring US citizens and residents to report foreign financial accounts and assets exceeding certain thresholds to the IRS. Foreign financial institutions must also report accounts held by US taxpayers to comply with the law.
Related terms
- Tax AuditA review of your tax return by the IRS to verify that income and deductions are reported accurately. Audits can be conducted by mail or in person and may result in additional taxes owed, penalties, or a refund.
- Gross IncomeTotal income earned before taxes and deductions. For individuals, it includes wages, tips, investment income, and other earnings.
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