Do you hold a Foreign Financial Account or have financial stake in any non-US business entity?  

If yes, you will need to be FATCA compliant.  

FATCA – Foreign Account Tax Compliance Act is a mandatory requirement for all US entities, businesses or individuals who hold Foreign Financial Accounts or have financial stake in any non-US company. It is also applicable for US citizens who have a substantial stake in foreign companies or entities. 

FATCA is done through bilateral inter-government agreements (IGAs) which vary from region to region and can be quite complex to handle. GuruTaxPro has the comprehensive understanding of the FATCA rules and regulations to help you with FATCA compliance, and we simplify the process for you.   

Specified domestic entity reporting:   

Some certain domestic corporations, partnerships, and trusts that are formed or instituted and are availed of, for the purpose of holding, directly or indirectly, specified foreign financial assets need to file Form 8938 if the total value of these assets exceeds $75,000 at any point of time during the tax year or $50,000 on the last day of the tax year.  

The most important reason to frame FATCA is to prevent tax evasion by entities.