Reporting requirements for Americans

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a federal law that was introduced to counteract tax evasion abroad. It requires all foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by US taxpayers, or by foreign entities in which US taxpayers hold a substantial ownership interest. Reporting such information requires detailed and regular administrative updates.

What is FATCA Form 8938?

FATCA also requires US citizens and residents who have foreign bank accounts or other foreign assets to disclose these on their US tax returns, using Form 8938. Failure to report such assets can result in significant penalties.

What is FBAR and FinCEN Form 114?

The Report of Foreign Bank and Financial Accounts (FBAR) is a separate reporting requirement not filed with the IRS. It is a disclosure form (not a tax form) and must be filed directly with the office of Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of the Treasury, using FinCEN Form 114.

Do I have to file both?

Dependent on your circumstances, you may need to file both forms. To check the requirements and relevant reporting thresholds, visit the IRS’s page on Comparison of Form 8938 and FBAR requirements.

Glossary of banking terms

• Banque de France – the country’s central bank

• ACPR – (Autorité de contrôle prudentiel et de résolution), the financial regulator managed by the Banque de France

• un compte courant – a current account

• un compte d'épargne – a savings account

• RIB – (relevé d'identité bancaire), a document showing your account number, IBAN, BIC, etc, used to make a transfer, pay a bill or set up a direct debit

• IBAN – international bank account number

• BIC – bank identifier code

• DAB – (distributeur automatique de billet), an ATM

• CB – (carte bancaire), a debit (débit) or credit (crédit) card

• un chéquier / carnet de chèque – a checkbook

• un prélèvement – a direct debit

• un virement – a standing order

• un découvert – overdraft

• les frais – fees

• l’argent liquide or espèces – cash

• un bénéficiaire – payee/recipient

• encaisser un chèque – to deposit a cheque (can be done in person with a bank employee or via a machine, usually found next to an ATM inside a bank

• compte joint – a joint account

• remboursement de prêt – loan or mortgage payment

• faire opposition – to report and cancel a lost or stolen bank card

• un (e) conseiller (ière) – advisor