The Ugly Face of FACTA: Why Life for Overseas Americans Keeps Getting Harder
In 2011, THE IRS Introduced the Foreign Account Compliance Act, or FACTA. Designed to “minimize tax cheats”, FACTA is making banking- and life in general- painfully difficult for millions of American expats.
Under FACTA, all 8 million or so Americans living and working overseas must report all non-US financial accounts to the US government.
The ambiguities and complexities of reporting under FACTA mean that many expats, most of whom are not wealthy, spend thousands of dollars every year to ensure that they are in compliance.