The Internal Revenue Service has posted a new list of Frequently Asked Questions banks may have about the Foreign Account Tax Compliance Act FATCA became law in 2010. The law requires foreign banks to report information about Americans who hold bank accounts abroad. Under FATCA, foreign banks, insurers and investment funds must send the IRS information about Americans and U.S. permanent residents who hold more than $50, 000 in offshore accounts. Foreign banks must start complying with FATCA by July 1. However, they must register with the IRS and sign a participating agreement by May 5. The U.S. government introduced FATCA after the Swiss bank UBS AG admitted in 2009 that it helped Americans to evade taxes. UBS had to pay $780 million to settle the charges. FATCA is intended to combat tax evasion by people sujecy to U.S. income tax. But critics say the law harms individual privacy while driving up compliance costs for financial institutions. The FAQ covers 22 common
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