1. What is FATCA?

FATCA is the Foreign Account Tax Compliance Act enacted into law on March 18, 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. ... read more »


W8-BEN— Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding; is used by foreign individuals to establish that they are not a U.S. taxpayer.

W8-BEN-E— Certificate of Status of Beneficial Owner for United States Tax Withholding (entities); is used by foreign entities to establish that they are not a U.S. taxpayer.

W8-IMY— Certificate of Foreign Intermediary, Foreign ... read more »

FATCA Glossary

Authorized Third Party (ATP)— Individual authorized by the Responsible Officer (RO) to perform registration duties, including signing the FFI agreement.

Employer Identification Number (EIN)— A unique number assigned to business entities by the IRS and used for the purpose of tax reporting.

Fixed, Determinable, Annual or Periodical Income (FDAP)— All income except gains from the sale of personal property and income excluded from gross income, such as tax-exempt municipal bonds ... read more »

FATCA Key Requirements

The Foreign Account Tax Compliance Act (FATCA ) is targeted at getting financial information about individuals currently living in the United States and abroad who should be paying taxes to the U.S. government. FATCA requires that foreign financial institutions (FFIs) and U.S. withholding agents collect tax data from their account holders tax data ... read more »

FATCA: 4 Step Process

The overall FATCA process is complex, but it can be reduced to three distinct phases. First, identify which accounts are taxable under U.S. law. Next, report income and asset information to the IRS in the correct format. Finally, withhold 30% of payments from recalcitrant and non-participating accounts and remit appropriate payments to the IRS ... read more »

Model I & Model II IGAs

FATCA intergovernmental agreements are designed to make it easier for foreign financial institutions to comply with FATCA. The U.S. Treasury Department released a draft of a Model I IGA in July of 2012. A draft of a Model II IGA followed in November of the same year ... read more »

Convey provides tax information reporting services and software to businesses to make IRS compliance clear and uncomplicated. U.S. federal tax advice contained in this web site is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document. (iii) The taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

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