Will FATCA be repealed?

Posted on 19 February, 2017 by Orlando Gotay Since I have been closely following the unfolding—and somewhat constantly shifting tax policy of the Trump administration and the 115th Congress, I get asked often what will happen, if anything, to FATCA, the Foreign Account Tax Compliance Act. Recall FATCA has turned virtually every foreign country and bank into an agent of the IRS, reporting back to the US Treasury on the holdings of US “persons”. Along with a bunch of additional requirements, like the odious Foreign Bank Account Report, it presents a truly formidable fiscal challenge even for the ‘normal’ expat. Most countries folded and signed agreements with the US where they agree to share financial information of US persons, under clear threat of punishing withholding taxes of US sourced payments to people in those countries. Even Vatican City signed up. Some countries have taken their time, and there has been more or less some push-back. The interesting thing is that there was a promise in the Republican party platform to repeal FATCA. I have been a delegate to National Conventions, so I can tell you the language in these much fought over platforms has often ended up in the dustbin. But the Trump administration is anything but normal. Could they try to repeal FATCA? The first hurdle is that FATCA may not be as high as we could wish on the administration’s tax priorities. Well ahead is Obamacare repeal (remember it has plenty of tax components) plus the Trump “big … Continue reading