On July 1st of this year, Title V of the Obama Administration’s HR Bill #2847, known as FATCA, goes into effect.
What will this mean to me, an average citizen, age 62… living on retirement and social security. I have heard so many diffent stories. What do I do? How do I prepare? Is there anyway that I can keep what little money I have safe?? Help!
FATCA stands for Foreign Account Tax Compliance Act. It requires offshore financial institutions — banks, investment houses, insurers, etc. — to report to the IRS most U.S. citizen accounts held overseas. If you are a U.S. resident and all of your money is in U.S. holding companies (banks, etc.), you will not be affected by FATCA.
Keeping your U.S. money safe is another matter. I cannot give advice specific to your situation for legal reasons and because you have not provided enough information. However, I have often written in generic terms how to protect your wealth.