FATCA enforcement has been diﬃcult because the Internal Revenue Service relies on ________ for reporting purposes.

Question

Quizplus · Accepted Answer

FATCA requires foreign financial institutions to report on the foreign assets held by US taxpayers or held by foreign entities in which US taxpayers hold a substantial ownership interest. Therefore, the enforcement of FATCA heavily relies on intermediaries, such as banks, to report this information to the IRS. While personal income tax returns and employer/employee relationships may provide some relevant information, they are not direct reporting mechanisms for the purposes of FATCA. Foreign countries may also provide information, but their cooperation is not a guarantee and may require diplomatic efforts.

FATCA Enforcement Has Been Diﬃcult Because the Internal Revenue Service