Taxpayers Face Big Challenges at FATCA's One-Year Mark

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June 30 — Taxpayers continue to wrestle with big questions a year after the Foreign Account Tax Compliance Act opened for business.

Acknowledging that the Internal Revenue Service is doing its best to implement a complex law, issues still remain as the reach of FATCA goes global, practitioners told Bloomberg BNA in a series of interviews.

The law—which was enacted in 2010 but didn't take active effect until July 1, 2014—requires foreign financial institutions to report their U.S.-owned accounts to the IRS or face, in some cases, a 30 percent withholding tax on their U.S.-source income.