The US Internal Revenue Service (IRS) will start tracking Americans evading compliance with the Foreign Account Tax Compliance Act (FATCA) as of January 2016, according to Deputy Chairman of the US Financial Advisory & Audit Firm (USFAAF) Jim O’Neill.
He said this also includes Egyptians, Arabs, and other nationalities who carry US citizenship and reside outside the US. Penalties range from imprisonment to revoking nationalities, unless they settle their taxes by the next month, according to FATCA.
The FATCA stipulates that any person carrying a US passport living anywhere in the world who has the equivalent of $10,000 in their bank account on any day during the yearis subject to the income tax law.
The USFAAF recently opened an office in Cairo to acquaint Arabs who carry US citizenship or green cards with the FATCA, as well as tax dues after discounts set by the US government.
The IRS recently issued a warning to Americans living abroad, stressing that they must settle their tax status to avoid penalties and exposure to prison and revoking of nationalities.
It is estimated that there are over 8 million Americans living outside the US, who may be subject to penalties unless they settle their tax.
Numerous Egyptian banks previously signed the agreement to implement this law and some have already begun sending the data of their clients who hold US citizenship or green card to the IRS.