Foreign Account Tax Compliance Act (FATCA) – April 15th is Tax day!

This message informs U.S. citizens about FATCA and provides information for tax payers while living overseas.

The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to improve tax compliance involving foreign financial assets and offshore accounts. Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season. In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest. The IRS has information for taxpayers on its webpage about FATCA at:http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA)

Residing abroad does not exempt U.S. citizens or Legal Permanent Residents from their U.S. tax obligations. While you may not owe any U.S. income tax while you are living abroad, you must still file a return annually with the IRS. This is the case even if you move all of your assets to a foreign country; you may still be taxed on income regardless of where it is earned. For more information please review the IRS’s tax information for residents and U.S. citizens living abroad. Everyone can e-file, and everyone can e-file Individual tax returns for free.  Visit www.irs.gov for more information.

The Consular Section of the U.S. Embassy in Managua does not have an IRS representative and cannot provide advice or answer questions concerning FATCA or tax obligations. This link explains how taxpayers can contact the IRS for assistance http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1

Please click here for a list of U.S. tax preparers in Nicaragua. Additional information for tax payers abroad can be found on our website.

The U.S. Embassy in Managua is located at Km 5 ½ C. Sur Managua, Nicaragua.  The U.S. Embassy in Managua can be reached during regular business hours at 011-505-2252-7100.  The American Citizen Services unit is also available by email at ACS.Managua@state.gov 

General information regarding consular services is available by calling 011-505-2252-7104.  Routine services such as passports and notarial services require an appointment; you can schedule an appointment online. In case of an emergency please call 2252-7100.

For the latest security information, Americans traveling abroad should regularly monitor the U.S. Embassy’s website and the U.S. Department of State’s Bureau of Consular Affairs’ website, where the current Worldwide Caution, Travel Warnings, Travel Alerts, and Country Specific Information can be found. The U.S. Embassy also encourages U.S. citizens to review “A Safe Trip Abroad“, which includes valuable security information for those both living and traveling abroad.  In addition to information on the Internet, travelers may obtain up-to-date information on security conditions by calling 1-888-407-4747 toll-free in the U.S. and Canada, or outside the U.S. and Canada on a regular toll line at 1-202-501-4444.