FATCA, as it's known, was signed into law in 2010 in an effort to 'clamp down' on tax evasion. That's the official story.
There's no shortage of statistics out there which say there's anywhere from $21 to $32 TRILLION 'hidden in offshore accounts.'
I always retain a healthy skepticism of these numbers.
I mean, that's 30% of the entire WORLD GDP. It's more than TEN TIMES the amount that Google, Apple, and all the big tech companies are hoarding in cash (also overseas).
It's more than SEVEN TIMES the size of the US Federal Reserve's balance sheet. And it's TWO THOUSAND TIMES the current M2 money supply of US dollars.
These estimates are seriously unrealistic, and I'm throwing the bullshit flag.
Regardless, FATCA was passed, and the claim was there would be no more tax evasion as a result due to the two main provisions in the law.
The first provision requires all US taxpayers to make yet another disclosure to the IRS via form 8938 of certain foreign financial assets and foreign financial accounts they may be holding overseas.