Hello, I’m CPA Maximiliano Mira Salas. In this new edition of our weekly newsletter, we address a central topic in international taxation: the Foreign Account Tax Compliance Act (FATCA).

This content was part of our exclusive FINANCERS Webinar, where we discussed the implications of FATCA for corporate and wealth structures of Latin Americans with operations in the U.S.

🧾 Who Is Affected by FATCA?

1. Accounts subject to reporting under FATCA IGA 1: Argentine financial institutions must identify and report to ARCA, for transmission to the IRS, financial accounts held by U.S. persons or entities. By reciprocity, the U.S. will provide ARCA with information on accounts of Argentine residents in the U.S.—and here lies the key point:

Financial accounts in U.S. institutions (FFIs) held by individuals resident in Argentina.
Financial accounts of entities (companies, trusts, etc.) controlled by individuals resident in Argentina.

2. Types of income reported: Under IGA 1, the scope of information that the U.S. provides to Argentina is limited. Only U.S.-sourced interest and dividends exceeding USD 10 in a calendar year are reported. Account balances and other income, such as capital gains or royalties, are not included.

3. Important exclusions: U.S.-formed LLCs, Partnerships, and Corporations are not included, since they are not disregarded entities under U.S. law. Therefore, bank accounts opened in the name of U.S. entities with Argentine beneficiaries are not automatically reported.

At FINANCERS, we analyze FATCA application in each country according to the IGA in force with the U.S. and the local regulations. If you reside in another country and are unsure of its scope in your jurisdiction, you can consult with us.

🔍 Key Technical Aspects

1. Main forms:

Form 8938: Statement of Specified Foreign Financial Assets (for individuals).
Form W-9 / W-8BEN-E: Beneficial owner certification.
CRS/IGA Reports: coordination with intergovernmental agreements signed by Latin American countries.

2. Penalties for non-compliance:

Fines up to USD 10,000 for initial failure to file, with increases for continued non-compliance.
Possible 30% withholding on U.S.-sourced payments in undeclared accounts.

3. Interaction with international treaties:

IGA agreements allow many Latin American countries to exchange information directly with the IRS.
It is crucial to verify whether your country of residence has an active IGA and how it interacts with local financial privacy rules.

⚠️ Frequent Mistakes in Practice

Not reporting financial assets under the assumption that the foreign bank “does not report.”
Confusing FATCA with FBAR (Report of Foreign Bank and Financial Accounts), which are separate obligations.
Using opaque structures without economic substance to conceal ultimate beneficiaries.

📌 Legal and Accounting Disclaimer

This content is for informational purposes only and does not constitute legal or tax advice. Each case must be evaluated individually by a licensed professional, considering the taxpayer’s country of residence, global assets, and applicable international treaties.

At FINANCERS, we assist Latin American companies, freelancers, and investors in the U.S. in assessing FATCA applicability, preparing supporting documentation, coordinating between U.S. law and local regulations, and reducing the risk of penalties.

Do you want to operate in the U.S. with accounting and tax security? Book a meeting to learn more about our services. Monthly webinars are just one of the exclusive tools we make available to our clients.

CPA Maximiliano Mira Salas
International Tax Advisor | FINANCERS 🇦🇷🇺🇸