“I had been living in Switzerland for ten years, and then out of the blue I got a letter from my bank, saying that since I am an American citizen I had to file some extra paperwork,” Jonathan Weiss tells The Local. “Two weeks later my bank account was frozen.”
Weiss was born in the US, but has lived abroad since age ten, in both Asia and Europe.
“I was just living in Switzerland, working there, minding my own business,” Weiss recalls. “And then I was caught up this net. I had no idea what to do.”
That was his first encounter with the long arm of US tax law – FATCA.
If you’re an American living abroad, chances are you’ve heard of FATCA. And if you haven’t, you probably should have. Or there may be serious consequences.
“FATCA requires foreign banks to report information to the IRS regarding all financial accounts held by American clients,” Ines Zemelman, a tax agent specializing in expatriate taxes, tells The Local.
“The age of financial privacy is over.”
Over 100 nations have already agreed to provide the IRS with such information, including Germany, France, Spain, Italy, Switzerland, Austria, Sweden, Denmark, and Norway
full article at source: http://www.thelocal.de/20150127/fatca-age-of-financial-privacy-is-over-taxes-expats-tlccu