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What are the differences between FATCA and CRS?

I have been learning about FATCA (Foreign Account Tax Compliance Act) and CRS (Common Standard on Reporting and Due Diligence for Financial Account Information). What impact do they have on high net worth individuals?

  • Daniel Lu CPA
    August 24, 2018

    On a high-level overview, FATCA and CRS are both a reporting requirement of financial information. FATCA is reporting by the IRS of the United States, while CRS was developed and adopted by the rest of the world, mainly Europe. FATCA reporting is only being used by the IRS while CRS is a means of exchange between multiple countries. The reporting method and guidance are not the same. The impact is a matter of reporting. Specifically, the impact under FATCA is information being used by the IRS. For CRS, the information is being exchanged by multiple countries.