With recent market weakness, I'm amazed that supposedly factual, informative and unbiased (cough cough) news television isn't pondering the markets recent weakness being at all tied to FACTA.
The Foreign Account Tax Compliance Act ("FATCA"), enacted in 2010, imposes a variety of requirements on foreign banks however foreign banks that do not report such information may be subject to a 30% withholding tax on payments they receive from U.S. sources. In order to avoid this withholding, beginning July 1, 2014, certain foreign banks will be required to report information to the IRS about U.S. account holders with accounts of $50,000 or more.
Let that sink in a moment. That's HUUUGE money we're talking about.
Beginning July 1st, there will be penalties for non-reporting so if you were big business with large corporate cash storage, or even a gas pipeline worker located in Saudi Arabia, would you shift your investments? Why not? The market's at all time new highs. Better to do it now.
