What does the "FATCA Filing Requirement" box on Form 1099 mean?
If you received a 1099 Form at the beginning of the year, you might have noticed a FATCA filing requirement box. It may be checked or left blank, which can raise questions. What does this box mean? Should you check it yourself? Do you need to file any additional forms because of it?
Below, we explain what the FATCA filing requirement is and whether you need to take any action in response.
What is FATCA?
FATCA stands for Foreign Account Tax Compliance Act. It was passed into law in 2010 to ensure that US taxpayers who hold substantial assets overseas pay taxes on those assets.
How would the Internal Revenue Service (IRS) know if someone holds assets abroad? Under FATCA, foreign financial institutions are required to report accounts and assets held by individuals or businesses with US tax obligations.
Because many countries have agreed to comply with FATCA, the likelihood of the IRS being unaware of your foreign assets is very low.
Also read. FATCA reporting & filing requirements
What does the FATCA requirement checkbox mean?
It means the institution that sent you the 1099 Form is aware of FATCA requirements and intends to comply.
Some forms that may include the FATCA filing requirement checkbox, depending on the situation, are Form 1099-MISC, Form 1099-INT, and Form 1099-B.
The FATCA filing requirement box may be checked with a check mark or left blank.
What does it mean if the FATCA filing requirement box is checked?
If the FATCA filing requirement box is checked, it simply indicates that the form issuer has determined that reporting under FATCA applies to them.
This is an internal matter for the institution and does not require any action from you. Whether the box is checked or not does not impact your tax filing or how you report the income on the form.
Do I need to check the FATCA requirement box?
No, you do not need to check the FATCA filing requirement box. This box is completed by the institution issuing the 1099 Form, not by you.
Who needs to worry about the FATCA checkbox?
The FATCA box being checked only relates to the issuer's obligation, not the recipient's.
Whether you need to file FATCA-related forms like Form 8938 depends on the total value of your foreign financial assets and IRS thresholds, not on whether the FATCA box is checked on a 1099.
Is FATCA different from FBAR?
Yes, it is.
FBAR (Foreign Bank Account Report) must be filed by US citizens or resident aliens with one or more foreign bank accounts that total over $10,000.
FATCA reporting thresholds vary depending on your filing status and whether you live abroad.
For example, single filers living in the US must file Form 8938 if they hold over $50,000 in foreign assets on the last day of the year, or $75,000 at any time during the year. Higher thresholds apply to joint filers and those living overseas.
FATCA filing does not depend on whether your 1099 shows FATCA filing requirement box checked or not.
Other key differences between FATCA and FBAR:
- FBAR usually deals with bank accounts, while FATCA includes all foreign assets.
- You file an FBAR report with FinCEN (Financial Crimes Reporting Network), using FinCEN Form 114; but to comply with FATCA you need to file Form 8938 with the IRS.
- FBAR needs to be filed before April 15th for the previous tax year, while FATCA needs to be filed together with your annual US tax return.
We’ve covered the main differences here; however, you can get your teeth into the finer details by using a handy comparison table from the IRS.
Not sure if FATCA requirements apply to you?
Our team of tax professionals is here to help you figure out whether you need to file FATCA. If you do, we will handle everything for you — preparing and filing your US tax return, FATCA, or FBAR accurately and on time.
No need to stress over complex forms or deadlines. If you want peace of mind knowing it’s done right, reach out to Taxes for Expats (TFX) — we are ready to guide you every step of the way.
FAQ
No, not necessarily. Whether you need to file Form 8938 depends on the total value of your foreign financial assets and whether you meet the IRS thresholds, not on whether the FATCA box is checked on a 1099.
Yes, all US citizens, resident aliens, and nonresident aliens who elect to be treated as residents for tax purposes are subject to FATCA if their specified foreign financial assets exceed IRS thresholds.
This guide is for info purposes, not legal advice. Always consult a tax pro for your specific case.