Newspapers in the Dominican Republic have reported on the requirement for Dominican financial institutions to report accounts held by U.S. citizens. Below please find information released by the IRS regarding this new reporting requirement. For general information about tax requirements for U.S. citizens living abroad, please see the attached fact sheet from the IRS.
The Foreign Account Tax Compliance Act (FATCA), enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act, is an important development in U.S. efforts to combat tax evasion by U.S. persons holding investments in offshore accounts.
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS. In addition, FATCA will require foreign financial institutions to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
For more information, please visit the IRS website at http://www.irs.gov/businesses/corporations/article/0,,id=236664,00.html.
U.S. citizens traveling and residing abroad should enroll in the Smart Travelers Enrollment Program (STEP) at the following website: https://travelregistration.state.gov. U.S. citizens without internet access may enroll directly at the U.S. Embassy or Consulate at their destination. By enrolling, U.S. citizens make it easier for the Embassy to contact them in case of emergency.
Updated information on travel and security may be obtained from the Department of State by calling 1-888-407-4747 toll-free in the United States and Canada or, for callers outside the United States and Canada, a regular toll line at 1-202-501-4444. For further information, please consult the Worldwide Caution and other consular information, including Country Specific Information, for specific countries. These products and the latest international travel information for U.S. citizens are available on the Bureau of Consular Affairs Internet website.
For any emergencies involving American citizens in the Dominican Republic, please contact the American Citizens Services (ACS) Unit of the U.S. Embassy. The Consular Section Embassy is located at the corner of Cesar Nicolas Penson Street and Máximo Gómez Avenue, Santo Domingo, D.R.; telephone 809-731-4294; after hours emergency telephone 809-221-2171; ACS unit fax 809-689-6142; e-mail email@example.com.