Two years ago on 30.6.14 an agreement was signed the purpose of which was to implement FATCA between Israel and the United States. The agreement obligates the banks and additional financial institutions in Israel to transfer information as to accounts, financial assets and income of United States citizens with bank accounts in Israel and Israeli citizens with green cards to the Tax Authority in Israel and from there to the American Internal Revenue Service (IRS).

The Foreign Account Tax Compliance Act – FACTA – is a law the objective of which is to prevent evasion of payment of tax by American residents who administer financial accounts outside of the United States. It was legislated in 2010 and determines that financial entities that are not Americans shall carry out examinations of accounts administered by them, identify the American account holders and transfer the relevant information to the authorities in the United States.

Pursuant to the schedule detailed in the agreement, the financial information should be transferred from the financial entities and the banks to the Israeli Tax Authority by September 20, 2016. However, after public pressure and numerous petitions against this action, the Tax Authority decided to grant an extension of ten days for transfer of the information.

Following implementation of the agreement many business people who in the past have abstained from filing reports to the American tax authorities would be obligated to do so by the very transfer of the information. Our office has an American Reports Department with seniority and considerable experience in filing reports to the American tax authorities and recently the department has been reinforced by a senior manager who is knowledgeable in the mysteries of the tax laws in Israel and the United States.

American citizens residing in Israel who have not filed F-BAR reports and reports to the IRS are required to do so urgently. We will be happy to be at your service and help in filing the reports and much more.