Do not make this common mistake done by small business owners.
A common mistake small business owners make is to mix business and personal funds. It’s important to have a separate Bank and Credit Card account for your business. This will make things a lot easier when it comes to managing your books and getting things organized for tax time. If you are ever audited by the IRS you want to make sure that you can produce documents that support legitimate business expenses.
How to get FATCA Compliance
You must do the following steps to be compliant with FATCA.
- A simple declaration that mentions your PAN details.
- The country of your birth.
- The country of your current residence.
- Your nationality.
- Your current occupation.
- Your annual income.
- And whether or not you are a politically exposed individual or not.
- For individuals who have paid taxes in any part of India, they need to provide a tax identification number.
What should be reported
The following are certain conditions in which an NRI needs to report their earnings as per FATCA to the IRS. Financial institutions also need to report the same to the IRS as well.
- If the total value of the income is less than $50,000 at the end of the fiscal year, there is no need to report the same. However, if the amount has exceeded $75,000 at any point in the year, the amount must be reported to the IRS.
- The above threshold is for individuals staying in the USA. For the ones who stay outside of the USA, the threshold values are even higher.
- The threshold levels differ for single tax filers and married tax filers as well.
- This declaration of income includes mutual funds and other financial accounts.