How Does the IRS Find Out About My Foreign Bank Accounts?
Under FATCA, your foreign bank identifies you as a U.S. person through due diligence procedures, then reports your account information to its local tax authority (under an Intergovernmental Agreement) or directly to the IRS. The IRS receives your name, address, TIN, account number, year-end balance, and gross interest or dividends paid. Banks that do not comply face a 30% withholding tax on U.S.-source payments.
- U.S. indicia screening: Banks search for U.S. birthplace, U.S. address, U.S. phone number, standing transfer instructions to a U.S. account, or a U.S. power of attorney
- Self-certification: You may be asked to complete a W-8BEN, W-9, or local equivalent confirming your tax residency
- Annual reporting: Banks report once per year, typically covering the prior calendar year
- GIIN registration: Each compliant bank receives a Global Intermediary Identification Number, searchable on the IRS FFI list
How the data flows to the IRS:
| IGA model | How it works |
| Model 1 (most countries) | Bank reports to the local tax authority, which exchanges with the IRS |
| Model 2 (fewer countries) | Bank reports directly to the IRS with local government consent |
| Non-IGA | Bank registers directly with the IRS and reports under its FFI agreement |
What your bank reports about you:
| Data element | Reported |
| Name, address, U.S. TIN | Yes |
| Account number | Yes |
| Year-end account balance | Yes |
| Gross interest, dividends, other income | Yes |
| Gross proceeds from sales (custodial accounts) | Yes |
Why this matters for your own filings:
The IRS can cross-reference FATCA data against your FBAR and Form 8938. If your bank reports an account that does not appear on your filings, it creates a mismatch flag. Filing both forms accurately and on time is the simplest way to avoid an inquiry.
If your bank asks for documentation you do not recognize, it is likely a FATCA compliance request. Providing the information promptly helps keep your account open.
Last updated on April 29, 2026
