Adrian Johnson
TLDR:
- IRS is requiring users to authenticate their identities using Login.gov or ID.me for the FATCA website.
- FATCA requires U.S. taxpayers to report financial assets held outside the country to the IRS to deter tax evasion.
IRS Adds User Authentication to FATCA Site
The Internal Revenue Service has implemented a new security measure on the Foreign Account Tax Compliance Act (FATCA) website, where taxpayers and financial institutions are now required to authenticate their identities when signing in or registering. This extra security measure, effective as of July 14, mandates that users sign in or register using either Login.gov or ID.me to access the FATCA registration system.
FATCA, part of a law dating back to 2010, necessitates most U.S. taxpayers holding financial assets outside the country to report them to the IRS. This reporting is aimed at deterring tax evasion by Americans with investments in offshore bank accounts. Under FATCA, certain U.S. taxpayers must disclose financial assets and foreign financial institutions have to report information about certain financial accounts held by U.S. taxpayers.
The addition of multi-factor user authentication is compliant with the National Institute of Standards and Technology digital identity guidelines. Taxpayers who already have a Login.gov or ID.me profile can sign in to the FATCA Registration System, provided their email matches that of the responsible officer on the FATCA registration. Those without existing profiles need to create one to access the system.
To create a new profile, users must verify their email address, create a password, and set up multi-factor authentication for security. Both Login.gov and ID.me have help desks to assist users facing difficulties using the systems.
Overall, this new user authentication requirement enhances the security of the FATCA website and aims to ensure the accuracy and integrity of the financial asset reporting process.
