The Foreign Account Tax Compliance Act (FATCA) 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.
If you would like more information about the FACTA, there is a section of Frequently Asked Questions about Joint FATCA on the Department of State website.
Please note that neither the U.S. Embassy in Quito nor the U.S. Consulate in Guayaquil can offer assistance to U.S. citizens in regards to tax questions. Please visit the IRS website for more information.