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What is chapter 4 long term?

Chapter 4 long term refers to a classification under the U.S. Internal Revenue Service (IRS) regulations that entails specific tax reporting requirements for foreign financial institutions and certain non-financial foreign entities to comply with the Foreign Account Tax Compliance Act (FATCA).

Who is required to file chapter 4 long term?

Entities required to file chapter 4 long term include foreign financial institutions (FFIs) and certain non-financial foreign entities (NFFEs) that have U.S. account holders or substantial U.S. owners.

How to fill out chapter 4 long term?

To fill out chapter 4 long term, entities must complete the IRS Form 8966, providing detailed information about account holders, including their U.S. taxpayer identification numbers and account balances.

What is the purpose of chapter 4 long term?

The purpose of chapter 4 long term is to prevent tax evasion by U.S. persons holding assets outside the United States, ensuring that foreign entities report information about U.S. account holders to the IRS.

What information must be reported on chapter 4 long term?

Information that must be reported includes the identifier of the account holders, account balances, and the financial institution's compliance status with FATCA.