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Chapter 4 preparation refers to the compliance documentation required under the Foreign Account Tax Compliance Act (FATCA) to report foreign financial accounts.

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Entities such as foreign financial institutions (FFIs) and certain non-financial foreign entities (NFFEs) are required to file chapter 4 preparation of, as well as U.S. taxpayers with foreign financial accounts.

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To fill out chapter 4 preparation, the filer must complete IRS Form 8938 or FATCA-related forms online, providing details of foreign accounts, ownership, and income.

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The purpose of chapter 4 preparation is to ensure compliance with FATCA regulations, preventing tax evasion by U.S. taxpayers holding assets outside the country.

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Information reported must include the filer's personal details, foreign account numbers, balances, and types of accounts, as well as any income generated from those accounts.