Breaking News: IRS Enhances Identity Authentication Process for FATCA Registration

The Internal Revenue Service has announced enhancements to the identity authentication process for financial institutions registering under the Foreign Account Tax Compliance Act (FATCA).

1. Effective July 14, taxpayers must sign in or register with the IRS credential service providers, Login.gov or ID.me, to access the FATCA registration system.
2. FATCA mandates U.S. taxpayers with financial assets outside the U.S. and certain foreign financial institutions to report assets and financial accounts to the IRS.
3. Taxpayers with existing Login.gov or ID.me profiles can sign in to the FATCA Registration System using matching emails.
4. Taxpayers without existing profiles must create one to access the system, meeting NIST digital identity guidelines.
5. To create a new profile, taxpayers verify an email, create a password, and set up multi-factor authentication for security.

For assistance with Login.gov, visit the Login.gov help center. For help with ID.me, visit the Verifying for the Internal Revenue Service – ID.me Help Site.

What do you think?

• Do you believe the new authentication process is necessary?
• Should the IRS provide additional resources for taxpayers navigating the system?
• Is FATCA an effective tool for combating tax evasion?