Foreign financial entities affected by the FATCA shall periodically report to the American IRS information regarding:
- US Accounts (accounts opened in the name or on behalf of one or more US Persons or by a foreign company owned by US Persons);
- Recalcitrant Accounts (account holders or beneficial owners whose recognition as US Person is not possible);
- Payments subject to tax withholdings made to Recalcitrant Accounts and non-participating foreign financial entities.
Portugal is subject to Model 1 of the Intergovernmental Agreement, so financial institutions will have to send to the Tax Authority the necessary information on the US Persons accounts, required by the FATCA, in XML format.