The IRS instituted the above in order to obtain information of US citizens who hold bank accounts abroad. Ireland signed up to FATCA in 2012, and since 2015, the Irish Revenue Commissioners have been collating information from banks and other financial institutions about accounts, investment bonds, life policies with cash values, pensions etc. held by US citizens in Ireland. This information is passed onto the IRS thereafter .

The financial institutions may write to US citizens directly requesting them to confirm their citizenship, and their US Social Security Numbers. The IRS will be expected to match up these details to their existing records of Foreign Bank and Financial Account Reports (FBAR’s), and may enquire further if the details don’t match .

FBAR’s are a mandatory filing requirement where a US person has a financial interest in, or signature authority over, any Foreign Bank or Financial Accounts and the aggregate maximum values exceed US$10,000 in a calendar year.