Who is impacted by FATCA?
FATCA impacts holders of accounts that are outside the United States, and it requires PayPal to collect tax documents or certifications from account holders stating whether or not they are U.S. persons. This includes, but is not limited to, business entities, and some individuals that open accounts outside the United States.
Pursuant to FATCA, PayPal also reviews existing account holder records to ensure that the account holder’s status (as a U.S. Person or a non-U.S. Person) is properly documented for FATCA purposes. In some cases, as a result of this review PayPal may request additional documentation from the account holder.
Situations where additional documentation may be required include:
- If data previously collected about an account holder does not match the information provided in an account holder’s tax documentation / self-certification
- If an account holder claims they are a non-US person but PayPal finds that US identifiers exist in the customer’s information.