Americans must pay taxes on bank accounts in Israel
United States citizens who have accounts or financial assets in Israel soon will have even more incentive than previously to disclose them to the Internal Revenue Service (IRS).
The Foreign Account Tax Compliance Act (FATCA), which takes effect July 1 in Israel, is meant to combat tax evasion and fraud by requiring foreign banks to report to the IRS information about accounts owned by Americans exceeding $50,000. (Technically, Americans already have had to report worldwide accounts if the aggregate value is more than $10,000.)
This has been four years in the making, since the law passed in March 2010. The U.S. Department of the Treasury already has negotiated FATCA agreements with more than 50 countries.
The impact in Israel could be significant, as the act also applies to U.S. citizens living abroad. There are roughly 150,000 to 200,000 Americans residing in Israel with accounts there, according to Dave Wolf, tax partner of Hacohen Wolf Law Offices based in New York, Jerusalem and Tel Aviv.
http://www.jewishjournal.com/nation/article/americans_must_pay_taxes_on_bank_accounts_in_israel
