If you have Unreported Income From Foreign Banks, contact the Lawyers at Marini & Associates, P.A. for a FREE Consultation at www.TaxAid.usorwww.TaxLaw.msor Toll Freeat 888-8TaxAid (888 882-9243).
Source:
WASHINGTON – The U.S. Department of the Treasury announced
today that it has signed a bilateral agreement with the United Kingdom to
implement the information reporting and withholding tax provisions commonly
known as the Foreign Account Tax Compliance Act (FATCA).
Enacted by Congress in
2010, these provisions target non-compliance by U.S. taxpayers using foreign
accounts. The bilateral agreement signed this week is based on the model
published in July of this year and developed in consultation with France,
Germany, Italy, Spain, and the United Kingdom and marks an important step in
establishing a common approach to combatting tax evasion based on the automatic
exchange of information.
These provisions target noncompliance by U.S. taxpayers using foreign accounts. Signing the bilateral agreement sets forth a way to tackle tax evasion based on the automatic exchange of information.
“Today’s announcement marks a significant step
forward in our efforts to work collaboratively to combat offshore tax evasion,”
said Treasury Assistant Secretary for Tax Policy Mark Mazur.
“We are pleased
that the United Kingdom, one of our closest allies, is the first jurisdiction to
sign a bilateral agreement with us and we look forward to quickly concluding
agreements based on this model with other jurisdictions.”
The Treasury Department is in communication with
several other governments who have expressed interest in concluding a similar
bilateral agreement to implement FATCA and expects to sign additional bilateral
agreements in the near future.
The Treasury Department and the IRS also are
continuing to work towards finalizing the regulations implementing FATCA in the
near term.
If you have Unreported Income From Foreign Banks, contact the Lawyers at Marini & Associates, P.A. for a FREE Consultation at www.TaxAid.usorwww.TaxLaw.msor Toll Freeat 888-8TaxAid (888 882-9243).
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US Treasury
David Treitel • David Treitel, Director of London based American Tax Returns Ltd, notes that the agreement:
ReplyDelete1. Requires every tax and financial adviser in the UK with clients who happen to be American citizens or green card holders to think much more seriously about whether all of the complicated forms that the IRS already requires are being filed, given that UK financial institutions will be providing so much more data about their clients to the tax authorities, and
2. Inevitably will make several UK financial institutions scared of having any US persons as account holders because of extra compliance costs as well as the risk of recommending banking or investment products that are not “US tax friendly”.