US rethinks offshore tax evasion reporting rules

Article reports that the US responded to pressure from foreign governments and financial institutions in January 2012 over its crackdown on offshore tax evasion by proposing a significant change in how it will implement stringent reporting rules for overseas banks.

The new approach to the Foreign Account Tax Compliance Act is being explored in response to concerns that forcing overseas institutions to report details of their US clients directly to the Internal Revenue Service would breach privacy laws.

BBA: Press Release, 15.8.11: BBA submission to the US Treasury and IRS on the US Foreign Account Tax Compliance Act (FATCA) http://www.bba.org.uk/media/article/bba-submission-to-the-us-treasury-and-irs-on-the-us-foreign-account-tax-com

IRS: Businesses; International Businesses: Foreign Account Tax Compliance Act (FATCA) http://www.irs.gov/businesses/corporations/article/0,,id=236667,00.html

Wikipedia: Foreign Account Tax Compliance Act http://en.wikipedia.org/wiki/Foreign_Account_Tax_Compliance_Act

MADB: Foreign Account Tax Compliance Act (FATCA) http://madb.europa.eu/madb_barriers/barriers_details.htm?barrier_id=115416&version=1

ESO: Background information: Taxation: EU/US Dialogue on the Foreign Account Tax Compliance Act http://www.europeansources.info/record/press-release-taxation-eu-us-dialogue-on-the-foreign-account-tax-compliance-act/

---