Tuesday, July 16th 2013 - 21:12 UTC

American offshore accounts in foreign banks with more than 50.000 dollars have to be reported

The US Treasury Department said it will postpone enforcement of a new law that cracks down on offshore tax avoidance by Americans by six months until July 1, 2014, giving foreign banks more time to determine how to comply.

The IRS will be the recipient of the FATCA law information

The Foreign Account Tax Compliance Act, or FATCA, requires foreign banks and other institutions to supply information to the U.S. Internal Revenue Service about Americans’ offshore accounts worth more than $50,000.

The law, approved by Congress in 2010, stipulates that foreign financial institutions that fail to comply can effectively be frozen out of U.S. capital markets.

Since the law was passed, foreign banks and other businesses have complained about the costs of FATCA and its scope, saying in some cases that it conflicts with home-country banking laws that shield account holder information.

To help banks in countries with legal issues, Treasury and the IRS have been working on agreements that will let the home-country governments of foreign banks act as information-disclosing intermediaries to deal with the IRS.

“We are providing an additional six months to complete agreements with countries and jurisdictions across the globe,” said Robert Stack, Treasury deputy assistant secretary for international tax affairs, in a statement.

The United States has finalized intergovernmental agreements for FATCA compliance with Germany, Spain, Norway, Switzerland, Ireland, Mexico, Denmark and the United Kingdom. Dozens more of these pacts are in negotiation.

A new registration website for banks to sign up with the IRS and ensure they are complying with FATCA is now set to open on Aug. 19, the US Treasury said in its statement. The portal had previously been scheduled to open this week.

6 comments Feed

Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.

1 Klingon (#) Jul 16th, 2013 - 09:51 pm Report abuse
Easy, set up multiple accounts with $49,000.00 in each.
Screw the IRS wanting to control the world.
2 lsolde (#) Jul 17th, 2013 - 10:45 am Report abuse
My thoughts exactly.
What about people, who are not US citizens, who have accounts in the USA.?
Is that their next target?
3 Captain Poppy (#) Jul 17th, 2013 - 12:34 pm Report abuse
If you have money in USA bank that is already reported to the IRS. However, it is unlikely that you are paying taxes here anyway.
4 DanyBerger (#) Jul 17th, 2013 - 01:53 pm Report abuse
Dear Sr/Madame
To whom concern
Internal Revenue Service

I would like to inform you that I know a couple of suspects here in Argentina that seems to avoid some tax to US government just posting all day in Mercopress.

The modus operandi seems to deposit little amounts in severals accounts.

I feel the strong obligation to communicate this as a good friend that I’m of Amexica.

Hoping the rule of law prevail I will be willing to provide any other information as you require.

Kind regards,

Yours praiseworthy servant
5 Captain Poppy (#) Jul 17th, 2013 - 01:57 pm Report abuse
They spy on us remember?, they already know this.
6 Klingon (#) Jul 17th, 2013 - 03:23 pm Report abuse
It is not spying, they are just backing up your data for you. ;)
7 Captain Poppy (#) Jul 17th, 2013 - 04:03 pm Report abuse
On earth we call that sarcasm

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!


Get Email News Reports!

Get our news right on your inbox.
Subscribe Now!