The IRS keeps updating its list of foreign banks which are turning over the names of their US Account Holders. Under the terms of their agreement with the IRS & Treasury, banks are required to:
- Make a complete disclosure of their cross-border activities;
- Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
- Cooperate in treaty requests for account information;
- Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
- Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
These Banks, Financial Instructions and Foreign Financial Advisors have made substantial efforts to cooperate with the IRS investigation, including by:
- facilitating interviews that their Office with employees, including top level executives;
- voluntarily producing documents in response to the Office’s requests;
- providing, in response to a treaty request, unredacted client files for the U.S. taxpayer-clients who maintained accounts at their Banks or Financial Instruction; and
- committing to assist in responding to a treaty request that is expected to result in the production of un-redacted client files for U.S. taxpayer-clients who maintained accounts at these Banks and Financial Instructions and with these Foreign Financial Advisors.
- With roughly 151 Foreign Banks and Financial Advisors cooperating with the DOJ & IRS and
- FATCA requiring the entire world to report to the IRS
Read more at: Tax Times blog