Treasury hammers out tax-evasion agreement with Japan, Switzerland
The Treasury had previously reached an understanding with France, Germany, Italy, Spain and the United Kingdom on intergovernmental information-sharing under the law.
Under the new agreements, foreign financial institutions in those nations would deal directly with the U.S. government in providing information on American accountholders. Governments would interact if the United States requested specific information on certain accounts.
Under the law, foreign banks are required to hand over information about Americans’ accounts to the IRS, and face a 30 percent withholding fee on certain payments received from the United States if they don’t comply.
The regulations also stretch out the reporting requirements for the law, which is scheduled to go into effect in 2013.
Under the new rules, banks would have to report the identities, account balances and other information on U.S. accounts in 2014 and 2015.
By 2017, banks would have to supply full reports, including income associated with U.S. accounts and gross proceeds from broker transactions.
The government is still finalizing the regulations for FATCA, and Treasury officials expect to have them finished by this fall.