IRS Relaxes its Harsh Reporting Penalties for US FFIs

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The Internal Revenue Service in the US has relayed information to foreign financial institutions (FFIs) operating under the US that that they are not automatically required to close accounts of US citizens who have failed to provide their tax identification number (TIN) after the relevant regulations officially enter into force at the start of next year in January 2020.

The IRS has pledged to consult with the foreign country’s tax authority to agree on valid reasons why TINs could not be obtained, and what efforts must be made to ensure their timely payment instead.