Since the 30th of September, the IRS has started to send tax related information to the authorities of 34 countries, regarding US based bank accounts of their citizens, following the FATCA implementation.
Thirty four countries’ authorities are eligible to receive bank accounts information of their citizens who maintain a bank account in the US, for taxation purposes. This follows the intergovernmental agreements between the US and the 34 jurisdictions, collaborating under the US Foreign Account Tax Compliance Act IGAs.
The long list of countries that have signed intergovernmental agreements with the US includes Cyprus, Hong Kong, Mauritius, Bahamas, Moldova (pictured) and the UK.
“Meeting the 30th of September deadline is a major milestone in IRS efforts to combat offshore tax evasion through FATCA and the intergovernmental agreements”.
– John Koskinen, IRS Commissioner.
In order to keep up with this deadline, it had been essential for the IRS to develop the information system infrastructure, procedures, and data use in a successful and timely manner. IRS, meanwhile, has stated that it safeguards taxpayer data, while facilitating reciprocal automatic exchange of tax information with certain foreign jurisdiction tax administrators, as specified under the intergovernmental agreements (IGAs) implementing FATCA.