Full Reciprocity Under FATCA Is a Work in Progress, IRS Official Says
ORLANDO, Fla.–Although the United States has committed to achieving reciprocity regarding the exchange of financial transaction information under the Foreign Account Tax Compliance Act, domestic banks are not subject to the same reporting requirements as are their foreign counterparts, an Internal Revenue Service official said Jan. 25.
According to Ted Setzer, manager of IRS’s Large Business & International Division, although existing requirements on U.S. banks will provide other governments with similar information required of foreign banks under FATCA, “clearly existing U.S. rules don’t require U.S. financial institutions to provide the exact same information that a foreign institution has to under FATCA.”“How we get to full reciprocity and how long it takes is something we’ll have to be working on.”Ted Setzer, LB&I Division
Setzer made his comments during a session at the 2013 midyear meeting of the American Bar Association Section of Taxation on recently released implementing FATCA. [snip]
Responding to a question about reciprocity, Setzer said the United States had committed to such a concept. However, U.S. reporting rules for domestic banks “are what they are,” and do not require identification procedures identical to those required under FATCA, he said.
“How we get to full reciprocity and how long it takes is something we’ll have to be working on,” Setzer said.
I have a better solution lets FIRE Ted Setzer and strip him and his family of all US General Services Administration employee and retirement benefits.
@ JustMe, there is just such a wealth of good stuff that I find it and then lose it again. Hopefully between all of us it will get rediscovered when we need it.
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It is a challenge at times, with so many posters, and not strictly controlled subject grouping, labeling or tagging. A bit of chaos, that I frankly enjoy, but it does get challenging finding things again at times.
Thanks for pulling that one out. When I went back and put it into the timeline of DATCA announcements I see it came just about 9 days before the Feb 2 big 5 FATCA partnership announcement, which was an ah ha moment for me.
We finally were able to look at Canada’s new electronic file version of T1135 which is supposedly the equivalent of a FBAR but actually it is almost more equivalent to an 8938. It requires maximum balance and end of year balance plus income gained or lost from accounts. No account numbers are required (yet) but the bank name must be listed. This looks very much to me like Canada is blending and bending to FATCA-like “standards” and yet the CRA has the nerve to describe these form changes as “minor”. This does not bode well. I believe the CRA is already geared up for a FATCA IGA, just as one of our Brockers was told by a “competent authority” earlier this year.
As we know when it comes to international tax policy, it is a copy cat world out there. So… not surprised that others will start to copy what America does. The BIGGEST worry is that some OECD country will decide that Citizenship Taxation is a GREAT idea, as if it is good enough for America, it should be good enough for them…