– from Star Wars: Episode V – The Empire Strikes Back (1980)
The Miami Herald had this story in the Sunday paper. (Hat tip to Roger Conklin)
Under new IRS disclosure regulations, details about U.S. bank accounts held by foreign nonresident depositors could be shared with their home governments. As a result, bankers say hundreds of millions of dollars have left Florida since April.
What is interesting to me about this story is this: While they talk about the global crackdown on tax evasion, and reference the history of UBS, and the IRS voluntary disclosure program, there is no mention of FATCA anywhere. Not sure if that is intentional, or if the journalist doesn’t understand the connection between FATCA, and this domestic effort which I call DATCA (my shorthand).
For the likes of Debbie Wasserman Schultz , Chair of the Democratic National Committees, she is now in a tough place. She voted for FATCA, and then voted to delay DATCA, the IRS reciprocity fall out of her first vote. Ah, sweet irony! :)
I continue to record the history of this developing story here
From Accounting Today, Michael Cohn reports that the IRS Issues FATCA Guidance on Reporting Interest Paid to non resident Aliens
The Internal Revenue Service has issued final regulations and guidance on reporting interest paid to nonresident aliens, along with a revenue procedure listing the countries with which the U.S. has a bilateral exchange of information agreement. Continue reading
We have a case of dueling editorials in the Miami Herald between Senator Rubio and Rep Posey on one hand, (March 7) and a response on March 15 by Emily McMahon, acting assistant secretary for tax policy, Treasury Department, Washington, DC. I have posted the links in other threads, but wanted to give this duel a little more visibility, as it really represents FATCA vs DATCA battle. Although you won’t see that direct connection in the editorials of either authors. But the EU 5 country FATCA agreement for tax data exchange reciprocity rests on the IRS being able to impose DATCA on US banks. The only place that is pointed out, is in the comments section which I encourage you to read and add your own comments.
Offshore depositors won’t be hurt by Emily McMahon
A destructive IRS mandate by Senator Rubio and Rep Posey
From Just Me:
FATCA and citizenship taxation.
There are lots of comments, and mine will get lost, but here is what I added for what it is worth….