Two banker groups sued the U.S. challenging rules that require financial institutions to report information on accounts held by nonresident aliens that may be shared with 72 foreign governments.
The Texas Bankers Association and the Florida Bankers Association, in a lawsuit filed today against the Treasury Department and the Internal Revenue Service in federal court in Washington, said the rules are discouraging investment in the U.S. by nonresidents who fear their information may be shared with the governments of countries including Egypt, Pakistan and Venezuela.
The IRS bulletin they are talking about, is the DATCA lite, which was the first step in the push for a domestic DATCA. IRS bulletin 2012-20
Update: April 24, 2013 Here is a link to the PDF lawsuit filing.
Which has now been followed by Treasury’s addition of full FATCA reciprocity (DATCA) in the Obama’s 2014 budget Analytical Perspectives: See page 202 (spacing and highlighting below for clarity)