25 Feb Mexico, France, Germany, Italy, Spain, and the United Kingdom Agree to Share Bank Information with the United States
Spurred by the requirements set forth in the Foreign Account Tax Compliance Act (FATCA), on February 8th, the governments of France, Germany, Italy, Spain, the United Kingdom, and the United States agreed to implement a system for government-to-government sharing of bank account information of their citizens and residents. On February 24, it was reported that a similar information sharing system was agreed to between the Mexican Tax Administration Service and the United States Internal Revenue Service (IRS), allowing each to access bank and financial asset information of their citizens.
Generally, FATCA imposes an obligation on banks and other financial institutions to report personal information of any of their accountholders that are United States persons. FATCA’s implementation is scheduled for 2014 and remains the subject of great controversy, however, the agreements between governments referenced above could be implemented much sooner. These inter-government agreements present an imminent threat of exposure for U.S. persons with undisclosed foreign bank accounts.
As previously discussed in our blog from January 12, 2012, earlier this year the IRS announced a third initiative to allow U.S. taxpayers with unreported income relating to undisclosed foreign bank or financial accounts to make a voluntary disclosure to get current with their taxes and information filing obligations. US taxpayers with unreported offshore income (especially in the countries mentioned above) should consult the Royse Law Firm or another tax professional to discuss the new voluntary disclosure initiative in detail.Disclaimer: This blog and website are public sources of general information concerning our firm and its lawyers, as well as the information presented. They are intended, but not promised or guaranteed, to be correct, complete, and up-to-date as of the date posted. This blog and website are not intended to be, and are not, sources of legal opinion or advice. The materials, information, and communications on this blog and website do not apply to any particular person, entity, or situation, and do not apply to you or to your specific situation. You will need to consult with an attorney and/or other appropriate professional about your specific situation. Thank you.