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'Inevitable glitches' ahead for U.S. anti-tax evasion law: IRS
[March 25, 2014]
WASHINGTON (Reuters) — A
new U.S. anti-tax evasion law, set to take effect on
July 1, will encounter "inevitable glitches," said the
head of the U.S. Internal Revenue Service on Monday,
adding that the IRS will be sympathetic to banks doing
their best to comply. The Foreign Account Tax Compliance Act (FATCA) will require foreign banks, insurers and investment funds to send the IRS information about Americans' offshore accounts worth more than $50,000. Banks failing to comply could effectively be frozen out of U.S. capital markets. |
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FATCA's start date has already been delayed
twice. Some banking groups want another six-month delay, but the
Obama administration has refused. "We've held firm to the July 1 deadline because it's already
been extended," IRS Commissioner John Koskinen said in a speech
at a tax conference. "The question is: How do we deal with the inevitable glitches
along the way?" Koskinen said. Acknowledging banks' concerns about costs and complexity, he
said, "We will be understanding of those problems as long as
those (financial) intermediaries are making reasonable, good
faith efforts to comply." Signed into law by President Barack Obama in 2010, the law was
originally supposed to take effect on January 1, 2013. That was
postponed to January 1, 2014, then to July 1 of this year. (Editing by Kevin Drawbaugh and Bernard Orr) [© 2014 Thomson Reuters. All rights reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
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