New IRS Guidance for Foreign Banks and Withholding Agents

The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 to combat tax evasion by Americans using Swiss bank accounts and hiding other financial assets overseas. FATCA requires Foreign Financial Institutions (FFIs), including banks, mutual funds, and hedge funds, to report information about American accounts to the Internal Revenue Service. FFIs that do not…

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Swiss Banks Agree to Turn Over Bank Account Information

The U.S. Department of Justice has announced a program pursuant to which Swiss banks can turn over detailed information about their U.S. account holders in return for agreements that the banks will not be criminally prosecuted by U.S. tax authorities. Under the program, banks must disclose their cross-border activities and disclose accounts in which U.S.…

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