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Excerpt: Taxpayers with foreign accounts will want to take note of an agreement recently developed by the U.S. and several other countries, including France, Germany and the U.K. The “model intergovernmental agreement” is intended to implement FATCA, or the Foreign Account Tax Compliance Act. FATCA requires foreign financial institutions to report to the IRS information on accounts or insurance or annuity contracts with values above set amounts, and that are held by U.S taxpayers, or by foreign entities in which U.S taxpayers hold a substantial ownership interest.
The goal of FATCA, which was signed into law in 2010, is to reduce the risk that U.S. taxpayers use accounts outside the U.S. to evade taxes. The recent agreement “marks an important step in establishing a common approach to combating tax evasion based on the automatic exchange of information,” the Treasury says.
Read full article via New Intergovernmental Agreement to Support FATCA | Business Finance.