US Reaches EU Tax Accord

The United States has reached an accord with the EU Commission that will remove a major area of difficulty concerning the implementation of the Foreign Account Tax Compliance Act.

Originally, the US Treasury was insisting that foreign banks should report details of US citizens’ bank accounts directly to the US Internal Revenue Service. This measure would have breached certain countries own laws.

An agreement has been reached that will require these banks to report directly to their own authorities who will then pass the data onto the IRS.

US law continues to operate on an extremely extra-territorial basis causing major dilemmas for international financial institutions.