IRS Commences Data Swaps Under FATCA

The Internal Revenue Service said Friday it has commenced exchange of financial account information with certain foreign tax administrators, meeting a key September 30the milestone related to the implementation of FATCA. The Foreign Account Tax Compliance Act, FATCA, was included as part of the HIRE Act of 2010 and has attracted controversy abroad. IRS’ timely development of information system infrastructure FATCA requires foreign financial institutions to send information to the IRS on the accounts of U.S. taxpayers, or else face stiff penalties of up to 30% on their income from U.S. sources. To meet a key September 30th milestone related…