IRS Delays Offshore Bank Reporting Rule Without Touching Policy

July 15th, 2011


WASHINGTON – The Internal Revenue Service is giving more time to Toronto-Dominion Bank (TD), Aegon NV (AGN) and other banks based outside of the U.S. to implement a controversial tax reporting rule.

In guidance issued yesterday on the Foreign Account Tax Compliance Act, the IRS didn’t address some of the central questions that have caused financial institutions to fight the proposal. For instance, one of the rule’s most complex provisions — a requirement to withhold 30 percent from payments that might have indirectly originated in the U.S. — remains in the proposal.

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