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IRS Commissioner Support for Reciprocal FATCA Bill

On April 7, 2022, IRS Commissioner Charles P. Rettig delivered crucial testimony before the Senate Finance Committee, addressing agency operations and the President’s 2023 budget request. A focal point of his testimony centered on advocating for a reciprocal Foreign Account Tax Compliance Act (FATCA) bill, underscoring the importance of international cooperation in combating tax evasion and ensuring tax transparency.

Commissioner Rettig emphasized the commitment made by the United States to its exchange partners worldwide when FATCA was enacted, pledging to reciprocate by passing similar provisions for the exchange of financial information. However, despite this commitment, partner jurisdictions have voiced concerns that U.S. financial institutions are not sharing reciprocal information as promised.

In response to these concerns, Commissioner Rettig voiced his support for the pending reciprocal Foreign Account Tax Compliance Act bill, advocating for its swift passage to uphold the United States’ commitment to international tax transparency efforts. The bill aims to address the imbalance in information exchange by ensuring that U.S. financial institutions reciprocally share relevant financial information with partner jurisdictions, thus enhancing global efforts to combat tax evasion and promote tax compliance.

By supporting the reciprocal Foreign Account Tax Compliance Act bill, Commissioner Rettig reaffirms the IRS’s commitment to upholding tax transparency standards and fostering cooperation among nations in combating illicit financial activities. The passage of such legislation would not only strengthen the United States’ standing in the global tax community but also bolster international efforts to promote fair and equitable taxation worldwide.

Check out Commissioners statements regarding support for the reciprocal FATCA bill at around the 47:00 mark here:

Check out pending FATCA Bills here:

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IRS Commissioner Support for Reciprocal FATCA Bill

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

Comply Connect – March 2024 – Issue 9

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