In the past, the U.S. government has sent information about foreigners’ US financial-accounts to government authorities abroad, and has received such information about U.S. taxpayers’ overseas accounts.
However, the Wall Street Journal reports that the agency’s new initiative makes the sharing automatic and its scope much larger.
“This groundbreaking effort has fundamentally altered our relationship with tax authorities around the world, giving us all a much stronger hand in fighting illegal tax avoidance and leveling the playing field,” said IRS Commissioner John Koskinen.
This shared information often contains names, addresses, tax identification numbers, account numbers, account balances, and interest payments among other data.
“Many countries aren’t as stable as the U.S. and their residents fear their safety is at risk if local authorities know about their assets,” said Kevin Packman, a lawyer with Holland & Knight in Miami, who often advises people from Latin America.
Full article: IRS Now Sending Personal Account Information to Foreign Governments (Sputnik News)