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Bank Groups Lobbying to Kill IRS Tax Data Sharing Plan

By Colby Adams

Banks are lining up behind a bill that would block U.S. officials from ordering them to hand over data to foreign countries on clients suspected of dodging taxes abroad. The legislation, introduced July 15 by a bipartisan, congressional delegation from Texas, New York and Florida, would prevent implementation of an Internal Revenue Service plan published in January requiring U.S. banks to report annually on nonresident alien accountholders, including the deposit interest paid to their accounts. The IRS plan is intended to expand tax data sharing with other nations much as the Foreign Account Tax Compliance Act (FATCA) asks foreign banks...

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