IRS Finalizes FATCA Rules, Signs Model Agreement with Norway

By Colby Adams and Brian Monroe

The U.S. Treasury Department Thursday finalized rules for a controversial law intended to pressure foreign banks to name their American clients, and disclosed a related bilateral agreement with Norway. The final Foreign Account Tax Compliance Act (FATCA) regulations require participating, non-U.S. banks to annually report information on their American clients, including names, addresses, taxpayer identification numbers and account numbers and balances. When local law prevents such data-sharing and clients refuse to cooperate, the institutions must close the accounts or pay a 30 percent withholding tax. On a conference call Thursday afternoon, an IRS official characterized the 543-page regulation as relatively...