IRS Rule on Nonresident Account Reporting Draws Criticism from Both Sides of Debate

By Colby Adams

The U.S. Treasury Department finalized rules Tuesday that could eventually permit the automatic exchange of U.S. banking data with dozens of countries in efforts to combat offshore tax evasion. When they take effect in January, the final regulations will require U.S. banks to report the interest earned on accounts held by foreign citizens to the IRS, which in turn could submit the data to the accountholders' domestic tax authorities, either automatically or in response to a specific request. The IRS would share the information only with the 78 nations it has entered into bilateral tax treaties with, the agency said....