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....
The criminal division of the U.S. Internal Revenue Service will send representatives to two nations in an effort to better coordinate financial crime investigations, a senior agency official said Monday.
With the first deadline for an anti-tax evasion law a year away, foreign financial institutions remain unsure about their obligation to renew certain certifications and amend their recordkeeping procedures.
A U.S. anti-tax haven law that goes into effect in 2013 may serve as a model for European legislators seeking to recoup lost tax revenue, said speakers at an anti-money laundering conference on Monday and Tuesday.