Senate Passes Bill to Tax Banks that Don’t Disclose U.S. Clients

By Colby Adams

U.S. lawmakers approved a measure Wednesday to pressure foreign banks to disclose details about their American client accounts as part of an effort to clamp down on tax evasion. The provision, which came as part of the Hiring Incentives to Restore Employment Act, will impose a 30 percent withholding tax on transactions tied to U.S. client accounts when beneficial ownership data on the accounts isn't disclosed to the United States. The data includes client names, tax identification numbers, addresses and account balances. On Wednesday morning, the Senate approved the bill 68 to 29, clearing the way for the legislation to...