U.S. Won’t Negotiate with Russia on FATCA During Diplomatic Crisis, Official Says

By Brian Orsak and Brian Monroe

U.S. officials have no plans to negotiate Russia's compliance with an anti-tax evasion law that takes effect this summer and could impose stiff monetary penalties on nonparticipating financial institutions. American officials stepped out of talks on the U.S. Foreign Account Tax Compliance Act (FATCA) with their Russian counterparts after Russia's February invasion of the Crimean peninsula. The suspension precedes an initial July 1 deadline that will impose a 30 percent withholding tax on wires sent out of the United States tied to nonparticipating banks. In a hearing Tuesday by the Senate's Foreign Relations Committee, Sen. Robert Menendez (D-NJ) questioned whether...