Tax haven banks agree to share account details with the IRS

Cayman Romney

The United States has signed agreements with the Cayman Islands and Costa Rica to help those countries’ banks comply with an anti-tax evasion law starting next year…

The deals are part of the US effort to enforce the Foreign Account Tax Compliance Act…which was enacted in 2010 and is set to take effect in July 2014. FATCA requires foreign financial institutions to tell the US Internal Revenue Service about Americans’ offshore accounts worth more than $50,000. It was enacted after a Swiss banking scandal showed that 17,000 US taxpayers had hidden substantial fortunes overseas…

With these two deals, both signed this week, the Treasury has now finished 12 FATCA “intergovernmental agreements”…which help countries’ financial institutions comply with the law…

The trading of financial information, though not part of the Cayman Islands deal but included in many of the other 11 FATCA agreements, has rankled US banks. In April, the Texas Bankers Association and the Florida Bankers Association, both industry groups, filed a lawsuit attempting to block a Treasury Department rule that would allow the IRS to send certain bank account information to foreign governments.

Looks like Romney, his Republican peers in the billionaire boys club will have to put their sleazy tax accountants to work again – searching out places to hide their funds from any responsibility to pay taxes in the United States.

It’s always preferential to hide your money rather than run the risk of leaving it inside countries that may have favorable taxation plans for foreigners; but, still let the IRS know how much you have inside their borders. Or so I’ve been told. Never had enough money to worry about.

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