IRS Commissioner Koskinen says budget cuts will limit the government’s ability to use information supplied by other governments under FATCA to track down tax evaders. Congress enacted FATCA in 2010 to target U.S. taxpayers using foreign accounts in order to avoid paying taxes.
Koskinen also said not to expect any extensions on upcoming deadlines. Several key deadlines are approaching, including:
- April 25, 2014 – Foreign Financial Institutions (FFI) to register on FFI REgistration Portal
- June 2, 2014 – IRS to publish FFI list
- July 1, 2014 – New account onboarding procedures implemented for U.S. Withholding Agents, Participating FFIs, and Registered Deemed-Compliant FFIs
See Richard Rubin’s article on Bloomberg for more information.