The Internal Revenue Service may have to change its name to the International Revenue Service when it starts collecting tax revenue from foreign banks once the Foreign Account Tax Compliance Act takes effect.
The controversial law, which was included as part of the HIRE Act of 2010, requires foreign financial institutions to report on the holdings of U.S. citizens and entities to the IRS or face stiff penalties. Provisions of the law begin to take effect next year, but the regulations proposed in February have yet to be finalized.
Now the IRS is introducing a newsletter to keep taxpayers informed about the latest FATCA developments, including new guidance and regulations. Visit the FATCA News and Information List to subscribe.