The IRS has been clear that it is very serious about US taxpayers with foreign financial assets being compliant with tax reporting requirements. There have been three rounds of the Offshore Voluntary Disclosure Initiative. It is not too late to enter into the program.
Anyone with an undisclosed foreign account should seriously consider entering the program.
The U.S. Department of the Treasury announced today that it has signed a bilateral agreement with Switzerland to facilitate the implementation of the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA).
Acting Secretary of the Treasury, Neal Wolin stated, “[t]oday’s announcement marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion … [w]e are pleased that Switzerland has signed a bilateral agreement with us, and we look forward to quickly concluding agreements based on this model with other jurisdictions.”
FATCA targets non-compliance by U.S. taxpayers using foreign accounts. This law requires that foreign banks report directly to the United States about financial accounts held by U.S. Taxpayers.
Switzerland is now one of various countries that have signed or initialed an intergovernmental agreement which helps to facilitate the effective and efficient implementation of FATCA.
Other countries with agreements with the US related to FATCA include, Ireland, Mexico, Denmark and United Kingdom