Concern Building on FATCA Reporting in U.S. Financial Community

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U.S. banks are worried about having to report increasing amounts of information on their account holders to other countries under the Foreign Account Tax Compliance Act, stakeholders tell BNA. “The interest has jumped from offshore to onshore reporting,” Michael Silva, a partner with DLA Piper, says. At its core, the law requires foreign banks to tell the Internal Revenue Service about U.S.-owned accounts or potentially face a 30 percent withholding tax. But a new model agreement for government-to-government information sharing could mean the United States will seek even more data on accounts in this country.