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Sept. 7 — Foreign banks now required to turn over information on U.S.-owned accounts to the IRS would get a break under legislation proposed by Rep. Mark Meadows (R-N.C.).
Announced Sept. 7, the bill ( H.R. 5935) would repeal the heart of the Foreign Account Tax Compliance Act, a major part of U.S. efforts to combat global tax avoidance. Long the target of controversy, FATCA requires overseas banks to tell the Internal Revenue Service about these accounts or face a potential 30 percent withholding tax on their U.S.-source income.
The law “goes well beyond what is appropriate” and violates U.S. citizens' constitutional right to privacy under the Fourth Amendment, Meadows said in a news release Sept. 7. FATCA also creates “unnecessary burdens,” he said.
The release said the new bill is similar to the effort to eviscerate FATCA (S. 887) made by Sen. Rand Paul (R-Ky.) in 2013
While Paul's attack on FATCA drew considerable attention and some support from conservative groups, it never reached the Senate floor.
The Meadows proposal has two original co-sponsors—Reps. Jeff Duncan (R-S.C.) and Mick Mulvaney (R-S.C.).
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Text of H.R. 5935 can be found at http://src.bna.com/inD.
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