IRS Announces Alternative FATCA Approach for Switzerland, Japan

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The Treasury Department announces agreements with Switzerland and Japan to pursue a new alternative approach to compliance with the Foreign Account Tax Compliance Act, with an official telling BNA the U.S. government does not expect further models to be proposed. The new alternative would allow financial institutions in Switzerland and Japan to report directly to IRS, with additional information supplied by their governments upon request. A senior Treasury official tells reporters that this alternative is necessary because of domestic legal impediments such as privacy rules that would prevent willing institutions from participating in the reporting requirements.