Stakeholders Ask IRS, Treasury to Limit Application of FATCA

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Foreign financial services companies and stakeholder groups ask the Treasury Department and IRS to limit the impact of the Foreign Account Tax Compliance Act for many classes of accounts and investments, while a group representing Americans abroad says it would only hurt U.S. citizens living overseas and create foreign backlash. Stakeholders say the legislation would be difficult, if not impossible, to apply for many foreign institutions and say it could lead to major disinvestment in U.S. securities. “By unilaterally imposing this legislation on the rest of the world, the United States is bound to create serious backlash from other governments, foreign companies, and foreign financial institutions,” the Geneva-based American Citizens Abroad says in a letter to IRS and Treasury.