The U.S. Treasury provided details yesterday on how foreign banks and nations can comply the Foreign Account Tax Compliance Act (FATCA), Reuters reports. FATCA seeks information on U.S. citizens’ holdings in overseas banks to limit tax dodging. FATCA, which takes effect in 2014, mandates that foreign financial institutions inform the U.S. governments of any accounts controlled by U.S. citizens that contain more than $50,000. That requirement has run up against other countries’ privacy laws as well as account holders’ preference for secrecy.
Treasury says it will enter into two types of arrangements with other countries: reciprocal information sharing between tax collection agencies, or one-way information sharing from the nation’s government to the IRS.