Tax Information Exchange – Exchange Of Bank Deposit Interest Information
Showing that there will be additional commitments to tax information exchange, the IRS recently released Revenue Procedure 2014-64 that provides an updated list of countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information for purposes of the bank deposit interest reporting requirements.
This revenue procedure lists the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of information within the meaning of section 6103(k)(4) of the Internal Revenue Code pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate for purposes of the reporting required of payors under §§1.6049-4(b)(5) and 1.6049-8(a) of the Income Tax Regulations.
This update serves as a reminder to both U.S. taxpayers with foreign income to make sure that all worldwide income is reported. As the U.S. and its designee, the IRS, work towards shrinking the tax gap of unreported income, we can expect more information to be exchanged and eventually U.S. taxpayers be called to the mat for any unreported income. It is important to note that many foreign countries have the same problems related to unreported income for their citizens and their intent is to reciprocate and ensure transparency.
The following are the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:
Antigua & Barbuda
British Virgin Islands
Isle of Man
Netherlands island territories: Bonaire, Saba, and St. Eustatius
St. Maarten (Dutch part)
Trinidad and Tobago
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