The US Treasury and Internal Revenue Service have responded to industry concerns in the final and temporary regulations for the Foreign Account and Tax Compliance Act (FATCA). However, the effective date of July 1 2014 was not changed.
Practitioners are hoping US Internal Revenue Service (IRS) agents will get more discretion when a directive on the Information Document Request (IDR) enforcement process is reissued soon.
Canada has overcome concerns about America’s Foreign Account Tax Compliance Act (FATCA) and signed a bilateral intergovernmental agreement (IGA) with the US to implement it.
Tax executives are feeling the heat as governments around the world increase enforcement, initiating more audits and disputes. Some, though by no means a majority, believe a concept known in different jurisdictions as horizontal monitoring, enhanced relationships or cooperative compliance may be the key to an improved relationship between both sides.
