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Eversheds Comment: US Banker Associations to sue IRS and Treasury

  • USA

    19-04-2013

    Two US state banker associations have filed a lawsuit against the IRS and the Treasury department over new rules requiring banks to assist in combating tax evasion by reporting account information for non-resident aliens to their home governments. Commenting on the development, Andrew Legg, partner at global law firm Eversheds, said:

    “This development will bring a smile to the lips of many. It was the US which promulgated legislation (FATCA – Foreign Account Tax Compliance Act) which required US citizens to report their financial accounts held overseas and foreign financial institutions to report to the IRS about their US clients. As part of the implementation process for that legislation, the US entered into reciprocal arrangements with other states, including the UK. It appears now that sections of the US banking industry are not best pleased about that – it causes a wry smile that they didn’t speak up on this when FATCA was introduced when the burden was not yet on them but on foreign banks!”

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