Japanese and Swiss Banks Agree to Report U.S. Tax Evaders

Today, the United States Treasury announced that it’s made compliance regulations easier for Japan and Switzerland in order for them to report on the bank accounts of United States citizens. This is a huge step in what many tax evading Americans have feared as FATCA (Foreign Account Tax Compliant Act) aims to expose these individuals for not reporting income hidden in offshore accounts.

Prior to Japan and Switzerland, agreements have been made with Italy, Germany, France, Spain and the U.K. The original framework for these countries was set up so that financial institutions would give reports to their local government, but Japan and Switzerland have been given the ability to report directly to the IRS, which simplifies the process. The United States Treasury has said that it will consider making the same deals with other countries if it helps ease the stress of the process.

For months, the Swiss government has been trying to negotiate an agreement that would keep the names of thousands of account holders private, therefore aiding in helping them evade taxes. This has caused the U.S. to start targeting Swiss banks individually; 11 to be exact.

The U.S. and Switzerland hope to reach an agreement by the end of the year on how to deal with past and present issues on reporting on U.S. account holders. The Swiss Banking Association says that it welcomes the implementation of FATCA and less complex reporting methods.

Many Americans have been able to, up until now, evade taxes by harboring money in offshore accounts. As the IRS becomes more aggressive, many taxpayers will be faced with problems that should not be handled lightly. Hiring a tax professional is crucial to defending your rights as a taxpayer. If you are having IRS tax problems, contact JG Tax Group today.