The Internal Revenue Services Large Business & International division has opened a gateway that financial institutions and the tax authorities abroad can use to send information on financial accounts held by U.S. taxpayers in accordance with the Foreign Account Tax Compliance Act.
FATCA, which was included as part of the HIRE Act of 2010, requires foreign financial institutions to share information with the IRS about the accounts of U.S. taxpayers abroad, or else face heavy withholding penalties of up to 30 percent on their U.S. source income. The law has provoked controversy abroad, but despite delays, the IRS and the Treasury Department have been moving ahead with its implementation.
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