WASHINGTON — An IRS proposal to require U.S. banks to report the interest earned by certain foreign depositors has revived a decade-old fight in the battle over how far authorities should go to fight tax evasion.

It is an issue with much more emotional resonance than most matters that come before the House subcommittee on financial institutions. At a hearing Thursday, witnesses who oppose the proposed regulation said that it might lead to kidnappings in foreign countries, while a supporter of the IRS proposal argued that its opponents have a vested interest in shielding criminals.

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