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IRS Eases Foreign Bank Regime in Line With Trump Order (3)

Dec. 13, 2018, 3:52 PMUpdated: Dec. 13, 2018, 10:49 PM

The IRS is easing withholding requirements for the Foreign Account Tax Compliance Act, an international reporting regime that has drawn criticism from lobbying groups for U.S. taxpayers living abroad and financial institutions.

FATCA mandates that foreign banks report the offshore assets of U.S. account holders. The Internal Revenue Service said in Dec. 13 proposed rules (REG-132881-17, RIN:1545-BO30) that it would slash withholding requirements for payments—in the form of wages, dividends, and a variety of other types of reimbursement—from the U.S. to foreign financial institutions under FATCA.

The softening of the requirements aligns ...