What does the IRS plan to do to overseas banks that don’t comply?
RE: What does the IRS plan to do to overseas banks that don’t comply?
FATCA turns foreign banks and other financial institutions into enforcement arms of America’s Internal Revenue Service (IRS). They must choose between handing over information on clients who are ‘U.S. persons’ or handing 30 percent of all payments they receive from America to Uncle Sam.
“What does the IRS plan to do to overseas banks that don’t comply?”
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A 30% withholding of all U.S.-sourced payments. In other words, confiscation of nearly 1/3 of any funds that go to the overseas banks from any U.S. source, including corporate dividends.
WHY would a bank turn over it’s private account’s data to a foreign nation ?