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Why Foreign Banks Will Shun American Business

One Response to "Why Foreign Banks Will Shun American Business"

  • Marvin Van Horn
    October 24, 2011 - 5:02 pm

    So, there is another story here, and that is that the IRS is trying to create the US version of FATCA… A good acronym would be USBATCA.

    Of course some in Congress are trying to shut that down when they see what the cost to the US financial industry might be, and how it might chase away investment in America. Trying to have US banks report interest paid out to non-residents back to all governments in the world would be a compliance nightmare. Glad they are worried about that cost, but they certainly weren’t concerned about it when they enacted FATCA in the first place….. A real irony, I would say….

    “Rep. Charles Boustany, R-La., wrote a letter to Treasury Secretary Timothy Geithner and IRS Commissioner Doug Shulman saying the proposed regulation could potentially drive foreign investment out of the U.S. economy and harm individuals and small businesses by reducing access to capital. He called on the Treasury to provide a cost-benefit analysis detailing the administrative burdens of the regulation before it is approved by the IRS.”

    “This is not the first time the IRS has attempted to issue this regulation,” said Boustany. “At the close of the Clinton Administration, the IRS tried to put in place similar reporting requirements. However, after members of Congress, the Federal Deposit Insurance Corporation, and the U.S. Small Business Administration raised strong concerns, the proposal was eventually withdrawn. It is disappointing to see the IRS once again try to impose unnecessary regulations and costs on U.S. banks.”

    Read more here… http://www.accountingtoday.com/news/Congressman-Tells-IRS-Back-off-Bank-Disclosures-60322-1.html

    or the actual Letter to Geithner here… http://waysandmeans.house.gov/UploadedFiles/Letter_on_NRA_taxation_final.pdf

    So, Geithner was supposed to reply to Congressman Boustany by the 11th of October. Do you think he did? What did he say?