Intergovernmental Agreement

http://www.treasury.gov/press-center/press-releases/Pages/tg1653.aspx

Regulatory

Global

U.S. Internal Revenue Service

Intergovernmental Agreement to improve tax compliance and implement FATCA. It establishes a framework for reporting by foreign financial institutions of certain financial account information to their respective tax authorities, followed by automatic exchange of such information under existing bilateral tax treaties or tax information exchange agreements.

There are two versions of the model agreement - a reciprocal version and a nonreciprocal version.  Both versions establish a framework for reporting by financial institutions of certain financial account information to their respective tax authorities, followed by automatic exchange of such information under existing bilateral tax treaties or tax information exchange agreements. Withholding and due diligence begins July 1, 2014, with the first report of information under FATCA due in 2015,including information about accounts maintained during 2014.

Treasury Engaging with More than 80 Countries to Combat Offshore Tax Evasion and Improve Global Tax Compliance