Despite spending nearly $380 million to be in line with foreign tax-compliance rules, the Internal Revenue Service (IRS) took “limited or no action” in the matter and is still not prepared to enforce the Foreign Account Tax Compliance Act (FATCA), according to a new report by the Treasury Inspector General for Tax Administration (TIGTA), which oversees the IRS.
As TIGTA explains, “The U.S. Congress intended the Foreign Account Tax Compliance Act to improve U.S. taxpayer compliance with reporting foreign financial assets and offshore accounts.” The audit by TIGTA was done to “evaluate the IRS’s efforts to ensure that taxpayers, the FFIs [foreign financial institutions], and withholding agents comply with the FATCA.”
The FACTA was enacted in March 2010, more than eight years ago.
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