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IRS says to phase in new anti-tax evasion law

Reuters News
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Posted: Jul 14, 2011 2:39 PM

WASHINGTON (Reuters) - The Internal Revenue Service, the U.S. tax collection agency, on Thursday said it will phase in a new law to combat tax evasion, giving foreign financial institutions more time to comply.

Under 2010's Foreign Account Tax Compliance Act (FATCA), new disclosures to the IRS are required of both account holders who are U.S. taxpayers, and foreign banks and other financial institutions where the accounts are held.

The IRS said foreign financial institutions will have until June 30, 2013 to reach agreements with the agency on cooperation.

(Reporting by Kevin Drawbaugh, Editing by Chizu Nomiyama)