On February 5, 2014, the Treasury Department announced that it had recently concluded FATCA IGA’s with Canada, Hungary, Italy, and Mauritius. All four agreements were reciprocal Model 1 agreements. In other words, FFI’s in those countries will report information on U.S. account holders to their own governments for transfer to the IRS. The IRS will also transfer to those countries information on those countries’ account holders at U.S. banks.
“This marks another step on the path toward near-universal international banking transparency,” said Jim Mastracchio, co-chair of BakerHostetler’s Tax Controversy practice and chair of the firm’s Criminal Tax Defense group. “People who still have undeclared foreign bank accounts need to seek counsel regarding their options.”