Tax Partner Addresses European Criticism of U.S. Foreign Account Tax Compliance Act
Tax partner Kathleen Saunders Gregor (Boston) was quoted in a Law360 article that discusses how the U.S. Department of the Treasury is unlikely to change reporting requirements of the U.S. Foreign Account Tax Compliance Act in response to European complaints. Her remarks were also published in POLITICO Pro’s “Morning Tax” roundup.
Ms. Gregor explains that it would be out of character for the U.S. Treasury to roll back FATCA reporting requirements, especially if Congress does not change the law that requires American citizens to pay taxes on their worldwide income. “Very few instances in history have I ever seen the Treasury Department decide as a policy matter that they're just not going to collect tax,” she said.
Ms. Gregor notes if FATCA requirements were rolled back, the common reporting standard may need to be implemented. The Organization for Economic Cooperation and Development designed the standard as the global framework for tax administrations to share individuals' bank account information.