U.S. to Tread Lightly on Foreign Banks Adhering to Rules
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The U.S. Treasury Department is pledging two years of light enforcement of new tax rules for overseas banks -- as long as the financial institutions make a good-faith effort to comply.
Banks that are working to get their systems ready to implement the Foreign Account Tax Compliance Act won’t face stiff enforcement and 30 percent withholding taxes until 2016. Those that aren’t trying to comply could face consequences starting on July 1, the Treasury Department said yesterday.