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IRS Updates Guidance for Reporting Deposit Interest Paid to Nonresident Alien Individuals

The IRS recently published Revenue Procedure 2014-64 (“Rev. Proc.”), which provides an updated list of jurisdictions with which the United States has an agreement to exchange information regarding U.S. deposit interest earned by nonresident alien individuals. Section 3 of the Rev. Proc. lists these countries and Section 4 lists countries with which the U.S. has an automatic exchange relationship regarding the information collected. Both sections list Canada and Mexico. The upshot – nonresident alien individuals whose home country appears on these lists should consult with their advisors about disclosing U.S. deposit interest income to their home countries as these countries will likely receive this information from the U.S. government. This “reverse reporting” to foreign jurisdictions is a little known result of ongoing work the United States is doing in implementing FATCA. Click here to read the Rev. Proc. and see which countries the U.S. has an information exchange agreement with.

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Contact our team today with any tax controversy concern you’re facing. We fight every day to protect the interests of the taxpayer, and we look forward to putting you in the best tax situation possible.

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