US refuse to restart talks on Russian banks joining FATCA

WASHINGTON, Jul 1 (Itar-Tass) -- The U.S. still has no plans to restart talks with Moscow on Russian banks joining the Foreign Account Tax Compliance Act (FATCA) as the act comes in force on Tuesday, a U.S. Treasury representative said during a news conference. “We have suspended our talks on FATCA with Russia, and they are still being suspended,” he said. Under FATCA terms, banks must send information about U.S. clients and their transactions to the Internal Revenue Service (IRS) to avoid tax fraud committed by U.S. citizens. There is an alternative option which includes banks’ reports to national governments instead of the U.S. tax service, provided that the country has an intergovernmental agreement with the U.S. In April, the U.S. halted the talks with Russia on its banks joining the act, and in May Daniel Glazer, the assistant secretary of the U.S. Treasury, said that the American government is not considering restarting the talks with Russia due to political controversies over the Ukrainian crisis. Related news on itar-tass.com