Reuters is reporting Overseas Tax Dragnet (FATCA) Is Refocusing On Country Partnerships.
According to this,US Department of Treasury is now negotiating with 40 countries. It sounds like each could have it’s own specific agreement. What a bureaucratic nightmare for IRS, which can’t even deal with its own bureaucracy now.
Bilateral agreements to implement FATCA are “a workaround,” said Mark Matthews, a lawyer at Caplin & Drysdale and former head of the criminal investigation division at the Internal Revenue Service.
“It is clearly less airtight and bulletproof. But the (FATCA) statute as written was wholly unachievable,” he said.
I would say “unachievable” is a bit of an understatement.
I personally don’t care whether it’s direct reporting to IRS or an IGA. My private financial information is not going to be reported to a foreign government by either my bank or my government. They are not even going to be given information on my place of birth.