The US IRS on January 12 announced that its international data exchange service (IDES) website is open for enrollment.
Financial institutions and host country tax authorities use IDES to electronically send information reports on financial accounts held by US persons to the IRS under FATCA or pursuant to the terms of an intergovernmental agreement (IGA). IDES will also enable the US to make reciprocal exchanges as described in the IGAs to the host country tax authority on accounts in US financial institutions held by the jurisdiction’s residents.
“The opening of the International Data Exchange Service is a milestone in the implementation of FATCA,”IRS Commissioner John Koskinen said. “With it, comes the start of a secure system of automated, standardized, information exchanges among government tax authorities. This will enhance our ability to detect hidden accounts and help ensure fairness in the tax system.”
The IRS said that 145,000 financial institutions have registered through the IRS FATCA registration system and that the US has signed or has agreed in substance to more than 110 IGAs.
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