Daily Tax Update - June 11, 2013: Treasury Announces FATCA Agreement Between US and Japan

Treasury Announces FATCA Agreement Between U.S. and Japan:  Today, the Treasury Department announced an agreement between the United States and Japan to “improve international tax compliance and to facilitate implementation of the Foreign Account Tax Compliance Act (FATCA).”  Under the agreement, which is designed to allow Japanese financial institutions to comply with FATCA without violating Japanese law, Japanese financial institutions must register with the IRS by January 1, 2014 and directly report on U.S. account holders.  Such direct reporting will be supplemented by exchange of information upon request.

The document can be accessed via: Statement between the US Department of the Treasury and the Authorities of Japan to Implement FATCA (6-11-2013)

Baucus: No Timeline for Tax Reform:  Today, Senate Finance Committee Chairman Max Baucus said that he has no specific timeline for tax reform.  Baucus said that the Committee plans to release two additional tax reform options papers.  He said, “You've got to give us a little time to assimilate all of that.”  Baucus added, “Once the options papers are done, it's time to start making some decisions” on tax reform.  The Finance Committee is expected to release another options paper this week and the last one next week.