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US delays offshore tax-dodge law

The US Treasury Department says it will postpone enforcement of a new law that cracks down on offshore tax avoidance by Americans by six months to give foreign banks more time to figure out how to comply.

The Foreign Account Tax Compliance Act, or FATCA, requires foreign banks, insurance companies and investment funds to send the US. Internal Revenue Service information about Americans’ offshore accounts worth more than $50,000.

The United States has struggled to implement FATCA since it was enacted in 2010 following a scandal over secret Swiss bank accounts, Reuters reports, adding, that enforcement of FATCA penalties was delayed once already from an original 2013 start date and has now been pushed back to July 1, 2014.

To help implement FATCA worldwide, Treasury officials last year started negotiating deals with foreign governments, Reuters said. Those efforts in part prompted the law’s delay, Treasury said.

“We are providing an additional six months to complete agreements with countries and jurisdictions across the globe,” Robert Stack, Treasury deputy assistant secretary for international tax affairs, said in a statement Friday.

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Published July 15, 2013 at 9:00 am (Updated July 14, 2013 at 5:58 pm)

US delays offshore tax-dodge law

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