In a rare live webinar interview with a financial media representative, IRS Commissioner Charles Rettig is set to discuss "the current state of the IRS" this afternoon at 2pm EDT (7pm British time, 8pm CEST) with Tax Analysts president and chief executive Cara Griffith.
Although the official topic of the conversation may be the state of the IRS, it's understood that many of those planning to tune in to the interview from abroad will be hoping to hear more from Comissioner Rettig on the Foreign Account Tax Compliance Act, a 2010 tax evasion-prevention law that has caused significant issues for American citizens living abroad, as well as for non-U.S. banks and financial institutions.
As reported, the IRS commissioner has raised eyebrows in recent weeks with a couple of references to FATCA which stood out from most of what's been said about that 2010 tax evasion-prevention law by U.S. officials over the past 12 years. It began last month, when, in a 21-page document that was submitted alongside his spoken comments during a House Ways and Means subcommittee hearing, he admitted that in spite of all the efforts being made by non-U.S. financial institutions to comply with FATCA, the IRS had been struggling to enforce the legislation, owing to the fact that the agency lacked the resources it needed to do so, and had "yet to receive any significant funding appropriation for [FATCA's] implementation."
Then, testifying earlier this month before a Senate Finance Committee hearing on the IRS and President Biden's proposed 2023 budget, Commissioner Rettig let it be known that he supported the idea of the U.S. "reciprocating" with respect to the information it currently receives from foreign governments about the overseas banking and financial accounts of U.S. taxpayers, via FATCA – something most other U.S. government officials have avoided having to give their opinions on.
And now, a 37-page U.S. Treasury Inspector General For Tax Administration (TIGTA) report has emerged just within the last few hours – although it's dated April 7 – that expands on the FATCA shortcomings alluded to by the IRS commissioner, who, at least to judge by his recent comments, is likely to have been aware of it. ("Due to resource limitations, the IRS has significantly departed from its original comprehensive FATCA Compliance Roadmap in favor of a more limited compliance effort," the report says, in introductory remarks on page 2, where it also displays the table, pictured left.
To read more about today's Tax Analysts webinar, and to sign up to participate, click here.
Tax Analysts is a Falls Church, Virginia-based tax industry trade publication publisher. Among its titles is Tax Notes, which publishes various editions that focus on different areas of tax practice and geography.
Commissioner Rettig was sworn into office in October, 2018, as part of the Trump administration, and is due to leave the role when his term expires on Nov. 12. Prior to taking on the role of IRS commissioner, he was a practicing tax lawyer for more than 36 years with (and before he left for Washington, was managing principal of) the Beverley Hills-based firm of Hochman, Salkin, Rettig, Toscher & Perez, P.C.,( as the firm states on its website. )
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