United States and France sign FATCA agreement

BY ALISTAIR M. NEVIUS, J.D.

The Treasury Department announced on Thursday that the United States and France have signed a bilateral agreement requiring French banks to report to the French government information about their U.S. account holders. The government of France will forward that information to the IRS, and in return the IRS will provide similar information to France about French account holders at U.S. financial institutions.

France was one of six countries (along with Germany, Italy, Spain, the United Kingdom, and the United States) that participated in developing model intergovernmental agreements designed to implement the information-reporting and tax-withholding provisions of the Foreign Account Tax Compliance Act (FATCA). This law, enacted in 2010 as part of the Hiring Incentives to Restore Employment Act, P.L. 111-147, requires non-U.S. financial institutions to report information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial interest. 

The agreement with France is the 10th FATCA intergovernmental agreement signed to date, Treasury reports.

Alistair Nevius ( anevius@aicpa.org ) is JofA editor-in-chief, tax.

MANAGEMENT ACCOUNTING

Developing finance leaders

A good leader recognizes that part of the job is developing the next generation of leaders. Veronica McCann, CGMA, a former division CFO at Commerzbank in Singapore, shares tips on developing future finance leaders.

PROFESSIONAL ISSUES

Belicia Cespedes: A CPA at 17

Through hard work and determination, Belicia Cespedes earned the credential before she was even eligible to vote.

SPONSORED REPORT

How to audit high risk areas

Revenue recognition, internal control over financial reporting, accounting estimates and going concern are areas of audit that have emerged as particularly challenging and complex.