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.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.