In 2010, Congress passed the Foreign Account Tax Compliance Act (FATCA) to address concerns of tax evasion by U.S. citizens in offshore bank accounts. OFII worked closely with policymakers to ensure that the scope of the bill extended only to abusive situations without affecting legitimate cross-border business activities of taxpayers and foreign corporations who make efforts to comply with U.S. laws.
Since 2010, the Department of Treasury and the Internal Revenue Service have held public comment periods and have released preliminary rounds of guidance. OFII submitted several rounds of comments, the most recent of which was sent in August 2012. In January 2013, final regulations governing implementation of the law were released incorporating the majority of OFII’s recommendations.