US, European countries sign tax-evasion agreement

WASHINGTON (AP):

The United States (US) and five European nations are pledging to crack down on global tax evaders.

The Treasury Department said yesterday that the US government has signed a joint agreement with France, Germany, Italy, Spain and the United Kingdom to intensify their efforts to fight international tax evasion.

Treasury also announced that the Internal Revenue Service is publishing proposed rules investors will have to follow in reporting on earnings from foreign bank accounts.

cracking down

The regulations were required under a 2010 law Congress passed aimed at cracking down on taxpayers using foreign accounts to avoid paying US taxes.

"When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden," said Emily S. McMahon, Treasury's acting assistant secretary for tax policy.

The regulations establish tax reporting requirements for foreign banks that hold accounts for US taxpayers.

The IRS, the US tax collector, will review the regulations and has the authority to modify them before they take effect.