Skip to Main Content
 

Bloomberg BNA Quotes Mark Matthews on FATCA Status

August 29, 2017, Bloomberg BNA

More than 50 jurisdictions—excluding the U.S.—are scheduled to exchange data on foreign accounts starting in September via the OECD's recently launched common transmission system (CTS).

. . .

U.S. Approach

The U.S. isn't a participant in the CRS because it enacted FATCA, which requires foreign banks to report U.S. account holders. Like the CRS, it's meant to combat the use of offshore bank accounts to evade taxes.

Co-panelist Mark E. Matthews, member at Caplin & Drysdale in Washington, acknowledged that he's “fairly critical of FATCA “and that the U.S. will not be joining the CRS “for the indefinite future.”

“Obviously the political environment in the United States is as fractured as it's ever been,” Matthews, a former deputy commissioner of the Internal Revenue Service, said during the IFA panel. “There is utterly no shot at any legislation that will fundamentally advance exchange of automatic information,” he said, citing President Donald Trump's “anti-globalist view.”

IRS Quality Problems

Matthews said exchange of information doesn't seem to be on anyone's priority list. “If you look under the hood, that's where the trouble starts for the system.”

The IRS has significant quality problems, according to Matthews. Part of the problem is that the IRS has about 600 data systems, some of which are ancient. “In any given day, there are constant problems.”

Section 6038A and 6038C are a step in the right direction.

Matthews said he doesn't believe the U.S. will have a workable system soon to analyze the data collected through FATCA and be able to use it the way it was envisioned by the statute.

Still, “as confident as I am that it's not working as it should, I know it will get there,” Matthews said. “And when that tiger is created, it'll be one brutal tiger.”

For the full article, please visit Bloomberg BNA's website (subscription required).

Excerpt taken from the article “Countries to Exchange Account Information in September” by Sony Kassam for Bloomberg BNA.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.