Why FATCA Intergovermental Agreements Bind the U.S. Government
3 Pages Posted: 18 Apr 2013
Date Written: April 15, 2013
Bilateral intergovernmental agreements (IGAs) relating to the Foreign Account Tax Compliance Act (FATCA) and entered into by the U.S. government reduce the reach of FATCA's withholding tax regime, including the reach of that regime as applied to non-U.S. taxpayers. The validity of these IGAs has been questioned. Yet IGAs have a strong case for binding status as valid congressional-executive agreements or treaty-based agreements. In addition, regardless of IGAs’ status as international agreements, they should bind the U.S. government as valid administrative guidance.
Keywords: FATCA, treaty, intergovernmental agreement, withholding tax
JEL Classification: K34, H20, H26
Suggested Citation: Suggested Citation