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Lawmaker Seeks Delay in Implementation of FATCA Rules

MAY 29, 2013

Lawmaker Seeks Delay in Implementation of FATCA Rules

DATED MAY 29, 2013
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May 29, 2013

 

 

The Honorable Jacob J. Lew

 

Secretary

 

U.S. Department of the Treasury

 

1500 Pennsylvania Avenue, NW

 

Washington, DC 20220

 

 

Dear Mr. Secretary:

I am writing to express my concerns regarding an IRS regulation finalized earlier this year that would require banks to report to the IRS the names and amounts of interest paid on deposits held by nonresident aliens, even though these individuals are not subject to U.S. federal taxation.

As a center of international business and finance, Miami receives billions of dollars in this kind of capital investment, which supports loan generation, spurs job creation, and ultimately strengthens our regional economy. I have heard, as I am sure you have, that these new reporting requirements have raised concerns among Florida banks that their depositors may withdraw these funds out of concern that their financial information may fall into the wrong hands as a result of these new regulations.

I want to compliment the Treasury Department for its decision last September, as indicated in a letter to my colleague Rep. Debbie Wasserman-Schultz that it would not exchange information collected pursuant to the new regulation with Venezuela. Despite this positive step, the information reporting requirements remain in place, and, of course, there remain many other countries on the U.S. tax treaty list with inadequate law systems, including Egypt, Pakistan, and the Russian Federation.

The South Florida economy and financial markets benefit tremendously from this international deposit flow. At a time when our economic recovery is beginning to pick up steam, I urge you to consider a delay of at least twelve months in implementing this regulation in order to mitigate the outflow of this capital and the potentially detrimental impact on our economic recovery.

Respectfully,

 

 

Joe Garcia

 

Member of Congress
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