IRS audits more charity and insurance companies

IRS with final rules for implementation-FACTA - Insurers must disclose information of customers in the USA

The U.S. IRS published its final regulations for the implementation of FACTA. Thus insurers will be obliged to disclose the data to U.S. clients. The Tax Act contains a range of measures, must proceed according to which insurers and financial institutions that manage contracts with U.S. citizens. An intergovernmental agreement between Germany and the U.S. is still in the works.


All financial institutions should disclose customer information taxable U.S. citizens, it wants the U.S. tax law, "Foreign Account Tax Compliance Act", short FACTA. It is intended to reduce tax revenue by tax evasion can be proved by overseas investments. On 17 January, the U.S. Internal Revenue Service, Internal Revenue Service (IRS), the final regulations under which the disclosure is to be implemented.

The measures have long been known, but were repeatedly postponed the deadlines for implementation to facilitate processes. Finally, the IRS had in October presented new dates for the foreign financial institutions (foreign financial institutions, FFI) to adapt their requirements for contracts with U.S. customers. Institute, the 30th to the June 2013 have concluded contracts with U.S. citizens (FFI contracts), then processes need for new accounts until 1 January 2014 to adapt, they should last until 30 June to be adjusted.

Hold for German-US Agreement

Germany and the United States negotiate additionally an intergovernmental agreement. It should be clear how processes according to the standards of FACTA and additionally facilitates data protection conflicts can be resolved. On 26 July to a model agreement to improve tax compliance and implementation of FACTA was published. In September 2012 also included the UK, a similar agreement, other states are according to the U.S. Department of the Treasury to follow shortly. Those negotiations have been completed long after that, a deadline was set by the end of 2012.

For the insurer, the German-American agreement is an important basis for the implementation of FACTA. Insurers need to examine their holdings after the corresponding U.S. evidence and adjust the processes for new customers after the regularities of FACTA.

The full provisions of the IRS can be viewed online. A discussion forum of Versicherungsforen Leipzig GmbH deals specifically with the question of how insurance companies can now implement the FACTA provisions. The forum takes place on 5 March 2013 in Cologne.

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