WASHINGTON — U.S. Rep. Richard E. Neal, a senior member of the House Ways and Means Committee, onThursday welcomed a decision by the U.S. Treasury Department to take further action to cut down on offshore tax avoidance by American citizens and to bring more transparency to international banking.
The Treasury Department disclosed strict tax compliance and enforcement measures that foreign financial institutions must observe when U.S. individuals seek to establish offshore accounts in foreign banks. The new reporting requirements are the next step in the full implementation of the Foreign Account Tax Compliance Act, which was passed by Congress in 2010. Neal held hearings on the issue and was a co-sponsor of the legislation, according to a news release.
In March 2009, Neal, then chairman of the House Ways and Means Select Revenue Subcommittee, held a hearing on issues involving bank secrecy practices and wealthy Americans engaging in offshore tax avoidance.
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