May 2 (Reuters) - The U.S. Treasury Department said on Friday that the Internal Revenue Service (IRS) this year and next will take into account “good faith efforts” by foreign banks to comply with a new U.S. anti-tax evasion law set to take effect on July 1.
The Foreign Account Tax Compliance Act (FATCA), approved in 2010, will require foreign banks and other financial institutions to hand over information to the IRS about Americans’ accounts worth more than $50,000.
Already delayed twice, the law will be implemented in a “transition period” in 2014 and 2015 with enforcement taking into account efforts to comply with it, Treasury said.
“Today’s notice outlines several measures to help institutions comply with FATCA in a timely manner,” said Deputy Assistant Secretary for International Tax Affairs Robert Stack in a statement. (Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh and Chris Reese)