IRS Updates Countries on Tax Data Exchange List

Superseded by Rev. Proc. 2019-23

Supersedes Rev. Proc. 2014-64, 2015-50, 2016-18, 2016-56, 2017-31, and 2017-46

Implementation of Nonresident Alien Deposit Interest Regulations

26 CFR 601.201: Rulings and determination letters

(Also Part 1, §§ 6049; 1.6049-4, 1.6049-8)

SECTION 1. PURPOSE

This revenue procedure provides a current list of the jurisdictions with respect to which the reporting requirement of §§ 1.6049-4(b)(5) and 1.6049-8(a) of the Income Tax Regulations applies, effective for interest paid on or after January 1, 2019.

This revenue procedure also provides a current list of the jurisdictions with which the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under §§ 1.6049-4(b)(5) and 1.6049-8(a).

SECTION 2. BACKGROUND

Sections 1.6049-4(b)(5) and 1.6049-8(a), as revised by TD 9584, 2012-20 I.R.B. 900, require the reporting of certain deposit interest paid to nonresident alien individuals on or after January 1, 2013. Section 1.6049-4(b)(5) provides that in the case of interest aggregating $10 or more paid to a nonresident alien individual (as defined in section 7701(b)(1)(B)) that is reportable under § 1.6049-8(a), the payor is required to make an information return on Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, for the calendar year in which the interest is paid. Interest that is reportable under § 1.6049-8(a) is interest described in section 871(i)(2)(A) that relates to a deposit maintained at an office within the United States and that is paid to a resident of a jurisdiction that is identified, in an applicable revenue procedure (see § 601.601(d)(2)) as of December 31 prior to the calendar year in which the interest is paid, as a jurisdiction with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4), under which the competent authority is the Secretary of the Treasury or his delegate and the United States agrees to provide, as well as receive, information. The preamble to the regulations noted that the IRS is not required to exchange information with another jurisdiction, even if an information exchange agreement is in effect, if there are concerns about confidentiality, safeguarding of data exchanged, the use of the information, or other factors that would make the exchange of information inappropriate.

Rev. Proc. 2012-24, 2012-20 I.R.B. 913, was published contemporaneously with the publication of TD 9584 to provide a list of those jurisdictions with which the United States has in force an information exchange agreement, such that interest paid to residents of such jurisdictions must be reported by payors to the extent required under §§ 1.6049-4(b)(5) and 1.6049-8(a), and to provide a separate list identifying those jurisdictions with which the automatic exchange of the information collected under the regulations has been determined by the Treasury Department and the IRS to be appropriate. Rev. Proc. 2012-24 was updated and superseded by Rev. Proc. 2014-64, 2014-53 I.R.B. 1022, and the lists of jurisdictions in Rev. Proc. 2014-64 were supplemented by Rev. Proc. 2015-50, 2015-42 I.R.B. 583; Rev. Proc. 2016-18, 2016-17 I.R.B. 635; Rev. Proc. 2016-56, 2016-52. I.R.B. 920; Rev. Proc. 2017-31, 2017-16 I.R.B. 1104; and Rev. Proc. 2017-46, 2017-43. I.R.B. 372.

This revenue procedure updates and restates the lists of jurisdictions in Rev. Proc. 2014-64 as supplemented, adding Argentina and Moldova as jurisdictions with which the United States has in force a relevant information exchange agreement, and adding Greece as a jurisdiction with which the relevant automatic exchange of information has been determined appropriate.

SECTION 3. JURISDICTIONS OF RESIDENCE WITH RESPECT TO WHICH THE REPORTING REQUIREMENT APPLIES

The following are the jurisdictions with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

SECTION 4. JURISDICTIONS WITH WHICH THE TREASURY DEPARTMENT AND THE IRS HAVE DETERMINED THAT AUTOMATIC EXCHANGE OF DEPOSIT INTEREST INFORMATION IS APPROPRIATE

The following list identifies the jurisdictions with which the automatic exchange of the information collected under §§ 1.6049-4(b)(5) and 1.6049-8 has been determined by the Treasury Department and the IRS to be appropriate:

SECTION 5. EFFECT ON OTHER DOCUMENTS

Rev. Procs. 2014-64, 2015-50, 2016-18, 2016-56, 2017-31, and 2017-46 are superseded with respect to interest paid on or after January 1, 2019.

SECTION 6. EFFECTIVE DATE

With respect to the jurisdictions newly listed in Section 3, this revenue procedure is effective for interest paid on or after January 1, 2019.

SECTION 7. DRAFTING INFORMATION

The principal author of this revenue procedure is Jackie Bennett Manasterli of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure, contact Ms. Manasterli at (202) 317-6941 (not a toll-free call).