The Israel Tax Authority will notify the US Internal Revenue Service (IRS) about the accounts of Americans in Israel, under an agreement in principle between the Ministry of Finance and the US Department of the Treasury for implementing the provisions of the Foreign Accounts Tax Compliance Act (FATCA). The agreement regulates the transfer of information to the IRS by the Tax Authority, which will receive the information from Israeli financial institutions.

The information that will be transferred will include details about financial accounts in Israel held by American persons (citizens, Green Card holders, and residents, as well as legal entities in which Americans have a substantial holding). The parties also agreed that, in future, the IRS may notify the Tax Authority about income in accounts of Israelis in the US.

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(YWN – Israel Desk, Jerusalem)