Americans already hatred a Internal
Revenue Service. If Congress has a way, a rest of a world
may shortly follow.

In an act of hubris that could cost banks around a globe
billions of dollars, Congress has destined a IRS to levy new
rules requiring unfamiliar financial companies to establish who
among their accountholders is an American citizen.

The Foreign Account Tax Compliance Act, a beast of a
provision extrinsic into a jobs check and enacted in 2010, will be
phased in starting in 2014. Known as FATCA, it aims to build on
recent successful crackdowns on Americans stealing their money
overseas.

The law’s goals are laudable, though it is simply too costly,
too fatiguing and too unreal to be effective.

FATCA will need all “foreign financial institutions” –
a strikingly extended nomination — to make agreements with the
IRS and announce that of

Article source: http://www.bloomberg.com/news/2012-01-23/new-tax-rules-harass-foreign-bankers-for-little-in-return-view.html