U.S District Court Upholds IRS Regs Requiring Reporting on Interest Paid to NRAs

On January 13, 2014, U.S District Judge James Boasberg of the U.S. District Court in the District of Columbia granted the U.S. Department of Treasury motion for summary judgment in support of the income-reporting requirements issued in 2012 by the Internal Revenue Service, requiring U.S. banks to report the amount of interest earned by accountholders residing in foreign countries. In doing so, Judge Boasberg ruled against the Florida and Texas Bankers Associations.[1]