US/World News

Israeli tax office to notify IRS of American incomes in Israel

(JNS.org) The Israel Tax Authority will be notifying the U.S. Internal Revenue Service (IRS) about bank accounts owned by Americans living in Israel. The agreement between the Israeli Ministry of Finance and the U.S. Department of the Treasury is meant to implement the Foreign Accounts Tax Compliance Act (FATCA). Israel will hand over financial information not only of U.S. citizens living in Israel, but also of Green Card holders, residents, and other legal entities in which Americans are significantly invested. Conversely, the IRS agreed to notify Israel of income in accounts of Israelis living in the U.S. FATCA is not limited to Israel. Every financial institution outside of the U.S. must report to the IRS once a year with information about Americans’ accounts.

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