U.S. Treasury Broadens Reporting of Deposit Interest Paid to Nonresident Aliens

On July 30, 2002, the Internal Revenue Service issued proposed rules that would extend reporting U.S. bank deposit interest paid to nonresident aliens from Canada to 15 countries. The announcement gives interested persons until November 14, 2002 to comment on the proposed regulations. The proposed regulations withdraw the notice of proposed rulemaking published on January 17, 2001 under the Clinton Administration. The new countries that banks must report bank deposit interest to are Australia, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, and the U.K. Banks in Florida, Texas, and other U.S. states with a large volume of nonresident alien deposits, especially from Latin America, welcomed the revised proposed regulations.