IRS Issues Proposed Rules on Reporting Deposit Interest to Nonresident Aliens

On January 16, 2001, the Internal Revenue Service issued proposed rules that would expand the information reporting requirement for bank deposit interest paid to nonresident aliens recipients who are residents of Canada to the rest of the world. In its background and explanation of the proposed provisions, the Internal Revenue Service explains that in the past the IRS determined that information concerning interest paid on deposits from U.S. bank accounts to nonresident alien individuals who are residents of Canada would be significant in furthering its compliance efforts…[more]