HIRE ACT, Part 2: If Privacy Isn't Your Top Concern, Will Your Transfers Still Be Affected?
Editor's Note: In the February 2011 issue of Hemispheres, international business attorney Joel Nagel wrote about provisions in a 2010 jobs bill called the HIRE Act that could affect your ability to move funds abroad outside the U.S. The provisions require both U.S. and foreign banks to withhold 30 percent of any transfer to foreign financial institutions that don’t meet United States standards for information sharing, and remit that percentage to the Internal Revenue Service (IRS) as a tax payment. To get the payment refunded when you file your U.S. tax return, you have to show that the funds transferred were already taxed.
