This Tax Treaty Would Authorize the Automatic Sharing of Americans’ Financial Information With Foreign Governments

In November, lawmakers on the Senate Foreign Relations Committee approved a number of seemingly innocuous tax treaties, which typically pass with little to no fanfare. However, buried among the eight tax treaties passed by the Senate panel is one that could have significant consequences for Americans with foreign bank accounts, as well as foreigners who have an account at a U.S. financial institution. It’s called the Protocol amending the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. If ratified by the Senate, the convention would result in the automatic exchange of individuals’ and businesses’ sensitive financial information between foreign governments and the U.S. More...