The United States and Barbados Come to Terms on an IGA
When many taxpayers in the United States think about potential tax havens to stash away their money, there are generally a few countries that come to mind: Switzerland, the Cayman Islands, or even Luxembourg. But the United States doesn’t want to leave any stone unturned in its search for U.S. residents that have undeclared accounts overseas. Last month, the U.S. and Barbados officially entered into an Intergovernmental agreement that aims to create a level of transparency between the IRS and financial institutions in the eastern Caribbean. This development echoes a familiar warning to any taxpayers that have accounts that remain undisclosed to the IRS: come forward now by filing an FBAR, or face the consequences.