Proposed IRS Nonresident Alien Deposit
Information Reporting Regulation

On January 7th the IRS published REG-146097-09, a proposal to require reporting of deposit interest paid to nonresident aliens. This proposal is a retread of a Clinton-era regulation that CF&P opposed, and was eventually shelved. Since the U.S. does not tax such deposit interest, the IRS has no use for this information, but it has decided to place the interests of foreign tax collectors ahead of the U.S. economy. Should this regulation be finalized, it will drive foreign capital out of the U.S. in favor of jurisdictions respecting financial privacy.

For more background, see CF&P’s Facts About IRS’s Proposed Regulation Reporting of Deposit Interest Paid to Nonresident Aliens.

Opposition from Members of Congress and Regulators

Opposition from Financial Industry

Opposition from Public Policy Groups

See here for all public comments that were submitted.

May 2011 IRS Hearing Testimony

In opposition

In support

October 2011 Congressional Hearing

Archived Webcast of the hearing.

Opposition Testimony

Supporting Testimony


Legislation has been introduced in the 112th Congress to prohibit implementation of the regulation. S.1506 is sponsored by Senator Marco Rubio (R-FL), and H.R. 2568 is sponsored by Representative Bill Posey (R-FL).

The Florida legislature also passed House Memorial 1047, calling on the Treasury Department to withdraw the proposed regulation.

Op-eds and Blogs

News Clips

Related CF&P Content on the Deposit Interest Reporting Regulation:

IRS Reg Press Releases

IRS Reg Videos

IRS Reg Publications

Proposed IRS Interest Reporting Regulation Threatens U.S. Economy

Proposed IRS Interest Reporting Regulation Threatens U.S. Economy

The rule will drive capital investment from the U.S., goes against 90-years of Congressional intent, costs more than it benefits, and threatens the lives and human rights of many investors.

Congressional Hearing on IRS Nonresident Alien Interest Reporting Proposal

Congressional Hearing on IRS Nonresident Alien Interest Reporting Proposal

The proposed IRS non-resident alien interest deposit reporting requirement received an unfriendly reception at an October 27 hearing held by a subcommittee of the House Financial Services Committee. We were on hand to represent CF&P, and noted that the hearing was both a testament to our success in disseminating the many arguments against the proposed regulation, as well as affirmation of the need to continue fighting vigorously against the IRS proposal.

See all IRS Reg Publications >>