The IRS may request tax-related information about a U.S. citizen or resident’s foreign bank or other accounts. According to the IRS, the action is in accordance with the Foreign Account Tax Compliance Act (FACTA), and applies even if the U.S. doesn’t have a tax treaty or other agreement to exchange tax information. The FATCA generally requires withholding agents to withhold tax on certain payments to a foreign financial institution (FFI) unless the FFI has entered into an agreement with the U.S. to report certain information on U.S. accounts, among other things. (IRS Program Manager Technical Advice 2021-001)
