The American Bankers Association (ABA) reportedly is concerned over the proposed Internal Revenue Service regulation that requires reporting of bank deposit interest paid to nonresident aliens, and has asked the Treasury Department to withdraw the proposed tax rules.

In a letter to the Deputy Secretary of the U.S. Treasury, the ABA has expressed particular concern about the language in the proposal that allows the Treasury Department and the IRS, at their discretion, to expand the list of countries for which reporting would be required. *(See web site link below for list of 15 countries currently included)*

REG-133254-02 would require U.S. banks to report to the IRS the amount of bank deposit interest paid to foreign depositors. According to reports from the Washington, D.C.-based Centre for Freedom and Prosperity, the IRS admits that this information is not needed to enforce U.S. tax law. The group maintains that the data is being requested solely for the benefit of foreign governments.

The CFP has been spearheading a Coalition for Tax Competition lobby against the regulation.