FATCA Clears Way for Mexico Authorities To Investigate Its Citizens’ U.S. Accounts

The Mexican Tax Administration Service (SAT) can access information on thousands of U.S. bank accounts held by Mexican citizens “automatically” under a new collaboration with the IRS.

The agreement is part of a reciprocity mechanism between the U.S. and Mexican tax systems stemming from the Foreign Account Tax Compliance Act (FATCA), through which IRS can access information on U.S. citizens holding taxable bank accounts or financial assets in Mexico.

FATCA also applies to foreign financial assets or offshore accounts held by U.S. citizens around the world.

As SAT authorities have increased information-sharing with IRS, the IRS is doing the same ...