Honduras Signs FATCA IGA with the United States

On March 31, 2014, the United States and the Republic of Honduras entered into an Intergovernmental Agreement ("IGA") to implement FATCA. The text of the IGA has just been published by the U.S. Treasury Department. The IGA is a Model 1A (Reciprocal) Agreement under which financial institutions in Honduras will provide information about financial accounts held directly or indirectly by certain U.S. persons to the Honduran Government which will automatically transmit such information to the U.S. IRS. In return, the United States agrees to require financial institutions in the United States to report to the IRS certain information about accounts maintained for residents of Honduras and automatically transmit such information to Honduran tax authorities. The terms of Annex II to the IGA appear to follow closely the terms of Treasury's standard language for Annex II to Reciprocal Model 1A.

See: Honduras FATCA IGA.See also: Cabinet FATCA Materials (for Cabinet subscribers only).For more information, please contact Daniel Mulcahy and Mark Howe.