Wednesday, January 14, 2015
IRS Opens International Data Exchange Service (IDES)
The IDES, a web-based application that transmits encrypted data, is open for enrollment. Participating foreign financial institutions and host country tax authorities will use IDES to securely transmit information reported on financial accounts held by U.S. persons in foreign jurisdictions. According to the IRS, more than 145,000 financial instructions have registered through the IRS FATCA Registration System. The U.S. has more than 110 intergovernmental agreements, either signed or agreed in substance. IRS Commisioner Koskinen notes that the IDES is a critical component of FATCA implementation, "enhancing the IRS's ability to detect hidden accounts and help ensure fairness in the tax system."