On September 23, 2014, Brazil signed a FATCA IGA. The agreement is a Model 1 agreement, meaning that Brazilian financial institutions will report information about U.S. customers' accounts to the Secretariat of the Federal Revenue of Brazil, which will then send that information to the IRS. The agreement is reciprocal, meaning that the IRS will report information about Brazilian customers' accounts at U.S. financial institutions to the Brazilian tax authority. This reciprocity is made possible by new regulations requiring U.S. banks to collect more information about their account holders, which this blog covered here.
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