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Tax Shelter Reporting and Disclosure Requirements  Form

Tax Shelter Reporting and Disclosure Requirements Form

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Instructions and help about dtf 686 type

the IRS collects vast amounts of data on all aspects of our financial lives the purpose is to assess and collect all tax imposed by law and data collection doesn't stop at the border the irs's collection of our foreign assets and income data continues to expand while U.S persons are required to disclose foreign Financial accounts and interests in foreign entities on annual filings the law also requires foreign financial institutions to disclose annually the foreign accounts of their U.S clients so there are Protections in place if you fail to disclose a foreign account the IRS may receive that information from the foreign financial institution directly this is how the U.S government structures the tax data collection laws requiring self-reporting but also compelling intermediaries to provide the IRS with a financial information that it needs to detect either tax Under reporting or assets that can be used to collect tax debts

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