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IRS-RUSSIA
AP ENTERPRISE: US planning to use anti-tax evasion law to punish Russia for actions in Ukraine

Reported by: Associated Press
Reported: Tuesday, May 6, 2014 3:05 AM EDT
WASHINGTON


The United States is planning to use an anti-tax-evasion law to punish Russia for its actions in Ukraine, a tactic that could prove to be more costly than sanctions.

The law was passed in 2010, long before the crisis in Ukraine. But it could become a powerful economic weapon.

Starting July 1, the law targets foreign financial institutions that don't agree to share information about U.S. account holders with the Internal Revenue Service.

Russia had been negotiating an information-sharing agreement with the U.S. But after Russia annexed Crimea and was seen as stoking separatist movements in eastern Ukraine, the Treasury Department suspended talks.










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