Russia and the US suspend tax information exchange
As part of its effort to hamper Moscow's ability to collect taxes and fund its war against Ukraine, the U.S. Internal Revenue Service suspended information exchanges with Russia's tax authorities, the Treasury Department told Reuters on Tuesday.
Tax information has been shared between the IRS and Russia's Federal Tax Service under a 30-year-old tax treaty to assist domestic tax collection and tax law enforcement in both countries. Russian authorities can request information about U.S. taxpayers from the IRS, and the IRS can request information from Russian authorities.
The suspension, which stops short of suspending the entire tax treaty that allows American companies and expats in Russia to claim tax credits against Russian taxes, was not immediately clear as to how much revenue might be lost to Russia.
U.S. Senators Rob Portman and Ben Cardin had urged that step in a letter to President Joe Biden.
7 April 2022