U.S. Internal Revenue Service requires American Express to provide information on Dutch card accounts

4 April 2017

american expressThe U.S. Internal Revenue Service is seeking to obtain data from American Express by serving the payment card processing company the Jon Doe summons under the bilateral agreement between the United States and the Netherlands. The IRS wants AmEx to provide information on payment cards of Dutch residents having accounts outside the Netherlands as a part of the effort to combat tax evasion in the two countries.

Within the framework of cooperation between the US and the Netherlands the IRS requested the information to establish whether citizens of the Netherlands living outside their homeland comply with the taxation regulations.

In late March the federal court in Texas authorized the IRS to seek the information from American Express by serving the Jon Doe summons, as the tax authority knows no names of the people that may have evaded the tax payment. Spokesperson for the IRS says that using their existing tools and agreements they can address the problem of tax evasion common for both nations.

The court ruling is another step in common forces between the United States and the government of the Netherlands to fight hiding of revenue from tax authorities. The treaty between the two countries provide for cooperation in sharing the information required to enforce tax legislation of each nation.

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