GOP lawmaker presses Treasury on proposed reporting rule

The letter appears to underscore the difficult choices facing policymakers, as they confront both a struggling economy and the need to battle tax evasion both in the U.S. and offshore.

Under the proposed IRS rule, issued in February, $10 worth of interest income paid to nonresident aliens would have to be reported to the IRS.

{mosads}Lawmakers from both sides of the aisle have pushed back against the proposed rule, with the entire Florida House delegation sending the White House a letter earlier this year and legislation on the matter introduced in both chambers.

A spokeswoman for House Ways and Means said groups and lawmakers not linked to the panel had lodged their concerns about the rule.

In addition to his economic concerns, Boustany also noted that, late in the Clinton administration, Congress had successfully pressed the IRS to withdraw a similar rule.

“It is disappointing to see the IRS once again try to impose unnecessary regulations and costs on U.S. banks,” Boustany wrote.

Florida lawmakers also said the rule could hurt foreigners who live under unstable governments and use U.S. banks because of their security. Sen. Marco Rubio and Rep. Bill Posey, both Florida Republicans, are lead sponsors on the legislation curtailing the rule.

An IRS spokeswoman said the agency would review Boustany’s letter.