Clearly, the IRS-Holy See the pact has significant meaning for Americans who hold assets in the Pope's favorite bank; especially significant meaning for anyone who has in the past failed to report those holdings to the IRS. The Vatican Bank has not in the past been noted for its transparency (it released its first annual report just two years ago); an attribute that might well have suited some account holders, including members of the clergy, Forbes notes.
As you might recall, FATCA requires global financial institutions to reveal to the IRS American accounts valued above $50,000. Non-compliant banks are to be cut off from U.S. financial markets, which put the squeeze on the institutions to agree to the Treasury Department's terms. More than 100 nations, and now the Holy See, have agreed.
What this latest agreement means is much like what the previous agreements have meant: if you have funds in one of those nations, you are required to file a FBAR (Report of Foreign Bank and Financial Accounts). If you have not previously filed, it is possible you can face civil and even criminal sanctions.
An experienced Cleveland, Ohio, tax attorney can help you sort out the paperwork, enter the voluntary disclosure program, opt for the Streamlined Program, enter negotiations on your behalf with the IRS and much more.