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December 8, 2003
The Honorable John Snow
Secretary of the Treasury
Department of Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Dear Secretary Snow,
We are writing to express our concerns about a proposed IRS regulation (REG-133254-02) that would force U.S. banks to report the deposit interest they pay to nonresident aliens. The regulation is not needed to
enforce our tax laws, but it would impose high costs. Our banking system has attracted more than $1.75 trillion from overseas. This money is very important to job creation, and helps finance home mortgages, auto
loans, and small business expansion. Nonresident alien bank accounts are only a slice of that total, to be sure, but any loss of capital is going to undermine the economy's performance.
We also are concerned
that the IRS is overstepping its proper role. For more than 80 years, Congress has sought to attract capital to our financial system by not taxing nonresident alien bank deposit interest and not requiring the
reporting of this income. The IRS certainly has the right to propose changes in tax policy, but the agency should not use its rulemaking power to overturn existing law.
We ask that this regulation be permanently withdrawn and look forward to your response.
Sincerely,
Philip M. Crane
Member of Congress
Mark Foley
Member of Congress
Wally Herger
Member of Congress
Jim Ramstad
Member of Congress
Jennifer Dunn
Member of Congress
Mac Collins
Member of Congress
Phil English
Member of Congress
Ron Lewis
Member of Congress
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