August 04, 1990
Agreement for Simultaneous Examinations
of Tax Returns Between
the United States & Mexico
WASHINGTON - The Internal Revenue Service today announced a formal working
arrangement covering simultaneous examinations of tax returns
between the United States and Mexico.
Simultaneous examinations make it possible for tax treaty and
tax information exchange agreement (TIEA) partners to exchange
information and coordinate the tax treatment of individuals and
businesses with activities in more than one country.
The TIEA between the U.S. and Mexico, in effect since Jan. 18,
1990, authorizes exchanges of information to carry out the TIEA's
purposes and to prevent tax evasion. Information obtained in the
exchanges is used to supplement the information taxpayers and others
submit to the IRS. Specific terms of the TIEA protect
confidentiality of taxpayer information exchanged by both countries.
Under terms of the working arrangement announced today, the
U.S. and Mexico will meet to plan and coordinate their audits. Each
country will then separately examine the taxpayers under their
jurisdiction, but during each stage of the examination, both
countries will exchange information in accordance with the TIEA.
This is the twelfth such simultaneous examination working
arrangement the United States has formalized with another country
and the first pursuant to a TIEA. The others are with Canada, the
United Kingdom, France, Germany, Italy, Japan, Sweden, Australia,
the Philippines, Norway, and Korea.
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