A proposed asset-tracking rule could affect international visitors in the United States who own U.S. life insurance policies or U.S. annuities.
The Biden administration wants to require U.S. financial institutions to send the IRS account balance information for any accounts maintained by "foreign persons."
The account balance total would have to include the cash value of the foreign persons' life insurance policies and the surrender value of their annuities.
The proposal probably would not affect permanent residents, or non-citizens who have authorization to live in the United States permanently, but it could affect international students, international scholars and others who may live in the U.S. for years but are still classified as foreign persons.
The proposal could take effect for tax returns filed after Dec. 31, 2023.
The Department of the Treasury describes the proposal in the general explanations report, or "Greenbook," for President Joe Biden's federal budget proposal for fiscal 2023.
The department put the financial institution information reporting proposal in a section about modernizing tax rules.
