Jersey, Guernsey and the Isle of Man have all signed intergovernmental agreements with the US government to implement the Foreign Account Tax Compliance Act.

Jersey, Guernsey and the Isle of Man have all signed intergovernmental agreements with the US government to implement the Foreign Account Tax Compliance Act.

The three Crown Dependencies signed the agreement with the US ambassador to the UK, Matthew Barzun, at the US Embassy in London on Friday.  

Under the Model 1 agreement, the three islands will be required to report tax information about US account holders directly to their tax authorities, which will relay that information to the IRS. 

It is a reciprocal agreement and the Crown Dependencies expect information to be exchanged from 2015.

The islands said that the agreement provides evidence of their commitment to fighting tax evasion and their support of current international initiatives aimed at enhancing transparency and exchange of information for tax purposes.

Jersey, Guernsey and the Isle of Man all signed similar intergovernmental agreements with the UK in October.

Earlier this month, the US also signed intergovernmental agreements with the Cayman Islands and Costa Rica to implement FATCA.