U.S. suspends tax information exchange with Russian authorities-Treasury

The U.S. Internal Revenue Service has suspended information exchanges with Russia's tax authorities in a bid to hamper Moscow's tax collections and reduce funds available for its invasion of Ukraine, the Treasury Department told Reuters on Tuesday.

Under a 30-year-old tax treaty, the IRS and Russia's Federal Tax Service have cooperated to share information to aid domestic tax collections and enforcement of tax laws in both countries. The IRS can request information about U.S. taxpayers from Russian authorities and vice-versa.

The Treasury said that it has not shared any tax information with Russian authorities since Russia's invasion of Ukraine began on Feb. 24, but the action disclosed on Tuesday formalizes the suspension.