It has been
DRAMATICALLY tightened up these last few years.
IoM banks have to declare interest paid to IRS for account holders with US addresses (amongst others).
Even if you provide a UK address, the IoM bank will inform HMRC who will be quite happy to share any info with IRS routine enquiries on e.g. US citizens.
I believe the above rules were implemented for the largest 6 banks but will be extended across all banks in due course and
retrospectively.
Osama Bin Laden really has a lot to answer for tax-wise!
Frankly, my advice would be not to get cute with the IRS. Once they get you they will be all over you 'til your dying day... and beyond!
