should one report NRE accounts to IRS

Got some good info from TAx treaty :

Tax on Interest

Article 11 provides rules for source and residence country taxation of interest.
Paragraph 1 grants to the residence State the right to tax interest derived and beneficially
owned by its residents.
Paragraph 2 grants to the source State the right to tax the interest payment. However, if
the beneficial owner of the interest is a resident of the other Contracting State, the amount of the
tax is limited to:
(a) 10 percent of the gross amount of the interest that is paid on a loan granted by
a bank carrying on a bona fide banking business or by a similar financial institution
(including an insurance company); and
(b) 15 percent of the gross amount of the interest in all other cases.
The term "beneficial owner" is not defined in the Convention; it is, instead, defined by
domestic law of the Contracting States. A nominee or agent which is a resident of a Contracting
State may not claim the benefits of this Article if the interest is received on behalf of a person
who is not a resident of that Contracting State. However, interest received by a nominee for the
benefit of a resident would qualify for the benefits of this Article.
 
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