FATCA Client Letters
Information Return Penalty Increases Signed Into Law in Trade Bill
(June 30, 2015)
The price for failing to comply with U.S. tax reporting requirements goes up substantially next year—for the second time in five years. President Obama signed the Trade Preferences Extension Act of 2015 (H.R. 1295) yesterday....
IRS Needs to Clarify Upstream Handoff of Electronic Forms
(June 08, 2015)
As U.S. tax forms have become more complex, many financial institutions and investment funds have turned to electronic systems to collect and store Forms W-8 and W-9 provided by customers and investors....
Old QI Joint Account Rule Extended
(December 31, 2014)
The IRS has extended for one year the joint account provisions of the former qualified intermediary ("QI"), withholding foreign partnership ("WP") and withholding foreign trust ("WT") agreements...
Government Eliminates Year-End Deadline for "In Substance" IGAs
(December 1, 2014)
The IRS and Treasury have eliminated the December 31, 2014, deadline for countries who have agreed "in substance" to FATCA intergovernmental agreements...
Corrections to FATCA Regulations Released One Day Before Effective Date
(June 30, 2014)
The IRS has released corrections to the regulations governing FATCA and other information reporting regimes...
QI Agreement Published
(June 27, 2014)
Hot on the heals of the release of the Form 1042-S instructions, the IRS has released a...
IRS Releases Form 1042-S Instructions for 2014
(June 27, 2014)
The IRS has released the instructions for the Form 1042-S for 2014. This is the form that withholding agents will use...
IRS Releases Form Instructions, FFI Agreement Ahead of July 1 Start of FATCA
(June 25, 2014)
The IRS has released several eagerly anticipated documents just prior to FATCA's July 1 start date...
On the Eve of FATCA, EEI Conference Reveals Last-Minute IRS Thoughts
(June 17, 2014)
As we approach the July 1 effective date for (most of) FATCA, industry professionals from all over the world gathered in New York City for the 26th Annual Forum on International Tax Withholding and Information Reporting...
IRS Announces "Transition Period" Through 2015 for FATCA Enforcement, Other Major Changes
(May 2, 2014)
The IRS has released Notice 2014-33, which contains several major announcements regarding FATCA. Chief among them is that calendar years 2014-2015...
IRS Announces Countries as Having IGAs
(April 2, 2014)
The IRS announced today that it will treat 19 countries that have not yet signed FATCA intergovernmental agreements ("IGAs") as having IGAs in effect.…
Long-Awaited Form W-8BEN-E Finalized
(March 30, 2014)
The IRS has released a final version of Form W-8BEN-E, the main U.S. tax form for identifying non-U.S. entities for FATCA and other U.S. withholding tax purposes…
Final Forms W-8BEN and W-8ECI Released
(March 4, 2014)
The IRS has released final versions of Form W-8BEN and W-8ECI, as well as instructions for the Form W-8BEN....
No Fun For Funds: Much to Do in Response to New Regulations Before July 1, 2014, and Not Just for FATCA!
(March 3, 2014)
On February 20, the IRS issued a weighty 544 pages of new regulations to update the FATCA regulations and "harmonize"...
U.S. Payors Get Harmonized: Form 1099 Reporting and Backup Withholding À La FATCA
(February 26, 2014)
U.S. payors were not ignored by the U.S. Treasury in the "harmonization" regulations issued on February 20, 2014...
No Game Changers in Latest FATCA Regulations: And No Extension So Keep Your Foot on the Gas!
(February 26, 2014)
Foreign financial institutions ("FFIs") are no doubt particularly aghast at the hundreds of pages of guidance...
Qualified Intermediaries After the "Harmonization" Regulations
(February 25, 2014)
Scattered throughout the pages of the chapter 3 and 4 "harmonization" regulations released on February 20, 2014...
The Chapter 3 Regulations Get A Face Lift
(February 25, 2014)
Reading the "modernized and updated" chapter 3 withholding tax and reporting regulations (released February 20) ...
Final FFI Agreement (Rev. Proc. 2014-13)
(December 26, 2013)
Today the IRS released the final FFI Agreement as Revenue Procedure 2014-13, which we have attached for your review...
IRS International Data Exchange Service
(December 23, 2013)
On December 17, 2013, the IRS has announced that it is finalizing requirements for an "International Data Exchange Service ("IDES")." ...
Client Announcement: IRS Announcement 2014-1
(December 13, 2013)
As anticipated in Notice 2013-43, 2013-31 I.R.B. 113, the IRS FATCA registration website was made accessible to financial institutions (FIs) on August 19, 2013, in order for FIs to begin the process of creating accounts and entering registration information. ...
FATCA Holiday Update
(December 13, 2013)
No holiday season would be complete without a FATCA update, and Treasury and IRS officials provided one at the George Washington University Law School Institute for International Taxation on December 12, 2013. ...
Draft FFI Agreement Released; Regulation Changes Previewed
(October 29, 2013)
Today the IRS released a draft FFI Agreement, designated as Notice 2013-69 ("Notice"). The draft FFI Agreement applies to participating FFIs and, as modified by a Model 2 IGA...
IRS Releases "Corrections" to FATCA Regulations
(September 11, 2013)
The IRS has published "technical corrections" to the final FATCA regulations. You will probably want a copy of the final regulations at hand to compare the new language to the old...
Pre-FATCA Forms W-8
(July 29, 2013)
With the delayed publication of new versions of the Form W-8 series and the postponement of most effective dates under the Foreign Account Tax Compliance Act ("FATCA"), ....
IRS Delays FATCA Registration, Withholding, New Account Procedures
(July 12, 2013)
Today the IRS delayed many important aspects of the Foreign Account Tax Compliance Act ("FATCA") in Notice 2013-43 ....
IRS Comments at Recent Conferences
(May 17, 2013)
The Executive Enterprise Institute's 25th Annual Forum on International Tax Withholding and Information Reporting held recently in New York ....
IRS Comments at European Banking Federation ("EBF") FATCA Conference on Feb. 1, 2013
(February 08, 2013)
The IRS appeared by video link at the EBF’s FATCA Conference in Rome and engaged in an extensive Q&A session with the EBF’s legal counsel, John Staples. ....
Final FATCA Regulations Issued
(January 21, 2013)
The U.S. Treasury and the IRS published the final FATCA regulations ("Regulations") on 1/17/13....
United Kingdom Issues Draft FATCA Guidance
(January 03, 2013)
The United Kingdom was the first country to sign a FATCA intergovernmental agreement ("IGA") with the United States ....
U.S. Withholding Agent ("USWA") Audits
(November 26, 2012)
FATCA was clearly the primary topic of the conference, and IRS personnel made it clear that USWAs should expect ....
U.S. Government Releases Model 2 IGA
(November 19, 2012)
Treasury has released Model 2 of the FATCA intergovernmental agreement ("IGA"). Treasury previously published ....
U.S. Treasury Identifies Likely IGA Countries
(November 9, 2012)
The U.S. Treasury has announced the list of countries with which it is discussing Intergovernmental Agreements ....
IRS Announcement 2012-42 Postpones FATCA Dates, Clarifies Grandfathering
(October 25, 2012)
The IRS announced on 24 October that most of the deadlines under FATCA have been postponed by six months ....
US-UK Intergovernmental Agreement
(September 18, 2012)
On September 14, the United States and the United Kingdom announced that they had signed the first ....
Draft Form W-8IMY Raises Many Questions; New Form W-8ECI Also Released
(August 16, 2012)
The IRS has released draft versions of Forms W-8IMY and W-8ECI. Although the drafts are roughly what we expected ....
"Model 1" FATCA Intergovernmental Agreement ("IGA") May Show Direction of Final Regulations
(July 27, 2012)
One of the basic problems with FATCA has been that it imposes obligations on foreign financial institutions ("FFIs") that may contravene ....
IRS Releases FATCA Joint Statements with Japan and Switzerland
(June 22, 2012)
On June 21, 2012, the United States issued joint statements with Japan and Switzerland regarding a new intergovernmental agreement ....
Further Updates from EEI International Withholding Tax Conference Held June 5-6
(June 8, 2012)
The Executive Enterprise Institute's 24th Annual International Tax Withholding Conference held this past Tuesday and Wednesday in New York was an opportunity for the IRS ....
IRS Provides Overview of Foreign Financial Institution ("FFI") Agreement
(June 8, 2012)
IRS representatives provided a long-awaited overview of FFI Agreement registration procedures during the Executive Enterprise Institute's 24th Annual International Tax Withholding Conference ....
IRS Releases Draft Forms W–8BEN for the Foreign Account Tax Compliance Act ("FATCA")
(June 7, 2012)
The IRS yesterday released two unofficial drafts of forms to replace the current Form W–8BEN once FATCA goes into effect. Both forms would be used to certify ....
IRS Hearing on U.S. Foreign Account Tax Compliance Act ("FATCA") Reveals Major Themes
(May 16, 2012)
The IRS hearing yesterday on the proposed FATCA regulations included 20 speakers over three-and-a-half hours. IRS and Treasury Department representatives ....
Final Regulations on U.S. Bank Deposit Interest ("USBDI") Reporting Strengthens U.S. Foreign Account Tax Compliance Act ("FATCA") Position
(May 7, 2012)
The U.S. is hoping to turn FATCA into a multilateral tax reporting regime, and has already announced that five partner agreements are being negotiated; an additional country ....
Cost Basis on Bonds and Options Delayed One Year
(May 3, 2012)
Occasionally, even the IRS shows some mercy. Brokers have been phasing in cost basis reporting for stocks over the last year-and-a-half. This year, in addition to ....
Synopsis and Comments on the Proposed FATCA Regulations
(February 13, 2012)
The U.S. Treasury and IRS published the proposed Chapter 4 FATCA regulations ("Regulations") and the preamble ("Preamble") to them on February 8, 2012 ....
“FATCA Partnerships” – Are They the Cure for FATCA
(February 10, 2012)
The United States announced on February 8, 2012, that it is pursuing “FATCA Partnerships” with France, Germany, Italy, Spain and the United Kingdom. ....
Dividend Equivalent Payments Subject to U.S. Withholding
(January 24, 2012)
The U.S. Treasury and IRS have taken the next step in their crackdown on transactions that avoid the U.S. withholding tax
on U.S. source dividends. Recently issued temporary ....
FATCA Transition Relief: Notice 2011-53
(July 15, 2011)
The IRS has responded to industry and foreign government concerns regarding the January 1, 2013, effective date of the chapter 4 provisions of FATCA ...
Immediate Action Required for Participating FFIs with Respect to Responsible Officer Certifications
(May 6, 2011)
Although FATCA is not effective until January 1, 2013, foreign financial institutions (FFIs) that intend to enter into FFI Agreements
with the IRS (“participating FFIs”) ...
IRS Releases Notice 2011-34 – Second FATCA Notice
(April 11, 2011)
On April 8, 2011, Treasury and the IRS issued a second FATCA notice, Notice 2011-34 (the "Notice") supplementing Notice 2010-60 and
providing new guidance in several ...
IRS Comments on FATCA Notice 2010-60
(September 23, 2010)
Several senior IRS executives addressed the Tax Executives Institute in New York City on September 22, 2010, as part of a panel chaired by John Staples, and commented on FATCA Notice 2010-60 (the “Notice”). ...
First Round of FATCA Guidance Published by IRS
(August 30, 2010)
On Friday, August 27, the IRS published Notice 2010-60
(“Notice”), the first round of guidance under the Foreign
Account Tax Compliance Act (“FATCA”) provisions ...
Notice 2010-46: New Securities Lending/Repo Rules: Notice 2010-46 Replaces
(May 24, 2010)
What is the purpose of Notice 2010-46? The Notice
implements section 871(l)(6) of the Foreign Account Tax
Compliance (“FATCA”) provisions of the HIRE ...
U.S. Withholding and Information Reporting on Dividend Equivalents Begins September 14, 2010
ALERT: Clients should be aware that new section 871(l) enacted
as part of FATCA requires withholding on dividend equivalents
beginning on or after September ...
FATCA is Now Law
(March 18, 2010)
Today, the President signed into law a major revamp of the U.S. withholding tax system that imposes a new 30% withholding tax on certain U.S. source payments ...
Do You Have a 2010 Strategy to Deal with Cost Basis Reporting and FATCA?
(February 8, 2010)
Proposed regulations mandating cost basis reporting (“CBR”)and potential passage of the Foreign Account Tax Compliance Act (“FATCA”) constitute the biggest ...
Likely Consequences to Financial Institutions from the IRS Voluntary Disclosure Program for U.S. Holders of Undisclosed Offshore Accounts
(January 28, 2010)
Over 14,000 U.S. taxpayers trying to escape criminal prosecution have voluntarily disclosed their offshore accounts to the IRS in the last few months. More such...
U.S. Withholding Tax Legislation Introduced on October 27, 2009
Key Congressional tax writers introduced the “Foreign
Account Tax Compliance Act of 2009” (“Act”) on October 27, 2009,
with the U.S. Treasury expressing its support...
Drastic Changes to Qualified Intermediary (“QI”) Program Proposed by Obama
(May 7, 2009)
The Obama Administration has proposed to Congress sweeping changes in the QI program and the way nonqualified intermediaries (“NQIs”) are treated. If these proposals are adopted ...