October 19, 2010: Tax Executives Institute (TEI)


Tax Executives Institute, Inc. (TEI) submitted comments to the Department of the Treasury and to the Internal Revenue Service (IRS) in response to Notice 2010-60.

TEI, which has 7,000 members representing 3,000 of the leading global corporations, requested clarification of numerous items as well as offered recommendations to assist with the implementation of FATCA. Some of the recommendations offered include:

  • Expanding exemption for certain holding companies to include any foreign holding company of operating companies, other than those in banking or part of financial institutions;
  • Exempting foreign retirement plans that  are eligible for the benefits of a US income tax treaty from withholding;
  • Exempting from withholding, payments made to related entities that are currently reported on Forms 5471 and 5472;
  • Excluding rents, salaries, and other FDAP incurred in payor’s ordinary course of trade or business from withholding since these are already reported under Chapter 3;
  • Providing a de minimis exception for FATCA withholding, similar to the $600 exception provided under IRC Section 6041;
  • Permitting electronic copies of Forms W-8BEN to be submitted and removing the requirement to obtain paper copies of this form; and
  • Delaying effective date of withholding on payments by NFFEs for two years to provide enough time for them to comply.

A copy of the letter, as originally published by Tax Analysts, is attached.

Contact FATCA Leader for further information.

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