The draft FATCA regulations have recently been released by the IRS and include a number of relief provisions.
Their inclusion is intended to ease FATCA’s administrative burden in certain specified areas.
Some of the key points in the draft regulations:
- Still impacts across all industry sectors
- New categories of FFIs that are to be deemed compliant and subject to reduced FATCA obligations
- Introduction of new de-minimis thresholds for account identification in some areas
- Changes to the timings of certain provisions such as reporting of income and gross proceeds
- Potential amendments to the transfer of information to the IRS using existing information exchange treaties
- Modification to the rules on passthru payment
Despite these relief provisions businesses should not sit back given that FFIs will want to submit their FATCA application to the IRS by 30 June 2013.