Treasury and IRS Issued Guidance on FATCA |
Below are selected publications from the Internal Revenue Service (IRS) and Treasure department providing guidance regarding Foreign Account Tax Compliance Act (FATCA). Guidance issues are posted as soon as they are made public. Tell us about issues by contacting us at FATCA@deloitte.com.
January 17, 2013: U.S. Treasury Department and the IRS Released Final Regulations
On January 17, 2013, the U.S. Treasury Department and the IRS have released final regulations on the Foreign Account Tax Compliance Act ("FATCA"). Beginning in January 2013, FATCA requires U.S. and foreign financial institutions to annually identify and report their U.S. account holders.
November 29, 2012: IRS Revises ITIN System and the Impact on Certified Acceptance Agents
On November 29, 2012, the Internal Revenue Service released updated procedures strengthening the Individual Taxpayer Identification Number program (“ITIN”). The updated procedures take effect January 1, 2013 and build on interim procedures announced June 22, 2012 and October 2, 2012.
November 14, 2012: U.S. Treasury announces second model IGA for cooperation to facilitate the implementation of FATCA
On November 14, 2012, the U.S. Treasury announced the second model Intergovernmental Agreement for cooperation to facilitate the implementation of the Foreign Account Tax Compliance Act (FATCA) tax provisions.
November 8, 2012: U.S. Treasury announces countries in active IGA negotiations
On November 8, 2012, the U.S. Treasury announced that it is actively engaged with over 50 countries and jurisdictions to enter into Intergovernmental Agreements (IGAs) for compliance with the Foreign Account Tax Compliance Act (FATCA) tax provisions.
October 24, 2012: IRS Announcement 2012-42
On October 24, 2012 the IRS released Announcement 2012-42 which extends the deadlines for certain FATCA requirements. The Announcement presents new timelines for due diligence, withholding and reporting requirements that are closely aligned with those in the Model IGA, and provides additional guidance on grandfathered obligations. The following are the key timeline changes announced and a graphic charting of the changes.
August 17, 2012: Acceptance of Electronic Forms W-8
In a memo released from the Internal Revenue Service (IRS) Office of Chief Counsel, Associate Chief Counsel Steven A. Musher concluded that under certain circumstances a PDF or fax of a Form W-8 is acceptable under the existing Chapter 3 regulations (Treas. Reg. § 1.1441-1(e)(4)(iv)).
August 16, 2012: IRS releases draft Form W–8ECI
The IRS released a draft version of the newly revised Form W-8ECI which has been modified for FATCA purposes. The new draft form has been published on the IRS website (www.irs.gov/FATCA) along with the previously released Form W-8BEN for individuals, the Form W-8BEN-E for entities, and the Form W-8IMY. Unlike the other recently released forms, the Form W-8ECI has not drastically changed and remains one page.
August 15, 2012: ISDA protocol to tax FATCA derivative transactions
The International Swaps and Derivatives Association, Inc. (ISDA) published the 2012 ISDA protocol that offers market participants an efficient way to amend the ISDA Master Agreement tax provisions to address the effects of FATCA.
August 14, 2012: IRS releases draft Form W–8IMY
The IRS released a draft version of highly anticipated Form W-8IMY which has been modified for FATCA purposes. The new draft form has been published on the IRS website (www.irs.gov/FATCA) along with the previously released Form W-8BEN for individuals, the Form W-8BEN-E for entities, and the Form W-8ECI.
July 26, 2012: Treasury issues first model intergovernmental agreements
In an effort to boost cooperation in countering offshore tax evasion and improve global tax compliance, the United States in conjunction with France, Germany, Italy, Spain and the United Kingdom has released a "Model Intergovernmental Agreement to Improve Tax Compliance and Implement FATCA".
June 22, 2012: IRS announces interim heightened ITIN application standards
The Internal Revenue Service (IRS) announced interim changes to its Individual Taxpayer Identification Number (“ITIN”) application program designed to boost integrity in the process while minimizing taxpayer impact.
June 21, 2012: U.S. Treasury Department announces joint statements with Switzerland and Japan for FATCA implementation
The U.S. Treasury Department has released two additional joint statements with Switzerland and Japan providing frameworks for intergovernmental agreements with the U.S. to facilitate FATCA compliance. The statements were intended to be equivalent; however there are several important differences that are further detailed in the Switzerland/Japan intergovernmental framework comparison tables.
June 6, 2012: IRS Announces details on the FATCA FFI registration process
Internal Revenue Service (IRS) gave participants of Executive Enterprise Institute's 24th Annual International Tax Withholding Conference a detailed look into the FATCA registration process for Foreign Financial Institutions (FFIs).
June 6, 2012: IRS releases draft Forms W–8BEN for Chapter 3 and for the Foreign Account Tax Compliance Act (FATCA)
The IRS released two modified Forms W-8BEN for individuals and entities. The “unofficial” drafts of forms will replace the current Form W-8BEN once FATCA goes into effect. The “unofficial” draft forms have been published on the IRS website (www.irs.gov/FATCA).
May 15, 2012: Transcript of public hearing on proposed regulations
The U.S. Treasury Department has released two additional joint statements with Switzerland and Japan providing frameworks for intergovernmental agreements with the U.S. to facilitate FATCA compliance. The statements were intended to be equivalent; however there are several important differences that are further detailed in the Switzerland/Japan intergovernmental framework comparison tables.
April 16, 2012: Final Regulations on Reporting of Deposit Interest Paid to Nonresident Aliens
On Tuesday, April 16, the IRS released final regulations (TD 9584) requiring certain U.S. financial institutions to report bank deposit interest paid to nonresident aliens in certain countries; expanding the current requirement to only report bank deposit interest paid to Canadian citizens. Along with the final regulations, the IRS released Revenue Procedure 2012-24 listing 78 countries with which the U.S. has bilateral agreements in place.
February 8, 2012: U.S. Treasury Department released proposed regulations on FATCA
The U.S. Treasury department issued proposed regulations for FATCA implementations. Learn more about a deeper look into the potential implications and essential points to consider.
November 2011: Form 8938 Statement of Specified Foreign Financial Assets
If you are a specified person who owns specified foreign financial assets and the value of those assets exceeds an applicable reporting threshold, for tax years beginning after March 18, 2010, you must file, Form 8938 with your annual tax return (including extension).
July 25, 2011 Tax Alert: IRS Releases Revised Notice 2011-53
The IRS released revised Notice 2011-53 that clarifies the application of the phased implementation of Chapter 4 FATCA withholding to include certain payments to Non-Financial Foreign Entities.
July 18, 2011 Tax Alert: FinCEN Announces Optional Electronic FBAR Filing
The U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) announced on July 18, 2011 that Form TD F 90-22.1, Report of “FBAR” can now be electronically filed from the FinCEN website.
July 14, 2011 Tax Alert: IRS Announces FATCA Transition Relief
On July 14, 2011, the IRS released Notice 2011-53 (to be published in Internal Revenue Bulletin 2011-32 on August 8, 2011) that provides long-awaited transitional relief for significant obligations under FATCA.
May 3, 2011 Tax Alert: IRS to send Penalty Notices for Late Filing of Non-Resident Tax Forms
IRS soon will start imposing penalties for late reporting of U.S. source income of foreign persons on Form 1042-S, as well as for erroneous filing of paper versions of the form.
April 8, 2011: IRS Provides Further Guidance on FATCA–Notice 2011-34
The Internal Revenue Service has released the Notice 2011-34, providing further guidance and requests comments on certain priority issues regarding the implementation of FATCA (Chapter 4 of the Internal Revenue Code).
March 15, 2011: IRS Issues Guidance on Interest-Free Rule for Overpayments Due to Chapter 3 and FATCA Withholding
On March 15, 2011, the IRS provided guidance to the field on the 180-day Interest-free Rule for overpayments resulting from Chapter 3 and 4 withholding (SBSE-20-0311-0572).
February 8, 2011: Offshore Voluntary Disclosure Initiative
The IRS is offering people with undisclosed income from offshore accounts an opportunity to participate in a new, voluntary disclosure initiative in order to get current on their tax returns. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) will be available only through Aug. 31, 2011.
January 6, 2011: FATCA: IRS Issues Proposed Rules on Reporting Interest Paid to Foreign Individuals
On January 6, 2011 the U.S. Treasury Department issued proposed regulations that would require the reporting of U.S. bank deposit interest paid to all foreign individuals.
December 7, 2010: Electronic Deposit Requirements for Qualified Intermediaries (QIs)
On December 7, the IRS issued an important message—following up on November 2010 proposed regulations for electronic deposit requirements, about rules on the Qualified Intermediary News section of the IRS website. The IRS indicated that new electronic deposit requirements will apply to withholding qualified intermediaries (QIs) that deposit $2,500 or more per quarter.
October 18, 2010: Treasury Issues Final Stock Basis Reporting Guidance
On October 3, 2008, Congress expanded the scope of the broker reporting obligations on Form 1099-B to require brokers to report the adjusted cost basis of securities sold and whether any gain or loss with respect to the security is short-term or long-term. The legislation applies to certain “covered securities” and will be phased in gradually over a three year period beginning in 2011.
October 13, 2010: Treasury official comments on analysis of accounts under Notice 2010-60
On October 13, 2010, Michael Plowgian, an attorney-adviser in Treasury’s Office of International Tax Counsel, spoke to a group of bankers and their advisers in New York. Lee Sheppard, a reporter from Tax Analyst summarized Mr. Plowgian’s comments.
Foreign Account Tax Compliance: Initial guidance issued on Chapter 4 (code sections 1471-1474)
On August 27, 2010, Treasury and the IRS issued initial, and lengthy, guidance under new §§1471-1472 of the Internal Revenue Code (“chapter 4”).1 Chapter 4 is designed to prevent U.S. persons from evading U.S. tax by holding income-producing assets through accounts at foreign financial institutions (“FFIs”) or through other foreign entities (non-financial foreign entities, or “NFFEs”).
IRS Issues Notice 2010-60 which provides preliminary guidance regarding priority issues involving the implementation of FATCA
On August 27th, the Internal Revenue Service issued Notice 2010-60, “Notice and Request for Comments Regarding Implementation of Information Reporting and Withholding Under Chapter 4 of the Code.”
March 18, 2010: Legislative text new Chapter 4
Legislative FATCA text of the statute for new Chapter 4
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