The Road Ahead: Thoughts on the Recently Released Final FATCA Regulations
Foreign Account Tax Compliance Act (FATCA)
On Thursday, January 17, 2013, Treasury and IRS released the final regulations for the Foreign Account Tax Compliance Act (“FATCA”). Originally codified as part of the Hiring Incentives to Restore Employment Act of 2010, these final regulations culminate a series of interim guidance issued by the Treasury Department and IRS.
The attached document highlights several important takeaways from the final regulations, as well as Deloitte’s point of view on these rules, including the following topics:
- Treasury’s risk-based approach limits institutions, obligations and accounts subject to FATCA;
- Collaboration with foreign governments is a move towards a global information reporting framework
- Registration and technical implementation questions are addressed;
- Provisions on account documentation and due diligence requirements relieve some burden;
- Rules on withholding provide clarity on certain issues but leave others ambiguous;
- Reporting provisions were unchanged; and
- These rules are now final.
Interested in additional details? Review an in-depth analysis of the final regulations prepared by the Deloitte Global FATCA PMO.
As used in this document, “Deloitte” means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.