Analysis of Final FATCA Regulations

Size: px
Start display at page:

Download "Analysis of Final FATCA Regulations"

Transcription

1 Analysis of Final FATCA Regulations January 2013 kpmg.com

2 For more information about the FATCA regulations, contact a tax professional with KPMG LLP: General information: Laurie Hatten-Boyd lhattenboyd@kpmg.com Carl Cooper carlmcooper@kpmg.com Banking: Mark Price mhprice@kpmg.com Mark Naretti marknaretti@kpmg.com Mindy Schmidt mtschmidt@kpmg.com Funds: Emma Preston epreston1@kpmg.com David Richardson drichardson@kpmg.com Deanna Flores djflores@kpmg.com Insurance companies: Craig Pichette cpichette@kpmg.com Fred Campbell-Mohn fcampbellmohn@kpmg.com Jean Baxley jbaxley@kpmg.com kpmg.com ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. NDPPS

3 On January 17, 2013, the U.S. Department of Treasury (Treasury) and the Internal Revenue Service (IRS) released the final regulations for the Foreign Account Tax Compliance Act (FATCA). Since the enactment of FATCA in March 2010, Treasury and the IRS have issued several rounds of preliminary guidance, including proposed regulations. The recently released final regulations have been much anticipated by taxpayers that expect to be affected by the new FATCA withholding and reporting regime, particularly in light of the looming January 1, effective date. On January 21, 2013, KPMG released a high level analysis of key changes in the final rules. See TaxNewsFlash-United States: FATCA KPMG s initial analysis of final regulations This document contains a more comprehensive analysis of the changes, by section, incorporating salient points from the initial release. Background In an effort to curb perceived tax abuses by U.S. persons with offshore bank accounts and/or investments, Congress passed broad-sweeping legislation intended to combat offshore tax evasion by such persons. Specifically, FATCA, signed into law on March 18, 2010, incorporates a new Code chapter 4 reporting regime that is designed to achieve this stated intent by imposing a severe withholding tax on certain foreign entities that refuse to disclose the identities of these U.S. persons. The statute, while providing very general information with respect to the new withholding and reporting rules, deferred much of the administration and implementation of the new regime to Treasury and the IRS. While uncertainty remains (given the adoption of an intergovernmental alternative approach to FATCA, which many countries are expected to follow, and the lack of final withholding certificates, reporting forms, and the need for the updated regulations under chapters 3 and 61), the final regulations take affected entities one step closer toward the ability to implement their FATCA compliance programs. The Preamble to the final regulations provides that Treasury and the IRS carefully considered stakeholders comments in an effort to develop an 1 December 31, 2013, for Participating Foreign Financial Institutions (PFFI). 1

4 implementation approach that achieves an appropriate balance between fulfilling the important policy objectives of chapter 4 and minimizing the burdens on stakeholders. Significantly, Treasury and the IRS stated they have carefully considered the hundreds of comments received and established three avenues for addressing the principal concerns burdens, legal impediments, and technical implementation. Their methodology for addressing the first avenue was to adopt a risk-based approach to effectively address policy concerns, eliminate unnecessary burdens and, when possible, build on existing practices and obligations. To address the local impediments, Treasury and the IRS collaborated with other governments to develop the alternative intergovernmental approach via intergovernmental agreements (IGAs) that eliminate those conflicts of law while achieving the intent of the statute. Treasury and the IRS addressed the third avenue by stating it will simplify the process for foreign financial institutions (FFIs) registering and executing the FFI Agreement. Detailed analysis As mentioned above, in finalizing the FATCA rules, Treasury and the IRS made efforts to minimize burdens, when possible, and to address the issue of local law conflicts. Below is a comprehensive, section-by-section, analysis detailing certain changes made. Reg. section Withholding requirements on withholdable payments to certain FFIs There were several significant changes associated with the rules set forth in Reg. section Namely, the expansion of the grandfathered obligation rules, clarification relating to the election by a PFFI to be withheld upon, the reservation on a prior rule relating to withholding on proceeds, and the rules relating to withholding agents when they have a lack of knowledge regarding the payment. Grandfathered obligations The most notable change to this section is the expansion of the grandfathered obligation rules. Pursuant to the statute, a withholding agent would not be required to impose FATCA s penal withholding on any payments, including the gross proceeds from any disposition, related to an obligation that was outstanding on March 18, The proposed regulations extended this relief by excluding, from the definition of 2

5 withholdable or passthru payment, any payment made under an obligation outstanding on January 1, The final regulations extend this date further to include any obligation outstanding on January 1, The regulations also incorporate additional relief set forth in Announcement (namely, an extension of this relief for: (1) obligations the payments of which will be captured under section 871(m) that are executed on or before the date that is six months after the date such obligations will be subject to those rules; and (2) any obligation the payment of which will be captured under the foreign passthru payment rules if the obligation is executed on or before the date that is six months after the date the final regulations defining that term are filed with the Federal Register). The final regulations make clear that the withholding relief also applies to any agreement requiring a secured party to make a payment with respect to, or to repay, collateral posted to secure a grandfathered obligation. Other changes to the grandfathered rules include coverage for life insurance contracts that are payable upon the death of the insured. The proposed regulations did not include such contracts within those having the requisite definitive term. In addition, to alleviate concerns voiced by withholding agents, the final rules provide that a withholding agent who is not the issuer of an obligation may, absent actual knowledge or reason to know otherwise, rely on a written statement by the issuer regarding whether the obligation qualifies for the grandfathered treatment. In addition, the withholding agent is only required to treat a modification as disqualifying the obligation from meeting the requirements for withholding relief, if it knows or has reason to know such modification was material. For this purpose, the withholding agent will be treated as having reason to know if it receives a disclosure from the issuer. As a final point, as indicated above, it is important that a withholding agent understand that this exception relates to withholding only. A withholding agent that is a PFFI would still be required to identify the account and report, when required. Election to be withheld upon The final regulations parallel the proposed regulations regarding what withholding agents can make an election to be withheld upon (i.e., a PFFI or RDCFFI that is a: (1) nonqualified intermediary (NQI), nonwithholding foreign partnership (NFP) or nonwithholding foreign trust (NFT); or (2) a QI that has not assumed chapter 3 withholding responsibilities). Specific to this, a withholding foreign partnership (WP) and a withholding foreign trust (WT) or QI that has assumed chapter 3 withholding responsibilities is not permitted to make an election to be withheld upon. 3

6 Interestingly, however, the regulations also prohibit a QI branch of a U.S. financial institution from making such an election. Given Treasury and the IRS s stated intent to follow the chapter 3 rules, this appears to be a drafting error. The final regulations further clarify that, similar to the chapter 3 rules, the electing QI can make this election on an account by account basis. Finally, the regulations have reserved whether this election will also be permissible on the payment of gross proceeds. Brokers (delivery versus payments) For brokers, it is interesting to note that the final regulations removed (and reserved) the withholding provision relating to payments of gross proceeds. Specifically, the rule in the proposed regulations would have required each broker, including those that pay proceeds in a delivery versus payment or cash on delivery transaction, to withhold on the proceeds by reference to the FATCA status of the payee. This was an unusually onerous requirement based on the nature of these transactions (very high volume with no current processes or procedures in place to document the next broker in the chain or to withhold or report on the payment). Because this provision is reserved and not eliminated entirely, it may be premature for potentially affected brokers to find much comfort. Lack of knowledge Many withholding agents raised concerns regarding a lack of knowledge of facts surrounding a payment when they are in the chain of payment but only following payment instructions. For example, the payment instruction may provide that the payment is a dividend payment on a U.S. security but the withholding agent in the chain does not know any other facts relating to the payment (e.g., whether withholding is required and, if so, whether the originating withholding agent has already imposed withholding). To address this issue, the proposed regulations cross-referenced a provision in chapter 3 that eliminates the requirement to withhold when the withholding lacks certain knowledge. While the final regulations do not change this rule, they do eliminate the cross reference and, instead, set forth the precise rule. The problem with the provision is the continued exception for payments with respect to stock or other securities. It is unclear why relief is not available for this type of payment. As indicated in the example, above, it is very possible that the withholding agent does know the payment is made with respect to stock but nevertheless lacks the requisite knowledge of other salient facts related to the payment (Who is the beneficial owner? Is withholding required? Has it already been imposed? etc.) 4

7 Further, it is unknown whether this exception would apply when the payment was with respect to stock but the withholding agent did not know that when the payment was made (for example, when the payment instruction does not contain any information relating to the type of payment). As drafted, it would appear that the exception would still not apply, and thus, the withholding agent that failed to impose withholding would remain liable. Finally, adopting another similar concept from the chapter 3 rules, the final regulations provide that when the withholding agent is unable to determine the source or character at the time of payment, it must treat the payment as a U.S. source withholdable payment. Causing some unnecessary confusion, however, is the example relating to unknown source (the example addresses a circumstance when the withholding agent does not know the source of services income because it does not know whether the services were performed in the United States). The example is confusing because the regulations make clear that payments for services are not subject to chapter 4. See Reg. section below. On a positive note, the regulations do provide that, when this does occur, the withholding agent can place the withholding associated to the undeterminable payments in escrow for a period of one year before it must pay them to the IRS. Given the breadth of the presumption rule in these circumstances, this procedure should help to eliminate unnecessary refund claims (i.e., the withholding agent should be able to resolve many instances of improper withholding within that year). Reg. section Payee identification Treasury and the IRS made many concessions relating to the payee identification rules, including loosening certain account documentation requirements. They also addressed issues with forms that are not completed properly, due diligence and presumption rules, electronic submission of documentation, record retention, and the use of third-party documentation. As indicated below, however, some of the changes are likely to cause problems for withholding agents. Loosening certain account documentation requirements (including validity periods) The final regulations contain much needed account documentation relief in various instances. For certified deemed compliant FFIs (other than the new category of sponsored FFI), retirement funds, nonprofit organizations, and excepted NFFEs, the final regulations provide that a withholding agent must obtain a withholding certificate with the proper certifications. Unlike the proposed regulations, however, the withholding agent is no longer required to also obtain financial statements, letters from counsel, etc., to corroborate the claims made. 5

8 The final regulations also include additional relief for payments made with respect to an offshore obligation (generally a requirement to obtain only written statements when the account holder does not receive payments of U.S. source FDAP and written statements and documentary evidence when it does). 2 Significant to this, the term documentary evidence has been expanded to include certain credit reports and certain information contained in government websites, in addition to the usual government issued documents. For offshore obligations, the final regulations have eliminated the requirement that a written statement include a penalties of perjury statement where there is no payment of U.S. source FDAP. For certain U.S. account holders, the regulations permit a withholding agent to rely on documentary evidence in lieu of a Form W-9. At first glance, this appeared to be a substantial departure from the proposed regulations that had effectively eliminated the so-called eyeball test and required a withholding agent to presume certain exempt recipients (i.e., corporations and financial institutions) to be NPFFIs unless a Form W-9 was on file. Because withholding agents are not required to obtain Forms W-9 from these entities under the current withholding and reporting regime, this would have required very expensive remediation efforts. It is significant to point out, however, that this new provision references a withholding agent s ability to eyeball an exempt recipient and not eyeball a U.S. person other than a specified U.S. person. Specifically, when the withholding agent can determine the payee is a U.S. person through documentary evidence and an exempt recipient through the documentation and/or the so called eyeball test (e.g., the entity has a clear corporate designation in it name) the withholding agent can treat the payee as a U.S. person that is other than a specified U.S. person. Given this, an entity may, in fact, be a privately held U.S. corporation (which under the FATCA rules, is a specified U.S. person) and never reported upon. Consequently, it appears inevitable that Treasury and the IRS will be modifying the definition of an exempt recipient as it relates to a corporation to include only those corporations that are publicly traded when they harmonize the existing withholding and reporting regulations (chapters 3 and 61) to the FATCA regulations. Thus, the relief is not likely to be as broad as withholding agents had hoped. The final regulations do provide some welcomed documentation relief for owner documented FFIs (ODFFIs). First, the reporting statement and documentation requirement have been scaled back to require information relating only to direct or indirect owners that are individuals and specified U.S. persons (looking through all entity owners for such persons). Second, the reporting statement is 2 For this purpose, the definition of payment made with respect to an offshore obligation means a payment made outside the United States, within the meaning of Reg. section (e), with respect to an offshore obligation. This definition is significant because, pursuant to those rules, a payment is not made outside the United States under those rules where the payment is processed and mailed from within the United States notwithstanding the fact that it is physically mailed to a foreign address (or credited to a foreign bank account). 6

9 no longer required to contain allocation information and is no longer required to be updated annually. Third, the final regulations provide additional relief for offshore accounts when the ODFFI s account balance is $1 million or less. For those accounts, the withholding agent may treat the account as held by an ODFFI if it has collected documentation sufficient to identify any owner that is an individual or specified U.S. person, the documentation obtained satisfies its AML due diligence requirements, the withholding agent has sufficient information to report all specified U.S. persons, and the withholding agent does not know or have reason to know the entity has any contingent beneficiaries, unidentified owners, NPFFI owners, or that any NPFFIs or specified U.S. persons own a debt interest in excess of $50,000 in the payee (other than a specified U.S. person that the withholding agent has sufficient information to report). Another area of significant relief is found in the final regulation s provisions relating to documentation validity. Under the proposed regulations, absent a change in circumstances, the validity period for most documentation was the year signed (year presented for documentary evidence) plus three full calendar years. For documentary evidence with an expiration date, the validity period ended on that expiration date, even if the date was before the end of the threeyear period. This rule was very onerous because, under anti-money laundering (AML) and know your customer (KYC) regulations, a withholding agent is rarely required to refresh documentation, even if it has expired. The final regulations provide, as the general rule, the three plus rule outlined above. Of particular interest, however, are the numerous new exceptions. Specifically, absent a change in circumstances, the following documentation (among others) will have an indefinite validity period: Withholding certificate or statement from a PFFI or registered deemed compliant FFI (RDCFFI) that has furnished a Global Intermediary Identification Number (GIIN) that has been verified pursuant to those requirements; A Form W-8BEN provided by an individual claiming non-u.s. status if it is supported by documentary evidence and there are no current U.S. addresses or U.S. telephone number(s) that are the only telephone number(s) on file; A withholding certification from any of the following entities claiming non- U.S. status (if such entity is the payee and the withholding certificate is furnished with documentary evidence establishing the entity s non-u.s. status): o Exempted retirement fund or an entity wholly owned by such fund o Excepted non-financial group entity o 501(c) entity 7

10 o Non-profit organization o Nonreporting IGA FFI o Territory financial institution that agrees to be treated as a U.S. person o NFFE whose stock is regularly traded (and an affiliate thereof) o An active NFFE (that is monitored through AML due diligence) o Sponsored FFI A withholding certification from an intermediary, flow-through entity, or U.S. branch (not including the underlying owner documentation or withholding statement); A withholding certificate, written statement, or documentary evidence furnished by a foreign government, government of a U.S. territory, foreign central bank (including the Bank for International Settlements), international organization, or an entity that is wholly owned by any such entities; and Documentary evidence that is generally not renewed (e.g., articles of incorporation). In addition, the list is expanded for offshore obligations: A Form W-8BEN or documentary evidence provided by an individual claiming non-u.s. status if the withholding agent does not have current U.S. addresses, U.S. telephone number(s) that are the only telephone number(s), or standing instructions to make a payment into the United States on file; A withholding certificate, written statement, or documentary evidence provided any of the following entities (if such entity is the payee): o Exempted retirement fund or an entity wholly owned by such fund o Excepted non-financial group entity o 501(c) entity o Non-profit organization o Nonreporting IGA FFI o Territory financial institution that agrees to be treated as a U.S. person o NFFE whose stock is regularly traded (and an affiliate thereof) o An active NFFE (that is monitored through AML due diligence) o Sponsored FFI A withholding certificate of an ODFFI; 8

11 A reporting statement of an ODFFI with account balance $1 million or less (if no contingent beneficiaries or designated class of unidentified beneficiaries); A withholding certificate of a passive NFFE or excepted territory NFFE if the account balance does not exceed $1 million (and the withholding agent does not know or have reason to know the entity has contingent beneficiaries or designated classes of unidentified beneficiaries). Accommodations for substitute forms The final regulations clarify the requirements for substitute forms and permit the withholding agent to create a substitute form in foreign languages. They also also permit the person completing the form to do so in a language other than English (as long as the withholding agent will translate the content upon IRS request). While the certifications must be the same as IRS forms, the penalties of perjury statement is not required if the withholding agent also has documentary evidence supporting the payee s non-u.s. status. Interestingly, and likely an insight into the certifications on the final IRS forms, the regulations require the certifications on substitute forms to include a certification that the payee will notify the withholding agent within 30 days if there is a change in circumstance that causes the claim on the form to be incorrect. Issues relating to incomplete/incorrect forms Another important provision relating to documentation addresses inconsequential errors. Specifically, the regulations provide that an inconsequential error will not invalidate a tax form if the withholding agent has other account file information that conclusively cures the error. Troubling, however, is an example that describes a country abbreviation on a form provided by an individual. The example concludes that the withholding agent can cure the abbreviated address if it has government-issued identification for the person that reasonably matches the abbreviated country on the form. The example is troubling because, both informally at withholding conferences and on audit, the IRS has generally taken the position that an abbreviated country on a Form W-8 does not invalidate the form as long as the withholding agent can easily discern the country from the abbreviation (e.g., U.K.). In addition, because the form is only being used to establish non-u.s. status, if additional documentary evidence is to be required, government issued identification from any non-u.s. country should suffice. The regulations also make clear that a form or statement is not invalid if completed by a director of an entity. Withholding agents and the IRS have experienced a long-standing disagreement with respect to who should be able to complete a withholding certificate for an entity and, in particular, acceptable titles on the certificate s capacity line. While this provision provides some limited relief, 9

12 the issue may be theoretical in the future, assuming the IRS sticks with the new capacity check box in lieu of the prior capacity line which required the signer to include an actual title on the form. Due diligence The due diligence rules, relating to when a withholding agent has reason to know that documentation is invalid or otherwise incorrect, are modeled very much after the existing chapter 3 rules. Specifically, the general rule provides that a withholding agent has reason to know that a claim made on documentation is invalid when a reasonably prudent person in the position of a withholding agent would question the claim made. As in chapter 3, the rules continue with specific fact patterns when a withholding agent would have such reason to know that a claim of foreign status was incorrect and the requisite curative documentation that it must obtain before it can accept the payee s original claim. These so-called red flags are very similar to those set forth in the chapter 3 rules (e.g., U.S. address, or, for offshore obligations, standing instructions to pay inside the United States). In addition, the chapter 4 rules add two more flags that withholding agents should be looking for when a payee claims foreign status U.S. birthplace and U.S. telephone numbers. In the proposed regulations, there had been one very important distinction between the two sets of rules clear safe harbor language in the chapter 3 rules. Specifically, for withholding agents that are financial institutions, the chapter 3 due diligence rules limit the circumstances of reason to know to those specifically stated in the regulations. The final regulations fix this inconsistency and make clear that a withholding agent has reasons to know that a claim of foreign status is invalid or incorrect only if there is one of more of the listed U.S. indicia associated with the account. 3 It is interesting to note that when the curative documentation requires a written explanation, the final regulations provide that such a written explanation can take the form of a checklist provided from the withholding agent. Historically, the IRS has resisted such checklists as meeting the standards for a written explanation for purposes of chapter 3 audits. One unsettling point relating to a withholding agent s reason to know is a new provision relating to account holders that are PFFIs or DCFFIs. The final regulations provide that a withholding agent has reason to know that such an account holder is a limited branch or limited FFI if it has an address for the account holder outside the country in which the entity claims to be a PFFI or DCFFI or if it makes a payment to an address outside such country. This is 3 It is important to note that this reason to know relates to a claim of foreign status only. Withholding agents continue to have other due diligence responsibilities relating to the chapter 4 status claimed by an entity. Specific to this, the final regulations make clear that a withholding agent continues to be responsible for confirming a particular chapter 4 claim with all account information obtained, including, for example, any credit reports or financial statements that are obtained in the account opening process. 10

13 notwithstanding the fact that the withholding agent has valid documentation and a GIIN that has been verified against the IRS published list. Paramount to this new reason to know, there appears to be no cure available. Consequently, the withholding agent will be required to impose withholding as if the account holder is an NPFFI. Given the nature of the financial industry, payment instructions to accounts in other countries is not unusual. As a result, it is anticipated that this new rule will result in a vast amount of unnecessary withholding. Presumption rules Unlike the QI regime, the final regulations make clear that withholding agents, including PFFIs, can choose to follow the presumption rules in lieu of obtaining documentation. [In the QI Agreement, a QI is in default of its agreement if it has invalid or incorrect documentation for a significant number of direct account holders.] Notwithstanding this general statement, there is a confusing provision relating to when a withholding agent can reject a form (including an IRS form). Specifically, the regulations provide that a withholding agent who rejects a form must provide an acceptable substitute form within five business days of receipt. This requirement does not appear to comport with the general rule that a withholding agent can choose not to accept documentation. The final regulations also include a new presumption for payments to U.S. branches of foreign financial institutions when the withholding agent has the branch s EIN as well as the GIIN of the branch s head office. In such circumstances, the withholding agent may presume that the branch is the payee and that the income is ECI. A final note as it relates to the presumption rules is the treatment for certain Passive NFFEs account holders of PFFIs. While not explicitly stated in the presumption rules, the modification to the definition of recalcitrant account holders changes the application of those rules. Specifically, when a PFFI maintains an account for a Passive NFFE and has documentation for the Passive NFFE but does not have the requisite certification that the entity has no substantial U.S. owners (or the name, address, and TIN of such owner(s)), it must treat the account holder as a recalcitrant account holder and not a NPFFI. Conversely, when the withholding agent is a U.S. withholding agent or a PFFI that does not maintain an account for the Passive NFFE (e.g., a PFFI that has entered into a swap contract with the Passive NFFE), the final rules retain the requirement to treat the entity as an NPFFI. This ensures that withholding will be imposed when the PFFI makes a payment where there is no account (the rules do not require an account for withholding on payments to an NPFFI). This modification was presumably made to align the final regulations with the IGAs, when possible. [The IGAs cross reference Code section 1471(d)(6) for the definition of a recalcitrant account holder, which includes an account holder when the withholding agent is unable to obtain the information necessary to determine 11

14 whether the account is a U.S. account.] The change is baffling, though, because the treatment of a recalcitrant account holder under the IGA is very different from the treatment under the regulations. In addition, it seems to result in unnecessary complexity without a corresponding benefit to the IRS. In fact, had the government retained the rule in the proposed regulations, it would have received withholding and, in certain circumstances, payee specific reporting, regardless of whether the PFFI maintained an account or not. As drafted, it will never know the name of the Passive NFFE when the PFFI does maintain an account because reporting for recalcitrant account holders is never payee specific. Electronically submitted forms The Preamble indicates that a withholding agent will be permitted to obtain documentation electronically (i.e., via facsimile or scanned documents transmitted via ). The final regulations, however, cross reference the section 1441 regulations that permit electronically submitted forms. Currently, those rules would not permit a withholding agent to accept a form via facsimile or one that was otherwise scanned into an electronic system for submission (because those forms do not contain the requisite electronic signature). It is anticipated that the 1441 regulations that are cross-referenced will be updated to permit such transmissions in the near future. This is something that withholding agents have requested since the implementation of the current withholding regime in 2001 and should allow them to simplify documentation processes a great deal. Record retention Similar to the proposed regulations, the final regulations require a withholding agent to retain copies of documentations for as long as it is relevant to the determination of tax liability. There was a slight change in the rules for the retention of documentary evidence. The withholding agent must note the date the document was received and reviewed (the proposed regulations would have also required the withholding agent to note the person by whom the document was received and reviewed). A more significant change relates to the record retention for documentary evidence associated with offshore accounts. The final regulations permit a withholding agent to retain such a document via a file notation (i.e., type of document reviewed, date reviewed, document s identification number (if any), and whether the document contained any U.S. indicia) in lieu of a scanned or paper copy if it is not required to retain a copy pursuant to its AML due diligence requirements. A similar rule is provided for pre-existing accounts, with the elimination of the U.S. indicia notation. 12

15 Multiple accounts, universal accounts, shared accounts, agents, and thirdparty data providers Pursuant to the final regulations, a withholding agent must document accounts on an account-by-account basis. There are, however, numerous exceptions. First, a withholding agent may rely on documentation provided by the account holder relating to another account if both accounts are held at the same branch and both accounts are treated as consolidated obligations (obligations the withholding agent treats as a single obligation for purposes of the preexisting account rules when a preexisting account holder opens a new account and the withholding agent is able to rely on the due diligence performed on the preexisting account or in order to share documentation). Another exception permits withholding agents in the same expanded affiliated group to rely on the documentation obtained by other members if they treat the accounts within the group as consolidated obligations and share a universal account system (unique identifier required). Finally, withholding agents within an expanded affiliated group may rely on documentation obtained by other members if they treat the accounts as consolidated obligations and share an account system, electronic or otherwise. It is important to note that any U.S. indicia that are discovered with respect to an account that is treated as a consolidated obligation is imputed to the other accounts so treated. Because of this, the shared system must, among other requirements, permit a withholding agent that discovers such indicia to relay the information to others within in the shared group. Similar to the proposed rules, the final regulations permit a withholding agent to engage an agent to carry out its FATCA obligations. In those instances, the withholding agent remains liable for the actions of its agent. One notable point is the final regulations reference to a paying agent. When an agent takes on certain responsibilities, its status rises to that of a paying agent. This is significant because a paying agent is a withholding agent in its own right and must report the payments it makes as a paying agent under its own name and EIN. Pursuant to current IRS guidance, an agent becomes a paying agent when it agrees to withhold and report a payment. The regulations, though not entirely clear, appear to depart from this. Instead, the regulations seem to indicate that an agent rises to the level of a paying agent simply by agreeing to make the payment. An example relating to this point is confusing. In the example, a foreign withholding agent hires a U.S. person to act as its paying agent. The example concludes that both are withholding agents and are liable for the paying agent s 13

16 failures, if any. Under the current withholding regime, however, this isn t quite true. Withholding agents in a chain are each liable, but the liability relates to what they do and what they know at the time they control the payment. Thus, as a withholding agent in the chain of a payment, the foreign person making the payment to its U.S. paying agent should be responsible for the documentation of its U.S. paying agent absent actual knowledge or reason to know that paying agent would not fulfill its responsibilities. The paying agent, in turn, has the responsibility for the payment that it then controls. In other words, pursuant to the current rule relating to multiple withholding agents in a chain, the prior withholding agent s responsibility should end when it relinquishes control unless it knows or has reason to know that the next withholding agent in the chain will not fulfill its responsibilities. The FATCA rules cross-reference the withholding agent rules in the 1441 regulations. Until Treasury and the IRS release the harmonizing chapter 3 rules, this issue will remain unclear. As in the proposed regulations, the final regulations permit a withholding agent to rely on a repository of documentation obtained by an agent for use by multiple withholding agents. To meet the requirements of such a shared system, any withholding agent that uses the system must have easy access to the documentation and, more importantly, must be able to easily transmit data to the system when it become aware of facts that may affect the reliability of documentation. In this, every withholding agent accessing the system has reason to know that documentation is invalid or incorrect when one withholding agent obtains conflicting data. Another important, and new, documentation provision relates to third-party data providers. The regulations provide that a withholding agent may rely on documentation obtained by a third-party data provider if: (1) the third-party data provider collects documentation sufficient to determine an entity s chapter 4 status pursuant to the account identification rules set forth in the regulations; (2) the third-party data provider is in the business or providing credit of business reports to unrelated customers and the chapter 4 status claimed by an entity is verified against the other information it has for such entity; (3) the third-party data provider must notify each entity providing chapter 4 data that it is required to notify the third-party data provider within 30 days of a change in circumstance and, pursuant to the contract between the third-party data provider and its subscriber, the third-party data provider must notify the subscriber of such changes; and (4) the subscriber must be able to provide documents obtained by the third-party data provider to the IRS upon request (and will remain liable for any associated underwithholding related to invalid documentation). One significant distinction between the third-party data provider rules and the shared system outlined above is that the subscribers using a third-party data provider are not required to notify the provider of any conflicting data it may have in its files. 14

17 Bulk mergers/transfers Addressing a significant issue when a withholding agent acquires another, the final regulations permit the acquirer to rely on the documentation (or copies of documentation) obtained by transferor, if unrelated, for a maximum period of six months (or earlier if it discovers the documentation is unreliable prior to the end of the transition period). At the end of the six-month period, the acquirer is permitted to rely on the chapter 4 classification assigned by the transferor only if the documentation it has for the account holder, including the documentation provided by the transferor, supports the classification assigned. If it does not, the acquirer must apply the presumption rules. Further, if the acquirer makes future payments to such an account, it must impose withholding (including any withholding that relates to payments made during the six-month transition period). While the relief is an important step, the six-month period may be inadequate where the acquisition is sizable. Reg. section FFI Agreement The final regulations brought myriad additions and modifications to Reg. section , the section specifically relating to the FFI Agreement. Effective date The first modification relates to the effective date of the FFI Agreement. The new effective date for those entities that timely execute the FFI Agreement will be December 31, The requirements for account identification (new onboarding and the commencement of the clock ticking for pre-existing accounts) and the earliest possibility for any withholding remain January 1, Presumably, this one-day shift is attributable to future reporting requirements for certain accounts maintained by the PFFI on December 31, U.S. branches of PFFIs The final regulations confirm the treatment of U.S. branches, a topic much of which had only been relayed informally in the past. Specifically, the regulations make clear that a U.S. branch of a compliant head office (PFFI or RDCFFI) can elect to be treated as a U.S. person. When the U.S. branch does elect such treatment, the final rules provide that it will satisfy its withholding obligations on accounts that are held by U.S. nonexempt recipients by satisfying its backup withholding obligations under section 3406(a). As indicated above, it is anticipated that we will see a modification to those rules (specifically, the definition of a nonexempt recipient) as Treasury and the IRS 15

18 modify the regulations under chapters 3 and 61 in an effort to harmonize them to chapter 4. Given this, the new responsibilities for U.S. branches that will elect to be treated as U.S. persons remain somewhat uncertain. Mergers/bulk acquisitions Similar to other withholding agents, the final regulations provide some account identification relief to PFFIs that acquire accounts in unrelated mergers or bulk acquisitions. Under these new rules, the PFFI may treat the acquired accounts as pre-existing accounts, using the acquisition date instead of the FFI agreement effective date as the benchmark for the time limitations. When the PFFI (including a U.S. branch of such entity) acquires another PFFI, a DCFFI, or a U.S. financial institution that has applied the relevant FATCA due diligence procedures to the acquired accounts, the PFFI acquiring such account may, in certain instances, rely on the chapter 4 status previously assigned to the account and will not be considered to have any of the stated reasons to know unless and until there is a change in circumstances related to the account. To avail itself to this relief: (1) the acquirer must not have actual knowledge that the chapter 4 status assigned to an account is unreliable or incorrect; (2) the acquirer tests a sample of the acquired accounts to determine whether the chapter 4 status assigned is correct (this is necessary for purposes of the required responsible officer certifications, discussed below); (3) for accounts acquired by a PFFI or RDCFFI (other than a U.S. branch treated as a U.S. person), the acquirer PFFI obtains a written representation that the requisite due diligence procedures have been applied; and (4) for entity accounts acquired by a U.S. financial institution (or U.S. branch of a PFFI or RDCFFI treated as a U.S. person), the U.S. financial institution made a withholdable payment to the account prior to the date of transfer and, for acquired individual accounts, the U.S. financial institution made a reportable payment (as defined under section 3406(b)) to the account prior to the transfer. Expansion of preexisting accounts additional account As indicated above, the final regulations provide some narrowly tailored relief relating to account identification when a withholding agent, including a PFFI, maintains a preexisting account for an account holder, the account holder opens a new account and, pursuant to the withholding agent s AML procedures, the withholding agent is not required to obtain additional documentation with respect to the new account. The relief is narrowly tailored because Treasury and the IRS have placed considerable requirements on the applicability of the new provision. Namely, the new account and the preexisting account must be treated as a single account for purposes of not only AML due diligence but, also, for purposes of account aggregation and applying the due diligence reason to know standards. Given this, many withholding agents may not have adequate systems 16

19 in place to meet such requirements and, consequently, will not be in a position to avail themselves to the relief. Bearer shares Prior FATCA guidance did not address the issue of bearer shares. This was of particular concern for many funds because many had issued bearer shares in the past and, thus, would not be in a position to identify accounts within the prescribed time limits. The Model 2 IGA first mentioned the issue of bearer shares by stating that an investment fund, that otherwise qualified, would be treated as deemed compliant notwithstanding the fact that it had bearer shares as long as it: (1) has not issued, and does not issue, any physical shares in bearer form after December 31, 2011; (2) performs the due diligence procedures (and reports, where necessary) with respect to any such share when presented; and (3) has implemented policies and procedures to ensure that such shares are redeemed as soon as possible and, in any event, prior to January 1, Because of the nature of the shares (i.e., bearer), it is unclear how a fund could ensure that all such shares would be redeemed by January 1, The final regulations provide that the account identification procedures for a preexisting obligation in bearer form will be performed at the time the share is presented for payment. Notwithstanding the fact that the obligation is preexisting, however, the PFFI must perform the new account identification procedures at that time. This new provision is vital for any PFFI that has outstanding bearer shares. Without it, it could never attain FATCA compliance as it relates to account identification. In addition, under the final guidance, an otherwise qualifying fund that issued bearer shares in the past can nevertheless qualify as a registered deemed compliant qualified collective investment vehicle or restricted fund if it: (1) ceased issuing interests in bearer form after December 31, 2012; (2) retires all such interests upon surrender, (3) implements policies and procedures to redeem or immobilize all such interests prior to January 1, 2017; and (4) identifies the account prior to payment (under the new account procedures) and agrees to withhold and report as if it were a PFFI. As indicated above, the 2017 cut off date to redeem or immobilize may continue to make this exception unavailable to anyone with prior issued bearer shares. Insurance-related provisions The final regulations also brought numerous changes relating PFFIs and the insurance industry. First, when a PFFI maintains an account that is an employersponsored group cash insurance contract or a group annuity contract, the regulations provide that it may treat the account as a non-u.s. account until an 17

20 amount is payable to an employee/certificate holder or beneficiary if the employer has provided a certificate that no employees/certificate holders are U.S. persons. For this purpose, the contract must be one that is issued to an employer and covers 25 or more employees/certificate holders, the employees/certificate holders are entitled to the cash value of the contract and to name beneficiaries for the benefit payable upon their death, and the aggregate amount payable to any one employee/certificate holder does not exceed $1 million. Additional relief is provided with respect to the requirement to identify beneficiaries of certain cash value life insurance contracts. Here, the PFFI may presume that a beneficiary (that is not the owner) is a non-u.s. person unless it has actual knowledge or reason to know otherwise. Finally, the regulations make clear that an insurance company that has made a section 953(d) election is not treated as a U.S. person for purposes of FATCA if it is not licensed to do business in the United States. The regulations also make clear that an insurance company that is an FFI cannot make an election to report under section 6047(d) in lieu of the reporting requirements set forth in section 1474 and the FFI Agreement. This is because the reporting under those provisions does not apply to contracts that are issued by an insurance company that is not licensed to do business in the United States. A limited accommodation is provided if such insurance company reports the sum of a cash value or annuity contract s account balance or value as well as any distributions under the contact on a Form 1099-R (treating each U.S. account as an individual and citizen of the U.S.). Limited FFIs The limited FFI concept was adopted to help certain FFIs within expanded affiliated groups. Treasury and the IRS have consistently stated that all FFIs within an expanded affiliated group must either be a PFFI, DCFFI, or otherwise exempted from the rules. Understanding that certain FFIs operate in jurisdictions that prohibit disclosures of account holder information, of the closure of recalcitrant accounts, etc., Treasury and the IRS devised a transition rule for limited FFIs. Specifically, the limited FFI rule would apply when an FFI within an expanded affiliate group is legally prohibited from either: For U.S. accounts reporting, closing, or transferring to a U.S. financial institution, PFFI, or reporting Model 1 FFI; or For recalcitrant accounts holders and accounts held by NPFFIs blocking, closing, or transferring to a U.S. financial institution, PFFI, or reporting Model 1 FFI. Pursuant to this concept, if an FFI in such a jurisdiction qualifies as a limited FFI, the IRS will permit the other FFIs within its expanded affiliated group to become 18

Analysis of FATCA Regulations for Foreign Financial Institutions

Analysis of FATCA Regulations for Foreign Financial Institutions Analysis of FATCA Regulations for Foreign Financial Institutions Withholding, Information Reporting February 2014 kpmg.com FATCA - Regulations on information reporting by foreign financial institutions;

More information

US FATCA FAQ and Glossary of FATCA terms

US FATCA FAQ and Glossary of FATCA terms US FATCA FAQ and Glossary of FATCA terms These FAQs are intended to aid you in your understanding how FATCA affects your relationship with UBS. This is not intended as tax advice. If you are uncertain

More information

This notice provides guidance to foreign financial institutions (FFIs) entering into

This notice provides guidance to foreign financial institutions (FFIs) entering into Part III Administrative, Procedural, and Miscellaneous FFI agreement for Participating FFI and Reporting Model 2 FFI Notice 2013-69 SECTION I. Purpose. This notice provides guidance to foreign financial

More information

IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3

IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3 IRS releases updated QI agreement providing guidance for QIs under FATCA and Chapter 3 July 3, 2014 In brief On June 27, 2014, the Internal Revenue Service (IRS) released Revenue Procedure 2014-39 which

More information

Instructions for the Requester of Forms W 8BEN, W 8BEN E, W 8ECI, W 8EXP, and W 8IMY (Rev. July 2014)

Instructions for the Requester of Forms W 8BEN, W 8BEN E, W 8ECI, W 8EXP, and W 8IMY (Rev. July 2014) Instructions for the Requester of Forms W 8BEN, W 8BEN E, W 8ECI, W 8EXP, and W 8IMY (Rev. July 2014) Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For

More information

How To Apply To Fataca

How To Apply To Fataca The Foreign Account Tax Compliance Act (FATCA) Applying FATCA to Funds and other Collective Investment Vehicles Jonathan Sambur Partner + 1 202 263-3256 jsambur@mayerbrown.com February 2013 Mayer Brown

More information

FATCA: Challenges and insights for insurance companies

FATCA: Challenges and insights for insurance companies FATCA FATCA: Challenges and insights for insurance companies The Foreign Account Tax Compliance Act (FATCA) is a complex reporting and withholding regime enacted to encourage U.S. persons to disclose their

More information

FATCA Regulations Training Session #3

FATCA Regulations Training Session #3 Transaction Services July 2013 FATCA Regulations Training Session #3 Update on Changes to New Account Due Diligence Based on Final Regulations Debbie Mercer-Miller Director and U.S. Securities Country

More information

SIGHT FATCA. line of FREQUENTLY ASKED QUESTIONS FOR FUND MANAGERS TABLE OF CONTENTS. July 2012 OVERVIEW... 2

SIGHT FATCA. line of FREQUENTLY ASKED QUESTIONS FOR FUND MANAGERS TABLE OF CONTENTS. July 2012 OVERVIEW... 2 line of SIGHT FATCA FREQUENTLY ASKED QUESTIONS FOR FUND MANAGERS TABLE OF CONTENTS July 2012 OVERVIEW... 2 NORTHERN TRUST S ROLES AND RESPONSIBILITIES... 7 PREVENTING FATCA WITHHOLDING... 8 A PARTICIPATING

More information

ACTION: Notice of proposed rulemaking and notice of public hearing. SUMMARY: This document contains proposed regulations under chapter 4 of

ACTION: Notice of proposed rulemaking and notice of public hearing. SUMMARY: This document contains proposed regulations under chapter 4 of [4830-01-p] DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1 and 301 [REG-121647-10] RIN 1545-BK68 Regulations Relating to Information Reporting by Foreign Financial Institutions and

More information

ACFCS FATCA One Day Seminar June 21, 2013. Role and Application of Technology in FATCA

ACFCS FATCA One Day Seminar June 21, 2013. Role and Application of Technology in FATCA ACFCS FATCA One Day Seminar June 21, 2013 Role and Application of Technology in FATCA Chris Corrie VP, Global Trade and Treasury D&B Washington, DC Jerry Khan Senior Manager, Tax KPMG New York, NY Combating

More information

FATCA FAQs: Frequently asked questions on the Foreign Account Tax Compliance

FATCA FAQs: Frequently asked questions on the Foreign Account Tax Compliance www.pwc.com/us/fatca July 2011 FATCA FAQs: Frequently asked questions on the Foreign Account Tax Compliance Act 1. What is FATCA? FATCA is an acronym for The Foreign Account Tax Compliance Act (FATCA)

More information

How do the final FATCA regulations affect asset managers?

How do the final FATCA regulations affect asset managers? How do the final FATCA regulations affect asset managers? February 6, 2013 In brief The long-awaited final Foreign Account Tax Compliance Act (FATCA) regulations have arrived and, while much analysis still

More information

Sight FATCA. line of. Frequently asked questions. table of contents. November 2, 2012

Sight FATCA. line of. Frequently asked questions. table of contents. November 2, 2012 line of Sight FATCA Frequently asked questions FOR INSTITUTIONAL INVESTORS table of contents November 2, 2012 PART I PROPOSED REGULATIONS and IRS Announcement OVERVIEW 1. What is the objective of the Foreign

More information

BURT, STAPLES & MANER, LLP SUITE 850 1250 EYE STREET, NW WASHINGTON, DC 20005-3922 PHONE (202)783-1500 - FACSIMILE (202)783-1523 www.bsmlegal.

BURT, STAPLES & MANER, LLP SUITE 850 1250 EYE STREET, NW WASHINGTON, DC 20005-3922 PHONE (202)783-1500 - FACSIMILE (202)783-1523 www.bsmlegal. BURT, STAPLES & MANER, LLP SUITE 850 1250 EYE STREET, NW WASHINGTON, DC 20005-3922 PHONE (202)783-1500 - FACSIMILE (202)783-1523 www.bsmlegal.com TO: FROM: RE: Distribution Burt, Staples & Maner, LLP Final

More information

UPDATED INFORMATION ON USE OF FORM W-8IMY (REVISION DATE FEBRUARY 2006) BEFORE JANUARY 1, 2015

UPDATED INFORMATION ON USE OF FORM W-8IMY (REVISION DATE FEBRUARY 2006) BEFORE JANUARY 1, 2015 UPDATED INFORMATION ON USE OF FORM W-8IMY (REVISION DATE FEBRUARY 2006) BEFORE JANUARY 1, 2015 This Form W-8IMY (revision date April 2014) reflects the changes made in the Foreign Account Tax Compliance

More information

How does the recent FATCA guidance affect asset managers?

How does the recent FATCA guidance affect asset managers? from Asset Management How does the recent FATCA guidance affect asset managers? April 10, 2014 In brief On February 20, 2014, the US Department of the Treasury (Treasury) and the Internal Revenue Service

More information

FATCA -- Overview and Onboarding

FATCA -- Overview and Onboarding IIB Annual Seminar on U.S. Taxation of International Banks June 17-18, 2014 FATCA -- Overview and Onboarding Chip Collins, UBS AG (Moderator) John Sweeney, IRS Tara Ferris, IRS Jon Lakritz, PwC Danielle

More information

FATCA The Foreign Account Tax Compliance Act

FATCA The Foreign Account Tax Compliance Act FATCA The Foreign Account Tax Compliance Act July 2012 July 2012 Table of Contents 1. Classification 2 2. Due Diligence 7 3. Withholding Payments 14 4. Reporting 21 What You Need to Take Away From This

More information

The Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) The Foreign Account Tax Compliance Act (FATCA) I. OVERVIEW A. What is FATCA? FATCA, as it is colloquially known, refers to Chapter 4 of the US Internal Revenue Code, which was enacted by the Hiring Incentives

More information

How To Comply With The Foreign Account Tax Compliance Act

How To Comply With The Foreign Account Tax Compliance Act PRESENTATION ON THE FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) FOR CONSULTATIONS WITH THE INDUSTRY Prepared for the Meeting with ECCU Non-Bank Financial Institutions February 2014 EASTERN CARIBBEAN CENTRAL

More information

Foreign Account Tax Compliance Act (FATCA) Intergovernmental Agreement Model 1 Latest Updates and Requirements

Foreign Account Tax Compliance Act (FATCA) Intergovernmental Agreement Model 1 Latest Updates and Requirements Foreign Account Tax Compliance Act (FATCA) Intergovernmental Agreement Model 1 Latest Updates and Requirements - Regulatory Timeline - Overview of Requirements - Registration Process Naidira Alemova-Goeres

More information

Further Guidance on the Implementation of FATCA and Related Withholding Provisions

Further Guidance on the Implementation of FATCA and Related Withholding Provisions Further Guidance on the Implementation of FATCA and Related Withholding Provisions Notice 2014-33 I. PURPOSE This notice announces that calendar years 2014 and 2015 will be regarded as a transition period

More information

Below is a summary of the main issues discussed during our April 28 meeting, and our recommendations for resolving them.

Below is a summary of the main issues discussed during our April 28 meeting, and our recommendations for resolving them. Donna J. Fisher Senior Vice President Tax, Accounting & Financial Management (202) 663-5318 DFisher@aba.com September 11, 2015 Theodore D. Setzer International Business Compliance - Foreign Payments Program

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA) What We Know and Don t Know Nicole Tanguy, Citigroup Inc. November 30, 2011 What is FATCA? The State of the Law New Chapter 4 of the Internal Revenue Code (IRC)

More information

Key Aspects of the FATCA Regime

Key Aspects of the FATCA Regime TAX CLIENT PUBLICATION May 2012... Key Aspects of the FATCA Regime... The US withholding and information reporting regime under the Foreign Account Tax Compliance Act of 2010 ( FATCA ), 1 when implemented,

More information

Foreign Account Tax Compliance Act ( FATCA )

Foreign Account Tax Compliance Act ( FATCA ) Chio Lim Audit Tax Advisory Tax Update Foreign Account Tax Compliance Act ( FATCA ) 2 May 2014 Contacts: Cindy Lim Partner, International Tax Division T +65 6594 7852 cindylim@rsmchiolim.com.sg Chow Khen

More information

Withholding of Tax on Nonresident Aliens and Foreign Entities

Withholding of Tax on Nonresident Aliens and Foreign Entities Department of the Treasury Internal Revenue Service Publication 515 Cat. No. 15019L Withholding of Tax on Nonresident Aliens and Foreign Entities For use in 2013 Contents What's New... 1 Reminders... 2

More information

IRS Issues Final FATCA Regulations

IRS Issues Final FATCA Regulations IRS Issues Final FATCA Regulations The United States Internal Revenue Service (IRS) has issued long-awaited final regulations (the Final Regulations) under the Foreign Account Tax Compliance Act (FATCA).

More information

IRS Releases Updated Qualified Intermediary (QI) Agreement

IRS Releases Updated Qualified Intermediary (QI) Agreement International Bank Tax Newsletter IRS Releases Updated Qualified Intermediary (QI) Agreement Authored by Melinda T. Schmidt On June 27, 2014, the Internal Revenue Service (IRS) released Revenue Procedure

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA) What We Know and Don t Know Nicole Tanguy, Citi Phil Garlett, Burt, Staples & Maner LLP 11-12 July 2011 What is FATCA? The State of the Law New Chapter 4 of the

More information

The IRS Issues Final FATCA Regulations

The IRS Issues Final FATCA Regulations The IRS Issues Final FATCA Regulations On January 17, 2013, the Internal Revenue Service (IRS) released 544 pages of final regulations implementing the provisions of the Foreign Account Tax Compliance

More information

Application Procedures for Qualified Intermediary Status Under Section 1441; Final Qualified Intermediary Withholding Agreement

Application Procedures for Qualified Intermediary Status Under Section 1441; Final Qualified Intermediary Withholding Agreement Part III Administrative, Procedural, and Miscellaneous Application Procedures for Qualified Intermediary Status Under Section 1441; Final Qualified Intermediary Withholding Agreement Rev. Proc 2000-12

More information

FATCA and Insurance. Ninth Annual International Insurance Training Program

FATCA and Insurance. Ninth Annual International Insurance Training Program Ninth Annual International Insurance Training Program FATCA and Insurance Stewart Kasner, Baker & McKenzie LLP, Miami Lyubomir Georgiev, Baker & McKenzie Zurich Four Points by Sheraton Zurich, Switzerland

More information

Foreign Account Tax Compliance Act ( FATCA )

Foreign Account Tax Compliance Act ( FATCA ) May 2011 Foreign Account Tax Compliance Act ( FATCA ) www.steptoe.com Table of Contents Overview Definition of Foreign Financial Institution ( FFI ) FFI Agreement with IRS Preexisting Individual Accounts

More information

Foreign Account Tax Compliance Act (FATCA) Frequently Asked Questions

Foreign Account Tax Compliance Act (FATCA) Frequently Asked Questions Foreign Account Tax Compliance Act (FATCA) Frequently Asked Questions For Momentum Retail (excluding Momentum Wealth International) General FATCA questions 1. What is FATCA? FATCA is the acronym for the

More information

Foreign Account Tax Compliance Act FATCA Onboarding Requirements for Payees U.S. Financial Institutions

Foreign Account Tax Compliance Act FATCA Onboarding Requirements for Payees U.S. Financial Institutions Paris New York London Rome Milan Casablanca Dubai Amsterdam Brussels Hong Kong Singapore Foreign Account Tax Compliance Act FATCA Onboarding Requirements for Payees U.S. Financial Institutions June 13,

More information

IRS regulations The Foreign Account Tax Compliance Act (FATCA) and its impact on the US foreign withholding tax and reporting system

IRS regulations The Foreign Account Tax Compliance Act (FATCA) and its impact on the US foreign withholding tax and reporting system IRS regulations The Foreign Account Tax Compliance Act (FATCA) and its impact on the US foreign withholding tax and reporting system What is FATCA? The Foreign Account Tax Compliance Act (FATCA) is a new

More information

The Impact of FATCA on U.S. and Non-U.S. Private Equity & Hedge Funds Closing the distance

The Impact of FATCA on U.S. and Non-U.S. Private Equity & Hedge Funds Closing the distance The Impact of FATCA on U.S. and Non-U.S. Private Equity & Hedge Funds Closing the distance Global Financial Services Industry Overview The Foreign Account Tax Compliance Act ( FATCA ) regime signifies

More information

Spotlight on the US. Christopher Brown US Tax Desk, KPMG In the UK

Spotlight on the US. Christopher Brown US Tax Desk, KPMG In the UK Spotlight on the US Christopher Brown US Tax Desk, KPMG In the UK 24 June 2016 Agenda 1 2 3 4 5 6 7 8 FATCA: An overview Definition of FIs under FATCA FATCA reportable accounts and account holders Remediation

More information

Fiduciary and Investment Risk Management Association 28 th National Risk Management Training Conference

Fiduciary and Investment Risk Management Association 28 th National Risk Management Training Conference Fiduciary and Investment Risk Management Association 28 th National Risk Management Training Conference Foreign Account Tax Compliance Act: Considerations for Trusts April 30, 2014 Michael Shepard Principal

More information

Foreign Account Tax Compliance Act

Foreign Account Tax Compliance Act www.pwc.co.za Foreign Account Tax Compliance Act 7t h March 2012 An overview The Foreign Account Tax Compliance Act provisions which were included in the Hiring Incentives to Restore Employment ( HIRE

More information

Global FS Tax Newsflash How do the proposed FATCA regulations impact Insurers?

Global FS Tax Newsflash How do the proposed FATCA regulations impact Insurers? Global FS Tax Newsflash How do the proposed FATCA regulations impact Insurers? February 20, 2012 How do the proposed FATCA regulations impact Insurers On February 8th, the highly anticipated proposed regulations

More information

The Treasury Department and IRS Release Updates to Final FATCA Regulations as well as Coordination Regulations Closing the distance

The Treasury Department and IRS Release Updates to Final FATCA Regulations as well as Coordination Regulations Closing the distance The Treasury Department and IRS Release Updates to Final FATCA Regulations as well as Coordination Regulations Closing the distance Global Financial Services Industry Deloitte s initial analysis in response

More information

The widespread reach of FATCA How will it affect your business?

The widespread reach of FATCA How will it affect your business? www.pwc.com/us/fatca The widespread reach of FATCA How will it affect your business? August 2013 Contents The short answer 1 Now is the right time to learn more and take action 2 What are some specific

More information

David Weisner. Carolina Caballero. Today s Speakers. U.S. Tax Counsel for Asia Pacific. Citi

David Weisner. Carolina Caballero. Today s Speakers. U.S. Tax Counsel for Asia Pacific. Citi 1 2 Understanding FATCA David Weisner, U.S. Tax Counsel for Asia Pacific, Citi Carolina Caballero, Product Risk and Regulatory Strategy Manager, Clearing and FI Payments, Citi Treasury and Trade Solutions

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA) Introduction As a global financial services organisation, it is necessary for Standard Bank to comply with the laws and regulations of many different authorities,

More information

Facilitators Michael Miles Phil Ferrari

Facilitators Michael Miles Phil Ferrari Product Tax Seminar September 20 21, 2012 Washington, DC 1B: FATCA for Actuaries Chair Howard Stecker Facilitators Michael Miles Phil Ferrari What Actuaries Need to Know About The Impact of FATCA on Insurance

More information

Foreign Financial Institutions and IRS Compliance

Foreign Financial Institutions and IRS Compliance www.pwc.com Global IRW Newsbrief Information reporting and withholding (IRW) February 27, 2012 The new proposed FATCA regulations: Overview On October 27, 2009, members of the U.S. Senate Finance Committee

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA) FATCA REGISTRATION GUIDANCE NOTES Issued by Inland Revenue, New Zealand 30 July 2014 Version 1.4 [Note: These Guidance Notes replace version 1.3, dated 13 January

More information

Agreement Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA

Agreement Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA Agreement Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA Whereas, Switzerland and the United States of America ( United States, each, a Party

More information

Private Equity Alert

Private Equity Alert March 1, 2013 Private Equity Alert Final FATCA Regulations Released Impact on Private Investment Funds On January 17, 2013, the US Treasury and the IRS released final regulations under the Foreign Account

More information

Frequently Asked Questions (FAQ) FATCA

Frequently Asked Questions (FAQ) FATCA Frequently Asked Questions (FAQ) FATCA Table of Contents General... 3 What is FATCA?... 3 What is the purpose of FATCA?... 3 When does FATCA begin?... 3 Who is impacted by FATCA?... 3 What information

More information

Tax Group Client Alert

Tax Group Client Alert Tax Group Client Alert For Beijing Frankfurt Hong Kong London Los Angeles Munich New York São Paulo Singapore Tokyo Washington, DC FATCA 2.0 FOR FUNDS AND SECURITIZATION VEHICLES Introduction On February

More information

FATCA Documentation and Due Diligence

FATCA Documentation and Due Diligence FATCA Documentation and Due Diligence Seminar on U.S. Taxation of International Banks Sponsored by the Institute of International Bankers June 19, 2012 E.A. (Lisa) Chippindale Karan Mosley Humberto Reboredo

More information

Insurance Authority Workshop Foreign Account Tax Compliance Act. Abu Dhabi 28 January 2014

Insurance Authority Workshop Foreign Account Tax Compliance Act. Abu Dhabi 28 January 2014 Insurance Authority Workshop Foreign Account Tax Compliance Act Abu Dhabi 28 January 2014 Agenda q q q q q q FATCA and IGAs FATCA Timeline Focus for next 6 months US Treasury and IRS update Matters Arising

More information

FATCA Update Australian Superannuation Industry

FATCA Update Australian Superannuation Industry May 2014 FATCA Update Australian Superannuation Industry Intergovernmental agreement signed with US, and draft enabling legislation released In welcome news for the Australian superannuation industry and

More information

F.A.T.C.A. in a Nutshell: Questions and Answers to Tickle the Fancy of a Compliance Officer 1 By Fabien Gaglio and Stanley C.

F.A.T.C.A. in a Nutshell: Questions and Answers to Tickle the Fancy of a Compliance Officer 1 By Fabien Gaglio and Stanley C. F.A.T.C.A. in a Nutshell: Questions and Answers to Tickle the Fancy of a Compliance Officer 1 By Fabien Gaglio and Stanley C. Ruchelman The following F.A.Q. provides a general overview of the Foreign Account

More information

WEBER METALS, INC. Vendor Application Form (Foreign)

WEBER METALS, INC. Vendor Application Form (Foreign) WEBER METALS, INC. Vendor Application Form (Foreign) Company Name Address (if different from W-8) Street: City County Zip Code Country Phone # Fax # (Opt.) Contact Information Contact Email Tax ID Number

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) February 13, 2014 Spanish Chinese Russian Foreign Account Tax Compliance Act (FATCA) Introduction to FATCA and IGAs The Foreign Account Tax Compliance Act (FATCA) is a US law enacted in 2010 as part of

More information

Agreement 1 Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA

Agreement 1 Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA Agreement 1 Between Switzerland and the United States of America for Cooperation to Facilitate the Implementation of FATCA Whereas, Switzerland and the United States of America ( United States, each, a

More information

FATCA Regs Come Up Short For P&C Insurance Industry

FATCA Regs Come Up Short For P&C Insurance Industry Portfolio Media. Inc. 860 Broadway, 6th Floor New York, NY 10003 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com FATCA Regs Come Up Short For P&C Insurance Industry

More information

Simplified Instructions for Completing a Form W-8BEN-E

Simplified Instructions for Completing a Form W-8BEN-E Simplified Instructions for Completing a Form W-8BEN-E For Non-Financial Institutions Only Updated April 2015 Circular 230 Disclaimer: Any tax advice contained in this communication is not intended or

More information

IRAS e-tax Guide. Compliance Requirements of the Singapore-US Intergovernmental Agreement on Foreign Account Tax Compliance Act

IRAS e-tax Guide. Compliance Requirements of the Singapore-US Intergovernmental Agreement on Foreign Account Tax Compliance Act IRAS e-tax Guide Compliance Requirements of the Singapore-US Intergovernmental Agreement on Foreign Account Tax Compliance Act Published by Inland Revenue Authority of Singapore Published on 17 Mar 2015

More information

FATCA Frequently Asked Questions

FATCA Frequently Asked Questions FATCA Frequently Asked Questions FATCA overview 1. What is FATCA? 2. What is the impact of FATCA? 3. How do I know if I am affected? 4. When will the FATCA legislation become effective? 5. Is HSBC the

More information

FATCA Final Regulations: Definitions List

FATCA Final Regulations: Definitions List FATCA Final Regulations: Definitions List By Craig Cohen Chapter 4 of the Internal Revenue Code and the Treasury regulations thereunder commonly known as the Foreign Account Tax Compliance Act, or FATCA

More information

IIB Seminar on U.S. Taxation of International Banks FATCA FFI Agreements and Form W-8 Series Instructions

IIB Seminar on U.S. Taxation of International Banks FATCA FFI Agreements and Form W-8 Series Instructions IIB Seminar on U.S. Taxation of International Banks FATCA FFI Agreements and Form W-8 Series Instructions June 17-18, 2013 Laurie Hatten-Boyd, KPMG LLP Denise Hintzke, Deloitte Tax LLP Yaron Reich, Cleary

More information

TAXATION (INTERNATIONAL TAX COMPLIANCE) (CROWN DEPENDENCY [CD]) REGULATIONS 2014 GUIDANCE NOTES. RELEASE DATE: 1 April 2014

TAXATION (INTERNATIONAL TAX COMPLIANCE) (CROWN DEPENDENCY [CD]) REGULATIONS 2014 GUIDANCE NOTES. RELEASE DATE: 1 April 2014 TAXATION (INTERNATIONAL TAX COMPLIANCE) (CROWN DEPENDENCY [CD]) REGULATIONS 2014 GUIDANCE NOTES RELEASE DATE: 1 April 2014 Note : These draft Guidance Notes dated 1 April 2014 have been revised to reflect

More information

FATCA Pre-Existing Accounts v. Onboarding: Clarifying the Differences. June 27, 2012

FATCA Pre-Existing Accounts v. Onboarding: Clarifying the Differences. June 27, 2012 FATCA Pre-Existing Accounts v. Onboarding: Clarifying the Differences June 27, 2012 Agenda Introduction Presentation Questions and Answers (anonymous) Slides now available on front page of Securities Docket

More information

US FATCA, CRS and EUSD Insurance Considerations

US FATCA, CRS and EUSD Insurance Considerations US FATCA, CRS and EUSD Insurance Considerations Prepared for Swiss-American Chamber of Commerce Tax Chapter Conference June 2014 Carl Emanuel Schillig Objective and key features of US FATCA, OECD CRS and

More information

Guidance for companies, trusts and partnerships on completing a self-certification form

Guidance for companies, trusts and partnerships on completing a self-certification form Guidance for companies, trusts and partnerships on completing a self-certification form In order to combat tax evasion by both individuals and businesses, the UK and many other countries have entered into

More information

VEDDERPRICE Chicago New York Washington, DC London San Francisco Los Angeles. FATCA for Private Funds: Key Considerations

VEDDERPRICE Chicago New York Washington, DC London San Francisco Los Angeles. FATCA for Private Funds: Key Considerations VEDDERPRICE Chicago New York Washington, DC London San Francisco Los Angeles August 2014 FATCA for Private Funds: Key Considerations Although the Foreign Account Tax Compliance Act (FATCA) went live July

More information

A Comprehensive FATCA Solution

A Comprehensive FATCA Solution in collaboration with A Comprehensive FATCA Solution End-to-end automated legal, technology and software solution facilitates global compliance with U.S. Foreign Account Tax Compliance Act requirements

More information

Version 3.0 (29.07.2014) Table of Contents

Version 3.0 (29.07.2014) Table of Contents Guidelines for the implementation of the FATCA Agreement and the FATCA Regulations in Malta issued in terms of Article 96(2) of the Income Tax Act (Chapter 123 of the Laws of Malta) Version 3.0 (29.07.2014)

More information

FATCA for Multinational Companies

FATCA for Multinational Companies FATCA for Multinational Companies Alan J. Schwartz February 27, 2015 www.mwe.com Boston Brussels Chicago Düsseldorf Frankfurt Houston London Los Angeles Miami Milan Munich New York Orange County Paris

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) www.pwc.com Foreign Account Tax Compliance Act (FATCA) Treasury Regulations 1.1471-1.1474 Incorporating updates through 1 July 2014 Ver. 1.2 1 August 2014 No claim to original U.S. Government works This

More information

F O R E I G N A C C O U N T T A X C O M P L I A N C E A C T : C U R R E N T D E V E L O P M E N T S

F O R E I G N A C C O U N T T A X C O M P L I A N C E A C T : C U R R E N T D E V E L O P M E N T S S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L F O R E I G N A C C O U N T T A X C O M P L I A N C E A C T : C U R R E N T D E V E L O P M E N T S J.P. Morgan Corporate & Investment Bank Presented

More information

Implementation of The International Tax Compliance (United States of America) Regulations 2013. Guidance Notes

Implementation of The International Tax Compliance (United States of America) Regulations 2013. Guidance Notes Implementation of The International Tax Compliance (United States of America) Regulations 2013 Guidance Notes 14 August 2013 1 Guidance Contents 1. Background 1.1 The purpose of these Guidance notes 1.2

More information

What s News in Tax Analysis That Matters from Washington National Tax

What s News in Tax Analysis That Matters from Washington National Tax What s News in Tax Analysis That Matters from Washington National Tax FATCA and Foreign Leasing Companies The Foreign Account Tax Compliance Act ( FATCA ) imposes withholding and reporting requirements

More information

Tax Related Identity Theft on the Rise

Tax Related Identity Theft on the Rise TAX RELATED IDENTITY THEFT ON THE RISE...1 ISSUE 2014-1 WINTER 2014 SIMPLIFIED HOME OFFICE DEDUCTION.... 1 PENALTY FOR PAYING OR REIMBURSING EMPLOYEE INDIVIDUAL HEALTH PLAN PREMIUMS... 2 DEFENSE OF MARRIAGE

More information

US Foreign Account Tax Compliance Act Intergovernmental Agreement. Frequently Asked Questions

US Foreign Account Tax Compliance Act Intergovernmental Agreement. Frequently Asked Questions US Foreign Account Tax Compliance Act Intergovernmental Agreement Frequently Asked Questions This document aims to provide background information regarding the intergovernmental agreement ( IGA ) to be

More information

TECHNICAL EXPLANATION OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT OF 2009

TECHNICAL EXPLANATION OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT OF 2009 TECHNICAL EXPLANATION OF THE FOREIGN ACCOUNT TAX COMPLIANCE ACT OF 2009 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION October 27, 2009 JCX-42-09 CONTENTS INTRODUCTION... 1 Page I. INCREASED

More information

U.S. Tax Services Stewart H. Patton 610-0689 stewart@ustax.bz. FATCA Overview. March 2014

U.S. Tax Services Stewart H. Patton 610-0689 stewart@ustax.bz. FATCA Overview. March 2014 U.S. Tax Services Stewart H. Patton 610-0689 stewart@ustax.bz FATCA Overview March 2014 FATCA Terminology FATCA: The U.S. Foreign Account Tax Compliance Act, added by the HIRE Act of 2010. FATCA added

More information

International Data Safeguards & Infrastructure Workbook. United States Internal Revenue Service

International Data Safeguards & Infrastructure Workbook. United States Internal Revenue Service International Data Safeguards & Infrastructure Workbook United States Internal Revenue Service March 20, 2014 FOR FATCA IMPLEMENTATION Table of Contents 1.1 Purpose of Document... 4 1.2 Current State of

More information

PwC Insurance Tax Alert

PwC Insurance Tax Alert PwC Insurance Tax Alert February 22, 2012 How do the proposed FATCA regulations impact insurers? On February 8th, the highly anticipated proposed regulations were issued, providing guidance on the various

More information

WHITE PAPER. Impact of FATCA on Client Onboarding Achieve FATCA compliance with effective, result-oriented IT and operational changes.

WHITE PAPER. Impact of FATCA on Client Onboarding Achieve FATCA compliance with effective, result-oriented IT and operational changes. WHITE PAPER Impact of FATCA on Client Onboarding Achieve FATCA compliance with effective, result-oriented IT and operational changes Abstract In March 2010, the Foreign Account Tax Compliance Act (FATCA)

More information

www.pwc.com/us/fatca Ready, set, FATCA: How the new rules will affect insurers, and why early action is the best policy July 2011

www.pwc.com/us/fatca Ready, set, FATCA: How the new rules will affect insurers, and why early action is the best policy July 2011 www.pwc.com/us/fatca Ready, set, FATCA: July 2011 How the new rules will affect insurers, and why early action is the best policy Introduction In March of 2010, the Foreign Account Tax Compliance Act (FATCA)

More information

Foreign Account Tax Compliance Act (FATCA)

Foreign Account Tax Compliance Act (FATCA) Foreign Account Tax Compliance Act (FATCA) GUIDANCE NOTES: APPLICATION OF FATCA TO COLLECTIVE INVESTMENT VEHICLES Issued by Inland Revenue, New Zealand 30 July 2014 Version 1.0 Please direct all comments

More information

Foreign Account Tax Compliance Act ( FATCA ) How Does It Affect NFFEs and Individuals

Foreign Account Tax Compliance Act ( FATCA ) How Does It Affect NFFEs and Individuals Foreign Account Tax Compliance Act ( FATCA ) How Does It Affect NFFEs and Individuals May, 2012 2008 Venable LLP 1 agenda Overview FATCA and NFFEs FATCA and Individuals US Information Reporting for US

More information

US Taxpayers Participating in Non US Retirement Plans: When is There an FBAR or FATCA Reporting Obligation?

US Taxpayers Participating in Non US Retirement Plans: When is There an FBAR or FATCA Reporting Obligation? February 29, 2012 Authors: Anubhav Gogna and David W. Powell If you have questions, please contact your regular Groom attorney or any of the attorneys listed below: Anubhav Gogna agogna@groom.com (202)

More information

GUIDANCE NOTES ON THE IMPLEMENTATION OF FATCA IN IRELAND

GUIDANCE NOTES ON THE IMPLEMENTATION OF FATCA IN IRELAND GUIDANCE NOTES ON THE IMPLEMENTATION OF FATCA IN IRELAND While every effort is made to ensure that the information given in this guide is accurate, it is not a legal document. Responsibility cannot be

More information

FATCA Q & A REPORTING AND WITHHOLDING

FATCA Q & A REPORTING AND WITHHOLDING FATCA Q & A REPORTING AND WITHHOLDING Issue 1 Luxembourg, June 26th, 2015 Important This Q&A document was prepared by ALFI's implementation working groups for the U.S. Foreign Account Tax Compliance Act

More information

[Mutual Legal Assistance (Tax Matters) Act, 2003 (as amended)] British Virgin Islands RELEASE DATE: [ ] JULY 2014

[Mutual Legal Assistance (Tax Matters) Act, 2003 (as amended)] British Virgin Islands RELEASE DATE: [ ] JULY 2014 This document is a DRAFT of the proposed Guidance Notes for the US and UK FATCA Agreements with the Government of the British Virgin Islands and at this stage it is for discussion purposes ONLY! [Mutual

More information

FOREIGN ACCOUNT TAX COMPLIANCE ACT ( FATCA ): COMPLIANCE TO ELIMINATE WITHHOLDING TAX. November 19, 2013

FOREIGN ACCOUNT TAX COMPLIANCE ACT ( FATCA ): COMPLIANCE TO ELIMINATE WITHHOLDING TAX. November 19, 2013 FOREIGN ACCOUNT TAX COMPLIANCE ACT ( FATCA ): COMPLIANCE TO ELIMINATE WITHHOLDING TAX November 19, 2013 MICHAEL HIRSCHFELD DECHERT LLP (212) 698-3635 michael.hirschfeld@dechert.com 12116187v1 1 FATCA Overview

More information

Supplement No. 1 published with Extraordinary Gazette No. 80 dated 16 th October, 2015. THE TAX INFORMATION AUTHORITY LAW (2014 REVISION)

Supplement No. 1 published with Extraordinary Gazette No. 80 dated 16 th October, 2015. THE TAX INFORMATION AUTHORITY LAW (2014 REVISION) CAYMAN ISLANDS Supplement No. 1 published with Extraordinary Gazette No. 80 dated 16 th October, 2015. THE TAX INFORMATION AUTHORITY LAW (2014 REVISION) THE TAX INFORMATION AUTHORITY (INTERNATIONAL TAX

More information

Agreement between the United States of America and the Kingdom of the Netherlands to Improve International Tax Compliance and to Implement FATCA

Agreement between the United States of America and the Kingdom of the Netherlands to Improve International Tax Compliance and to Implement FATCA Agreement between the United States of America and the Kingdom of the Netherlands to Improve International Tax Compliance and to Implement FATCA Whereas, the United States of America and the Kingdom of

More information

TAXATION (INTERNATIONAL TAX COMPLIANCE) (JERSEY) REGULATIONS 2014 DRAFT GUIDANCE NOTES. RELEASE DATE: 9 Sept 2015

TAXATION (INTERNATIONAL TAX COMPLIANCE) (JERSEY) REGULATIONS 2014 DRAFT GUIDANCE NOTES. RELEASE DATE: 9 Sept 2015 TAXATION (INTERNATIONAL TAX COMPLIANCE) (JERSEY) REGULATIONS 2014 DRAFT GUIDANCE NOTES RELEASE DATE: 9 Sept 2015 Note : The Draft Guidance Notes have been further revised in response to requests from interested

More information

FATCA and KYC Similar yet different

FATCA and KYC Similar yet different www.pwc.com FATCA and KYC Similar yet different November 12, 2012 FATCA extends customer due diligence and reporting requirements well beyond what is typically performed for KYC purposes. Background While

More information

www.pwc.com U.S. Legislative Outlook Tom Patten 2 March 2011

www.pwc.com U.S. Legislative Outlook Tom Patten 2 March 2011 www.pwc.com U.S. Legislative Outlook Tom Patten 2 Agenda Understanding the U.S. legislative process. Recent legislative developments. Proposals. 2 Understanding the U.S. Legislative Process The Long Road

More information

FAQs on Cost-Basis Reporting for Brokers

FAQs on Cost-Basis Reporting for Brokers FAQs on Cost-Basis Reporting for Brokers The IRS published a list of Frequently Asked Questions on the new expanded tax reporting requirement for brokers which include reporting their customer s tax basis

More information