IRS publishes 544 pages of final Fatca reporting regulations for FFIs
The US Internal Revenue Service has published its final reporting regulations for foreign financial institutions (FFIs) that runs to 544 pages.
The hefty set of regulations cover the part of the Foreign Account Tax Compliance Act (Fatca), relating to reporting that must be done to the IRS by FFIs who may have US clients.
As it implements Fatca, the IRS, as the responsible federal authority for collecting tax from US citizens wherever they may be living in the world, has been seeking first to build up a picture of which institutions have said clients on their books.
The next stage is to ensure FFIs implement the required withholding taxes on gains from assets held in the accounts, and ensure transfer of those tax revenues to the US government.
The US Treasury, which has overall responsibility for implementing the Fatca legislation, said the publication of the final reporting regulations would clarify the development of Fatca in a number of areas.
– Build on intergovernmental agreements that foster international cooperation.
– Phase in the timelines for due diligence, reporting and withholding and align them with the intergovernmental agreements.
– Expand and clarify the scope of payments not subject to withholding.
– Refine and clarify the treatment of investment entities. .
– Clarify the compliance and verification obligations of FFIs.
FFIs have been waiting for the final reporting regulations in order to better understand exactly what it is they must do in order to comply with Fatca.
The regulations are available here: TD 9610 Final Regulations (Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities)
The IRS said the filing date of its TD 9610 is 17 January, with a publication date of 28 January.