Let the box ticking begin: IRS releases draft Fatca reporting documents
Drafts of documents that will need to be filled in and returned to the US Internal Revenue Service as part of Fatca (Foreign Account Tax Compliance Act) regulations have been published by the IRS and US Treasury.
The documents include:
– [asset_library_tag 6675,Draft Form W-8BEN]
– [asset_library_tag 6676,Draft Form W-8BEN-E]
– [asset_library_tag 6677,Draft Form W-9]
Together they cover demands for reporting withholding taxes to the US government, requests for identification purposes, and identifying foreign financial institutions (FFIs) as they are required to respond to the regulations.
Currently in draft form, the IRS has placed a cover note on each of the documents stating that “This is an early release draft of an IRS tax form, instructions, or publication, which the IRS is providing for your information as a courtesy. Do not file draft forms.”
It adds: “forms generally are subject to OMB approval before they are officially released. Drafts of instructions and publications are usually subject to at least some changes before being officially released.”
According to details listed on the IRS website, FFI’s have until 30 June to ensure they start performing the necessary registrations according to the Act. However, no specific timetable is offered as to when the current draft documents may come into full effect.
Fatca affects European FFIs such as banks because the rules demand that they in effect identify and start reporting on any ‘US persons’ that may have more than $50,000 in assets in accounts outside US jurisdiction.