Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/8/2012

United States - FATCA proposed regulations are issued 

February 8:   The Treasury Department and IRS today released for publication in the Federal Register proposed regulations (REG-121647-10) as guidance concerning information reporting by foreign financial institutions for U.S. accounts, and withholding on certain payments made to foreign financial institutions and other foreign entities under the Foreign Account Tax Compliance Act (FATCA).

For text of the 389-page proposed regulations: REG-121647-10 (PDF 827 KB)


FATCA—part of the Hiring Incentives to Restore Employment Act of 2010 (Pub. L. No. 111-147 (H.R. 2847))—added a new Chapter 4 to the income tax subtitle of the Code. The FATCA rules are very complex and evolving, and there have been many unanswered questions about how and when the FATCA rules will apply.


Since FATCA's enactment in March 2010, the IRS has issued several rounds of guidance, but today's regulations have been much anticipated by taxpayers affected by the FATCA withholding tax regime and the approaching January 1, 2013 effective date.

 

REG-121647-10 is scheduled to be published in the Federal Register on Wednesday, February 15, 2012.




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