New FATCA Forms & IGA signed with Finland
Final Form 1042, instructions for Form W-8ECI, 2014
On 5 March 2014, the IRS has posted final versions of the following form and instructions for 2014 that have been updated to reflect FATCA provisions:
Draft IRS forms (2014) for financial institutions, withholding agents to report account information
The IRS has also posted drafts of two forms for 2014 relating to the U.S. Foreign Account Tax Compliance Act (FATCA).
The forms are to be used by financial institutions and withholding agents for reporting account holder information under the FATCA reporting requirements.
The draft forms (dated as of March 4, 2014) are:
Instructions for Form 8966 (for 2014) have not yet been posted as a draft version.
The instructions for Form 1042-S for 2014 were released by the IRS in a draft version (PDF, 482 KB) in November 2013, but have yet to be posted by the IRS as final instructions.
Draft instructions for Form 8966 (for 2014) have not yet been released by the IRS.
Under the FATCA rules, participating foreign financial institutions (PFFIs) making a withholdable payment are required, under the final regulations, to file an income tax return on Form 1042, information returns on Forms 1042-S, and, if applicable, Form 8966.
Finland signs intergovernmental agreement with United States
Representatives of the governments of Finland and the United States have signed an intergovernmental agreement (IGA) for implementing provisions of the U.S. FATCA legislation.
The IGA between Finland and the United States is based on the Model 1 IGA.
Read text of the FATCA IGA (PDF, 345 KB) between Finland and the United States.
For further information, please do not hesitate to contact us.
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.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.