FATCA - KPMG’s initial analysis of final regulations 

January 21:   The U.S. Treasury Department and IRS on January 17, 2013, released 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, 2014 effective date (i.e., December 31, 2013, for participating foreign financial institutions).


KPMG’s initial analysis of the FATCA final regulations reviews certain key provisions and provides observations concerning:


  • Harmonization with intergovernmental agreements
  • Relaxation of certain documentation and due diligence requirements
  • An expanded scope of “grandfathered obligations”
  • Liberalization of requirements for certain retirement funds and savings accounts
  • Limited FFIs – continued transition rule
  • Bearer shares
  • Brokers (delivery vs. payments)
  • Registration process

Read the January 2013 report [PDF 137 KB] prepared by KPMG LLP: FATCA - KPMG’s initial analysis of final regulations




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