News › Weekly Alert Article
FATCA Update: Proposed Regulations
In February, the US Treasury Department and the Internal Revenue Service issued long-awaited proposed regulations that have in fact provided foreign financial institutions, non-financial foreign entities and others with additional, although not final, guidance on FATCA compliance. According to remarks by Commissioner of Internal Revenue, the proposed regulations were designed "with the goal of achieving the policy goals of the legislation by focusing on the accounts with the highest risk of non-compliance, and trying to minimise burden. Taxand US assesses what multinationals can do to plan for what comes next.
While the proposed regulations were meant to take some of the guesswork out of FATCA compliance, as well as clarify certain steps and simplify the processes under the withholding regime, there are still many unanswered questions about implementation. One thing that is clear is that FATCA implementation is a priority of the IRS and Treasury. Now that we're a year closer to the first of many effective dates phasing in the withholding regime, your organisation cannot afford to wait until the last minute to determine how to comply.
Taxand US discusses the proposed regulations in more detail
IRS and Treasury have been pushing for clarity and to ease the compliance burden under FATCA. While some progress has been made, there are still many unanswered questions. Although the FATCA rules have not been finalised and are subject to change as the program evolves, as the proposed regulations are considered and as the terms of the joint statement are pursued and implemented, the suggestion of a year ago still stands true today. You should be assessing and planning for what comes next. The only thing that has changed is that we are another year closer to FATCA going live.
Your Taxand contacts for further queries are:
T. +1 212 328 8693