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The US tax authority, the Internal Revenue Service (IRS), has announced a relaxation of enforcement and administration of the due diligence, reporting, and withholding provisions under FATCA for 2014 and 2015 for entities that have made “good faith efforts to comply” with the regulations. (See IRS notice 2014-33 Further Guidance on the Implementation of FATCA and Related Withholding Provisions.)
The US tax authority, the Internal Revenue Service (IRS), has announced a relaxation of enforcement and administration of the due diligence, reporting, and withholding provisions under FATCA for 2014 and 2015 for entities that have made “good faith efforts to comply” with the regulations. (See IRS notice 2014-33 Further Guidance on the Implementation of FATCA and Related Withholding Provisions.)
The years will be regarded as a transition period for participating or deemed-compliant foreign financial institutions (FFI) and withholding agents – both of which will be able to treat certain entity obligations issued, opened, or executed between 1 July 2014 and 1 January 2015 as pre-existing.
The change will allow extra time – until 31 December 2014 if the payee is an FFI, or 30 June 2016 in all other cases – for the purposes of due diligence and withholding requirements.
