Treasury and IRS issued guidance on FATCA
Foreign Account Tax Compliance Act
Below are selected publications from the Internal Revenue Service (IRS) and Treasury department providing guidance regarding Foreign Account Tax Compliance Act (FATCA). Guidance issues are posted as soon as they are made public.
- May 3, 2016: The IRS added a new FAQ to the FATCA General FAQs webpage addressing the registration and GIIN requirements for bulk acquisition and merger events. In addition to pointing to the general guidance provided in the Registration User Guide, the FAQ provides specific guidance in several scenarios, which represent common bulk acquisition and merger events.
- April 27, 2016: Panama and the United States signed a Model 1 Intergovernmental Agreement (IGA) for the implementation of FATCA. With the signature of this agreement the tax authorities of both countries will exchange the information covered by FATCA on a reciprocal basis.
- April 25, 2016: The UK HMRC issued a finalized International Exchange of Information Manual, including several updates and additions since the draft guidance released on September 14, 2015. The manual includes guidance for UK Financial Institutions with regard to FATCA, the Crown Dependencies and Overseas Territories (CDOT), the OECD Common Reporting Standard (CRS), and the EU Directive on Administration Cooperation (DAC).
- April 25, 2016: Three months after releasing the draft version, the IRS released a new Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)” and new Instructions for Form W-8BEN-E. As provided in the Treasury Regulations, a withholding agent may continue to accept the prior version of the Form W-8BEN-E for six months after the revision date shown on the form and may rely on it until the period of validity expires.
- April 8 2016: The Cayman Islands Department of International Tax Compliance (DITC) indicates leniency for FATCA and UK CDOT notification and reporting due dates
- April 4, 2016: The Cayman Islands Tax Information Authority (TIA) releases an updated Automatic Exchange of Information (AEOI) Portal User Guide for filers to complete notification and reopens AEOI Portal.
- March 25, 2016: In accordance with Treas. Reg. 1.1471-4T(a)(3) and the 2015 Instructions for Form 8966, all FFIs that are Participating FFIs must, among other things, report annually using Form 8966. This reporting obligation is imposed on all Participating FFIs within both Model 2 Intergovernmental Agreement (IGA) jurisdictions and jurisdictions in which no IGA has been signed (non-IGA jurisdictions). The deadline for Form 8966 FATCA reporting is March 31, 2016.
- March 25, 2016: Reporting deadlines and other key compliance milestones in the Cayman Islands are approaching. Given the specific notification to the Cayman Tax Authority requirement and the complexity of the key milestones for the three sets of information reporting rules that are applicable in this jurisdiction (i.e. FATCA, UK-CDOT, and CRS), a summary of the key dates should be considered by all the financial institutions that have presence in the Cayman Islands.
- March 10, 2016: The Luxembourg Tax Authorities recently issued a number of notices to Financial Institutions related to their obligations for 2014 FATCA reporting. Many of the letters issued have a 16th March deadline by which to respond. Given that there is a lead time in registering with the Luxembourg filing gateway, we would recommend that financial institutions address this as soon as possible.
- February 11, 2016: Inland Revenue Authority of Singapore (IRAS) published a reminder for Reporting Financial Institutions (RFI) that applied the Alternative Procedures for new accounts opened prior to the IGA’s entry into force and modifies FATCA reporting registration process.
- January 19, 2016: The Swiss State Secretary on International Finances (SFI) released a communication extending the deadline for reporting on non-consenting US accounts in Switzerland for the year 2015.
- January 19, 2016: The IRS released Notice 2016-08 providing relief with respect to some upcoming deadlines as well as guidance on the ability to accept electronically collected documentation from intermediaries.
- January 15, 2016: The IRS released a draft Form W-8BEN-E, “Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities),” and accompanying Instructions. Although the updates are by no means an overhaul, there are several material updates to highlight compared to the June 2014 version of the form.
- January 15, 2016: The Treasury Department updated the online FATCA document library, relocating the Intergovernmental Agreements (“IGAs”) from the Additional FATCA Documents page, referred to as the FATCA Archive, to the main FATCA Resource Center page. The IGAs are now reorganized into an alphabetized table with hyperlinks to the agreements.
- December 24, 2015: The IRS released 2015 versions of Form 8966 and Instructions for Form 8966. The new version of the form contains several new lines and checkboxes, as highlighted by the 2015 Instructions.
- November 16, 2015: The IRS made several updates and improvements to the FATCA Online Registration System, the web-based system on which financial institutions and other entities can register for FATCA purposes.
- October 13, 2015: The OECD launched the AEOI Portal, a webpage intended to provide a comprehensive overview of the OECD’s progress in implementing the Common Reporting Standard (CRS). The portal content includes a historical timeline and background on information exchange, guidance and materials, details on the international framework for CRS exchange relationships, information on and assistance with implementation, and an explanation on the commitment and monitoring process.
- October 2, 2015: The IRS released announcement IR-2015-111 affirming that it successfully met the September 30 deadline for reciprocal exchange of financial account information with certain foreign tax administrations. This exchange occurred between the US and foreign tax administrations that signed reciprocal Model 1 Intergovernmental Agreements (IGAs) and met the IRS’s standards for protection of taxpayer privacy. IRS Commissioner John Koskinen stated, “Meeting the Sept. 30 deadline is a major milestone in IRS efforts to combat offshore tax evasion through FATCA and the intergovernmental agreements.”
- September 29, 2015: The Department for International Tax Cooperation (DITC) sends update on Cayman Automatic Exchange of Information (AEOI) Portal issues.
- September 29, 2015: The IRS issued Rev. Proc. 2015-50, which supplements the list of the countries contained in Rev. Proc. 2014-64, under which the Treasury and IRS have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under Treas. Reg. §§ 1.6049-4(b)(5) and 1.6049-8 of the Regulations.
- September 29, 2015: The IRS released the Draft Form 8809-I and the Draft Instructions for Form 8809-I to facilitate the application for extension of time to file Form 8966 FATCA Report.
- September 24, 2015: IRS announces US Competent Authority Arrangements with Australia and the United Kingdom.
- September 18, 2015: The IRS, in conjunction with the United States Department of the Treasury, published Notice 2015-66 announcing its intent to amend the chapter 4 regulations to extend the timeline for application of certain FATCA transitional rules and to provide guidance to jurisdictions for the exchange of information for tax year 2014.
- September 18, 2015: IRS publishes Notice 2015-66 announcing extension of certain transitional rules under chapter 4.
- September 14, 2015: Her Majesty’s Revenue and Customs (HMRC) releases draft Automatic Exchange of Financial Account Information Guidance Notes (draft Guidance).
- August 27, 2015: IRS announced upcoming FATCA Online Registration System updates and releases new International Compliance Management Model (ICMM).
- August 19, 2015: IRS posts new and updated FAQs to IDES Technical FAQs and FATCA General FAQs.
- August 13, 2015: IRS releases updated FATCA International Data Exchange Service (IDES) and FATCA Metadata XML Schema v1.1 User Guides.
- August 12, 2015: IRS posts information on sponsored entity Global Intermediary Identification Number (GIIN) registrations and adds new FAQ to FATCA General FAQs addressing electronic receipt of Forms W-8.
- August 10, 2015: IRS updates FATCA IDES web pages, including IDES Technical FAQs and XML Schema Best Practices.
- August 7, 2015: The Organization for Economic Cooperation and Development (OECD) publishes three new reports to assist with global CRS implementation.
- August 3, 2015: The IRS announced that it added two new FAQs to the FATCA General FAQs webpage under the “Registration Update” section. These FAQs both address the Office of Foreign Assets Control’s Specially Designated Nationals (SDN) list.
- August 3, 2015: The Organization for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) publishes 12 new peer review reports and releases compliance ratings.
- July 28, 2015: IRS posts new FATCA IDES Technical FAQs and warns of FATCA XML Schema Best Practices error.
- July 14, 2015: The IRS announced that it posted several new and numerous updated International Data Exchange Service (IDES) FAQs to the FATCA IDES Technical FAQs website.
- July 10, 2015: Inland Revenue Authority of Singapore (IRAS) announces commencement of FATCA filing for the 2014 Reporting Year.
- June 29, 2015: Recent Legislation Increases Information Reporting Penalties. The Trade Preferences Extension Act of 2015, Public Law No: 114-27 (Legislation), which was signed into law on June 29, 2015, amends penalties applicable under IRC section 6721, Failure to file correct information returns, and IRC section 6722, Failure to furnish correct payee statements. The amendments apply to returns and statements required to be filed after December 31, 2015. These increases may impact taxpayers across all industries, not just within financial services.
- June 25, 2015: Reminder: Form 8966 deadline for Foreign Financial Institutions (FFIs) in jurisdictions without signed or agreed-in-substance Intergovernmental Agreements (IGAs).
- June 9, 2015: IRS posts new FAQs regarding Form 8966 extension of time to file and electronic filing waiver.
- June 9, 2015: IRS notifies reporters of error in FATCA XML Schema Best Practices webpage and updates IDES FAQs.
- June 1, 2015: Update on release of Bahamas guidance notes and FATCA reporting deadline and deadline extension for British Virgin Islands (BVI) Alternative Reporting Regime (ARR) election for Resident Non-Domiciled (RND) Individuals.
- May 20, 1015: The IRS announced the next IDES testing session, opening June 1, 2015, at 12:00 p.m. EDT and closing June 8, 2015, at 12:00 p.m. EDT. When participating in the session, the IRS noted that only test data should be submitted, and files containing production data or personally identifiable information will not be processed.
- May 20, 2015: Cayman Islands Department for International Tax Cooperation further extends Automatic Exchange of Information (AEOI) portal notification and reporting enforcement deadlines.
- May 11, 2015: Cayman Islands Department for International Tax Cooperation provides third update on Automatic Exchange of Information (AEOI) portal notification and reporting.
- May 8, 2015: International Data Exchange Services (IDES) enrollment process for US Withholding Agents (USWAs), Territory Financial Institutions (TFIs), commercial software vendors, and third party preparers is now available.
- April 30, 2015: Cayman Islands Department for International Tax Cooperation provides second update on Automatic Exchange of Information (AEOI) portal notification.
- April 28, 2015: 04-28-15 Notice 2015-10: IRS intends to amend regulations for refund and credit claims for Chapters 3 and 4 overwithholding.
- April 27, 2015: Cayman Islands Department for International Tax Cooperation provides update on Automatic Exchange of Information (AEOI) portal notification.
- April 15, 2015: The British Virgin Islands’ International Tax Authority announces the opening of its Financial Account Reporting System to facilitate FATCA reporting.
- March 24, 2015: The British Virgin Islands releases updated FATCA Guidance Notes.
- March 24, 2015: IRS clarifies nil reporting requirements and reporting deadline for Form 8966 in two new FATCA FAQs.
- March 20, 2015: Cayman Islands’ Tax Information Authority (TIA) announces the opening of the Automatic Exchange of Information (AEOI) portal to facilitate FATCA reporting.
- March 5, 2015: IRS posts updated IDES User Guide and new IDES Sample Enveloping Signature File.
- March 3, 2015: IRS issues ICMM Notifications User Guide and ICMM Notification XML Schema v1.4 User Guide.
- March 2, 2015: IRS announces new FATCA IDES test session opening on March 10, at 2:00 a.m. EDT and closing on March 12, at 5:00 p.m. EDT.
- February 20, 2015: IRS posts a new FAQ to the FATCA webpage clarifying the entities required to submit a Nil report and the procedures for submitting the report.
- February 2, 2015: IRS posts new FAQ to the FATCA webpage clarifying due diligence procedures
- January 20, 2015: IRS posted the following Form and Instructions: Instructions 8938; Form 1099-R; Instructions for 1099-R and 5948; and General Instructions for Certain Information Returns.
- January 14, 2015: IRS issues International Data Exchange Services web application alerts.
- January 12, 2015: IRS Announces the opening of IDES enrollment, updates IDES FAQs and User Guide, and issues Metadata XML Schema v1.0 User Guide.
- January 5, 2015: IRS issues updated Forms 1042-S and 8938; revises Publication 515–Withholding of Tax on Nonresident Aliens and Foreign Entities.
- December 22, 2014: IRS posts FAQ on IGA registration post-Announcement 2014-38.
- December 20, 2014: IRS releases new Form W-9.
- December 17, 2014: IRS issues supplement to Instructions for Form 8966, IDES user guide.
- December 12, 2014: IRS issues final regulations applicable to Form 8938, Reporting of Specified Foreign Financial Assets.
- December 1, 2014: IRS Announcement 2014-38 provides guidance on Agreed-in-Substance IGAs.
- November 12, 2014: IRS issues new FAQ, updates on Forms 1099, Instructions for the Requestor of Forms W-8, and the FFI list.
- October 29, 2014: The Organization for Economic Co-operation and Development (OECD) distributed a press release announcing the endorsement by all OECD and G20 countries as well as major financial centers participating in the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) of the standard on automatic exchange of information (AEOI).
- October 10, 2014: IRS Notice 2014-59 clarifies transitional relief for Entity Accounts opened before January 1, 2015.
- October 2, 2014: New IRS FAQs address validity of Non-US approved self-certifications.
- September 15, 2014: Validity of Non-US approved self-certifications in question.
- August 8, 2014: IRS releases Revenue Procedure 2014-47.
- July 21, 2014: First edition of the Standard for Automatic Exchange. of Financial Account Information in Tax Matters.
- July 18, 2014: IRS releases Instructions for the Requester of Forms W-8.
- June 30, 2014: IRS released technical corrections to FATCA and Chapters 3 & 61 Regulations.
- June 27, 2014: IRS released updated Qualified Intermediary agreement.
- June 26, 2014: Instructions for Form 1042-S - Foreign Person's US Source Income Subject to Withholding.
- June 26, 2014: The US and China reach FATCA Agreement in Substance.
- June 24, 2014: IRS releases final Instructions for Forms W-8BEN-E and 8966 & updated FFI Agreement.
- June 19, 2014: Details on final version of Form W-8IMY and Instructions.
- June 10, 2014: UK position on Notice 2014-33.
- June 2, 2014: FATCA Foreign Financial Institution Registration List and Download Tool.
- May 8, 2014: IRS published 2014 Form 1042 and Instructions.
- May 2, 2014: IRS Notice 2014-33 provides relief on implementation of FATCA and coordination rules.
- April 2, 2014: FATCA Announcement 2014-17.
- March 29, 2014: IRS released final Form W-8BEN-E for Entities.
- March 11, 2014: US and the British Virgin Islands Conclude FATCA Negotiations.
- March 10, 2014: IRS Publishes Final 2014 Form 1042-S.
- March 6, 2014: IRS publishes final Form 8966, "FATCA Report".
- March 4, 2014: Final Form W-8ECI for Income Effectively Connected with US Trade or Business.
- March 4, 2014: Release of updated final version of Form W-8BEN (with instructions) for Individuals.
- February 13, 2014: OECD releases model of competent authority agreement and common reporting standard model.
- January 13, 2014: IRS publishes corrected FFI Agreement in updated Revenue Procedure 2014-13.
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