LexisNexis® Legal Newsroom
Final FATCA Regulations Issued 1/17/2013

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today issued TD 9610 Final Regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). The issuance of the final regulations marks a key step...

FATCA Imposes Burdens on NFFEs

by Lawrence A. Kogan* The Foreign Account Tax Compliance Act of 2010 (FATCA) and its regs impose certain information gathering, reporting and withholding requirements on nonfinancial foreign entities (NFEEs) operated by U.S. taxpayers overseas. In part, FATCA is intended to address difficulties that...

FATCA Imposes Burdens on NFFEs

by Lawrence A. Kogan* The Foreign Account Tax Compliance Act of 2010 (FATCA) and its regs impose certain information gathering, reporting and withholding requirements on nonfinancial foreign entities (NFEEs) operated by U.S. taxpayers overseas. In part, FATCA is intended to address difficulties that...

Unearthing the Value in FATCA

by Micah Willbrand - LexisNexis ®.* ... At the time of its passage in 2010, the Foreign Account Tax Compliance Act (FATCA) appeared to be another reporting requirement for financial institutions (FIs). However, FATCA has long-term benefits for FIs - specifically the ability to streamline and...

FATCA and Switzerland: Model II

Editor's Note: The following is an excerpt from Chapter 19 of the forthcoming LexisNexis® Guide to FATCA Compliance by William Byrnes and Robert Munro, scheduled for publication in May 2013. In General On June 21, 2012 the U.S. and the Swiss government released a joint statement regarding...

LexisNexis® Guide to FATCA Compliance

As the world becomes "smaller," the dynamics of global financial transactions are intensifying. This is why the Foreign Account Tax Compliance Act (FATCA) is one of the most important awareness issues in today's tax policy and compliance arena. As new developments emerge almost daily in...

IRS Brushes Aside the Constitution to Make Way for FATCA

In a Tax Notes International article [ gated ] today [ News Analysis: Who Is A Manager Under FATCA? , tax analysts ® Worldwide Tax Daily , March 4, 2013] , Lee Sheppard discusses remarks about FATCA by Jesse Eggert, Treasury associate international tax counsel, at a March 1 IFA meeting. The most...

FATCA Regs Expand Deemed-Compliant FFIs

The final Foreign Account Tax Compliance Act (FATCA) regulations, issued on January 28, 2013, expand the categories of foreign financial institutions (FFIs) that are deemed to be in compliance with FATCA. In general, under FATCA, U.S. withholding agents are required to withhold tax on certain payments...

FATCA's Application to Foreign Entities and Foreign Assets

Editor's Note: The following is an excerpt from Chapter 6 of the forthcoming LexisNexis® Guide to FATCA Compliance by William Byrnes and Robert Munro, scheduled for publication in May 2013. Types of Entities The Foreign Account Tax Compliance Act ("FATCA") provides for withholding...

Practical Considerations for Developing a FATCA Compliance Program

Editor's Note: The following is an excerpt from Chapter 2 of the LexisNexis® Guide to FATCA Compliance * by William Byrnes and Robert Munro. ... The over-arching requirements for FATCA [the Foreign Account Tax Compliance Act] are three-fold: obtain appropriate due diligence information...

FATCA Withholding Compliance

Editor's Note: The following is an excerpt from Chapter 11 of the LexisNexis® Guide to FATCA Compliance * by William Byrnes and Robert Munro. The title is now shipping to customers world-wide. SUMMARY Importance of the Income Source In cross-border transactions, the U.S. tax system,...

U.S. Treasury Announces Six Month Delay in Implementing FATCA

by Denis Kleinfeld * The U.S. Treasury announced on July 12, that due to overwhelming concern from countries around the world, the implementation of FATCA (the Foreign Account Compliance Tax Act) would be deferred from January 1, 2014 to June 30, 2014. IRS Notice 2013-43 provides that this additional...

FATCA FFI Compliance Extended; FATCA Portal, Other Key Dates Pushed Back

In a major U.S. Treasury announcement about FATCA on the morning of July 12, 2013, titled “Engaging with More than 80 Countries to Combat Offshore Tax Evasion and Improve Global Tax Compliance.” Treasury extended by six months the start of the Foreign Account Tax Compliance Act (FATCA) withholding...

IRS Releases Long-Awaited FATCA FFI Agreement

On October 29, 2013, the IRS released the long awaited FFI draft agreement and an accompanying notice incorporating updates to certain due diligence, withholding, and other reporting requirements released earlier this year ( click the FATCA topic on the left for previous coverage ). The FFI draft agreement...

Strengthening Procedures Against Tax Evasion

by Henry Christensen III * The events involving Union Bank of Switzerland ("UBS") have resulted in federal criminal prosecutions, a deferred prosecution agreement between the U.S. Department of Justice and UBS and a separate global settlement between the U.S. Department of Justice, the Swiss...

Political Pushback on FATCA

By Prof. William H. Byrnes IV and Dr. Robert J. Munro * ...The Joint Statement between the U.S., France, Germany, Italy, Spain and the United Kingdom regarding an intergovernmental approach to improving international tax compliance and implementing FATCA laid the foundation for the U.S. commitment...

FATCA - FI Account Remediation

by Prof. William H. Byrnes IV and Dr. Robert J. Munro * Editor's Note: The following excerpts are from Chapter 4 of the forthcoming 2014 edition of LexisNexis® Guide to FATCA Compliance by William Byrnes and Robert Munro, scheduled for publication in March 2014. Chapter 4 contributors: Jason...

FATCA in Canada: Constitutional Challenge Mounting

A group of Canadians has put together a campaign to explore the constitutional violations posed by FATCA in Canada. Some of these issues were raised by pre-eminent constitutional scholar Peter Hogg, in this letter to Finance . Others arise because of the adoption of the intergovernmental agreement (IGA...

FATCA Compliance Programs

By Prof. William H. Byrnes and Dr. Robert J. Munro * Editor's Note: The following is an excerpt from Chapter 2 of the 2014 edition of LexisNexis Guide to LexisNexis® Guide to FATCA Compliance by William Byrnes and Robert Munro, published February 2014. Chapter 2 contributors: Jeffrey Locke...

Analysis of New 2014 Form W-8IMY and W8-BEN-E

On April 30, 2014 the IRS released the new Form W-8IMY (“ Form W-8IMY ”), formally replacing its 2006 predecessor W-8IMY. This new Form W-8IMY has 28 parts, whereas the previous August 2013 FATCA draft W-8IMY only contained 26. The new 2014 Form W-8IMY is vastly different from the seven-part...

Treasury Notice 2014-33

Treasury released Notice 2014-33 on May 2. Notice 2014-33 provides aspects of temporary relief for five areas of FATCA compliance: 1. 6 month extension (from July 1, 2014 until December 31, 2014) for characterizing as “pre-existing” the obligations (including accounts) held by an entity;...

Virtual Currency Regulatory Developments

By Prof. William H. Byrnes IV and Dr. Robert J. Munro * Editor's Note : The following is an excerpt from the e-book only title Money Laundering, Asset Forfeiture, and Recovery and Compliance - A Global Guide , by William Byrnes and Robert Munro. Chapter contributors : Emmanuel Rayes is a May 2014...

FATCA FFI Registrations as of July 2014

* by Prof. William H. Byrnes IV and Haydon Perryman FATCA [the Foreign Account Tax Compliance Act] requires that foreign financial institutions [FFIs] make regular certifications to the IRS, as well as annually disclose taxpayer and account information for U.S. persons, unless an intergovernmental...

Completing FATCA Forms

Modifications have recently been made to the forms that foreign individuals and entities complete in conjunction with FATCA. The 2014 Form W-8BEN is for use solely by foreign individuals , while Form W-8BEN-E is for use by entities . Payment recipients with non-beneficial owner status are required to...

FATCA Expanded Affiliated Groups (EAGs) by Country -- FFIs

By Prof. William H. Byrnes IV and Haydon Perryman * Foreign financial institutions (FFIs), along with their branches and affiliates, are defined as an "expanded affiliated group." There are 3,778 Lead Entities of EAGs among the approximately 88,000 FFI registrations from 250 countries.....