LexisNexis® Legal Newsroom
Definition Added to FATCA Requirements Landscape

Proposed Regs Revise FATCA's Due Diligence Procedures: Pre-existing Individual Accounts and Electronic Searches The much-anticipated proposed regulations under the Foreign Account Tax Compliance Act (FATCA) have been issued by the Treasury, and among the lengthy provisions is significant guidance...

Reporting and Withholding Guidance: Payments to FFIs Under FATCA

Editor's Note : This narrative is derived from Tax Controversies: Audits, Investigations, Trials § 17.04 (Matthew Bender) by Robert S. Fink, J.D., LL.M., Kostelanetz & Fink, LLP, New York, N.Y. ... The Foreign Account Tax Compliance Act, or FATCA, enacted in March 2010 and codified at...

Reporting Specified Financial Assets and Form 8938

U.S. taxpayers with assets overseas and their advisers should be mindful of new Form 8938, Statement of Specified Foreign Financial Assets , as they prepare the taxpayers' federal income tax returns for 2011. Temporary Regulations issued in December 2011 state that, with certain exceptions, Form...

Reporting Obligations of U.S. Beneficiaries of Foreign Trusts and New Form 8938

In 2010, Congress enacted the Foreign Account Tax Compliance Act (FATCA) as part of the Hiring Incentives to Restore Employment Act ("the HIRE Act"), and the legislation amended the Internal Revenue Code with the goal of increasing foreign account tax reporting and compliance. [The Hiring Incentives...

FATCA (Foreign Account Tax Compliance Act) Proposed Regulations

The most recent proposed Foreign Account Tax Compliance Act (FATCA) regulations are designed to lighten the due diligence and compliance burden on foreign financial institutions and U.S. withholding agents, especially with respect to high value accounts. The Foreign Account Tax Compliance Act (FATCA...

Reporting Specified Financial Assets and Form 8938

U.S. taxpayers with assets overseas and their advisers should be mindful of new Form 8938, Statement of Specified Foreign Financial Assets , as they prepare the taxpayers' federal income tax returns for 2011. Temporary Regulations issued in December 2011 state that, with certain exceptions, Form...

Reporting Requirements for U.S. Owners and Grantors of Foreign Trusts

The Hiring Incentives to Restore Employment Act ("the HIRE Act"), signed into law by President Obama on March 18, 2010, amended and added provisions of the Internal Revenue Code with the aim of increasing foreign account tax compliance. The provisions of the Foreign Account Tax Compliance Act...

Reporting Obligations of U.S. Beneficiaries of Foreign Trusts and New Form 8938

In 2010, Congress enacted the Foreign Account Tax Compliance Act (FATCA) as part of the Hiring Incentives to Restore Employment Act ("the HIRE Act"), and the legislation amended the Internal Revenue Code with the goal of increasing foreign account tax reporting and compliance. [The Hiring Incentives...

U.S. FATCA Information Reporting: Fishing for Forsaken Tax Revenues

* by Lawrence A. Kogan, Esq. FATCA's Objective The Foreign Account Tax Compliance Act ("FATCA"), which added new Chapter 4 to Subtitle A of the Internal Revenue Code (comprising Sections 1471 , 1472 , 1473 , and 1474 ) was signed into law on March 18, 2010 by President Obama as part...

U.S. FATCA Information Reporting: Fishing for Forsaken Tax Revenues

* by Lawrence A. Kogan, Esq. FATCA's Objective The Foreign Account Tax Compliance Act ("FATCA"), which added new Chapter 4 to Subtitle A of the Internal Revenue Code (comprising Sections 1471 , 1472 , 1473 , and 1474 ) was signed into law on March 18, 2010 by President Obama as part...

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...

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...

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...

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...

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...

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...