FATCA: IRS Relaxes Impending Deadlines for FATCA Compliance, but does not Eliminate the Need to Comply

May 07, 2014

Compliance with the Foreign Account Tax Compliance Act (“FATCA”) has been causing a great deal of anxiety as the July 1, 2014, start date for FATCA withholding grows nearer. Compliance has been partially hampered by the lack of published instructions for new complex forms such as Form W-8BEN-E that U.S. withholding agents and foreign financial institutions (“FFIs”) will need to receive to document the status of payees and account holders and determine if they must withhold or report under FATCA. On May 2, 2014, the Internal Revenue Service (the “IRS”) announced a general relaxation of some of the FATCA deadlines that should allow U.S. withholding agents and FFIs to breathe a sigh of relief, but it will not halt the need to continue efforts to comply with FATCA as some may have hoped.

Read "FATCA: IRS Relaxes Impending Deadlines for FATCA Compliance, but does not Eliminate the Need to Comply."