Issued by the IRS on August 19, Notice 2011-71 provides interim guidance under section 6050W of the Internal Revenue Code. In summary, the guidance provides relief from some 6050W reporting and documentation requirements for payment settlement entities who are U.S. payors making payments to offshore accounts.
The Notice is the result of comments received regarding the final 6050W regulations citing the administrative burdens that would result from the regulations. The IRS intends to amend section 6050W to reflect the guidance contained in the Notice.
Click to see the entire Notice. Notice 2011-71 will be in IRB 2011-37, dated September 12, 2011.