Tax & Accounting Blog

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IRS IRPAC Recommends Additional Postponement of FATCA Implementation

In a report delivered at the annual Public Meeting of the IRS Information Reporting Program Advisory Committee (IRPAC), the IRPAC recommended that the IRS postpone the requirement to impose FATCA withholding until January 1, 2015. IRPAC also recommended an extension of the validity period of Forms W-8 that otherwise would expire on December 31, 2013, … Read More

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IRS Releases Draft of Instructions for Form 1042 for 2014

On November 6, the IRS has released a draft of the new Instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, for 2014. As the draft of the form itself, issued earlier this year without any instructions, showed, the IRS is making substantial changes in Form 1042 and expanding … Read More

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FATCA Compliance Updated by IRS Notice 2013-69

IRS Notice 2013-69 provides new guidance for foreign financial institutions (FFIs) that sign an FFI agreement with the IRS for compliance under FATCA (the Foreign Account Tax Compliance Act). Notice 2013-69 also includes guidance for FFIs that are treated as reporting financial institutions under an applicable Model 2 intergovernmental agreement (IGA) between the United States … Read More

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Why Nature of Income Paid to Foreign Vendors Matters Part 7 – Tax Treaty Exemptions from Withholding

A common withholding exemption is a claim under an applicable provision of an income tax treaty with the country of tax residence of the income’s beneficial owner. Such a claim must be made by the vendor on a valid Form W- 8BEN, or a Form 8233 in the case of treaty claims by individuals on … Read More

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Alert: IRS Announces Postponement from January 1 to July 1 for Many Items of FATCA Compliance

Notice 2013-43, an advance copy of which was released today, revises the timeline set by the FATCA final regulations for certain elements of due diligence, tax withholding, and reporting under Chapter 4 of the Internal Revenue Code, the Foreign Account Tax Compliance Act known as FATCA. Notice 2013-43 will be officially published on July … Read More

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Japan signs FATCA Implementation Agreement

The U.S. Department of Treasury has announced a statement of mutual cooperation and understanding for implementation of the U.S. Foreign Account Tax Compliance Act (FATCA). The statements will serve as a FATCA intergovernmental agreement (IGA) following the Treasury Department’s Model 2 structure for direct reporting by Japanese financial institutions to the U.S. Internal Revenue Service. … Read More