Tax & Accounting Blog

Revised IRS Guidance: FATCA

Revised IRS Guidance: FATCA

FATCA Tax Withholding Phase-In Applies to Payments to Foreign Entities, in addition to Foreign Financial Institutions IRS Notice 2011-53, originally issued on July 14, was revised and reissued on July 25 to clarify that FATCA withholding will be phased in for payments to foreign entities, following the same extended schedule announced in the original Notice … Read More

New FATCA Notice Released – Notice 2011-53

New FATCA Notice Released – Notice 2011-53

On July 17, 2011,  the IRS released a new notice, 2011-53, which provides a ‘workable timeline for FFIs and U.S. Withholding Agents to implement the various requirements of FATCA’. Specifically: • An FFI must enter an agreement with the IRS by June 30, 2013, to ensure that it will be identified as a participating FFI … Read More

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Understanding the Difference between Documented and Undocumented

It is important to keep in mind that, as a general rule, all US source payments made to non-US residents are subject to 30% withholding. To apply a reduced (or zero) rate of withholding, the non-US person must provide valid documentation. If your securities account is with a Withholding Agent (a Qualified Intermediary, Non-Qualified Intermediary … Read More

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Common W-8BEN Validation Issues

W-8BEN forms are notorious for being difficult to complete. Here are some of the most common errors found on the Form W-8BEN that, if present, may deem that client to be undocumented. Cross reference your documentation against these common errors to ensure documentation compliance. Name Mis-Match The name on line 1 of the W-8BEN needs … Read More

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What Is the Difference between a Qualified Intermediary and Non-Qualified Intermediary?

Although the Qualified Intermediary (QI) regime has been around for quite some time, simple questions surrounding the terminology and structure still remain quite common. For example, what is an Intermediary, a Qualified Intermediary, and a Non-Qualified Intermediary? An Intermediary is any person or organisation holding securities other than for its own account. A Qualified Intermediary is a … Read More

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IRS Resources for Identifying Tax-Exempt Organizations

A tax-exempt organization is an exempt recipient for purposes of tax information reporting, being generally exempt from being reported on a Form 1099.  The organization generally claims this exempt status on the Form W-9 it furnishes to you.  But, if you do not have a W-9, an alternate rule permits a payor to treat an … Read More