Easing the pain of FATCA

Urged  by the financial services industry  that the rules under FATCA would be “totally unworkable” the IRS issued several Notices (2010-60, 2011-34 and 2011-53) to ease the implementation of FATCA. Now come the proposed Regulations containing some relief, especially in the start date of the obligations under the Act.

The proposed regulations exclude from the definition of withholdable payment any payment made under an obligation outstanding on 1 January 2013. Therefore payments on obligations entered into before 1 January 2013 will not be subjected to FATCA (under the Act the cut off date was 18 March 2012).

Withholding on certain “foreign sourced pass thru payments” is deferred until at least 2017.

There are significant changes to what constitutes “financial accounts” for the purposes of FATCA. The definition is refined to exclude most debt and equity securities issued by banks and brokerage firms, subject to an

anti-abuse rule.

There are several other changes made by the proposed Regulations

Does the world and especially the U.S need increased scrutiny of investments whether they be in the U.S or abroad?

Easing the pain of FATCA
0 votes, 0.00 avg. rating (0% score)

About Anton

Anton Joseph is a Writer at CCH.
This entry was posted in US and tagged , , . Bookmark the permalink.

2 Responses to Easing the pain of FATCA

  1. Pingback: mesh ergonomic office chairs

  2. Very interesting point of whether the US does or does not need increased scrutiny of their investments…

    Like or Dislike: Thumb up 0 Thumb down 0

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>