Legal Alert: The season of giving – proposed regulations ease FATCA reporting burdens
Posted on Dec 21, 2018 in Legal Alerts
On December 13, 2018, proposed regulations (Proposed Regulations) were issued that reduce certain compliance obligations under Sections 1471-1474 (the Foreign Account Tax Compliance Act (FATCA)) of the Internal Revenue Code of 1986, as amended (Code) and Sections 1441-1446 of the Code. FATCA generally requires withholding 30% on certain US source payments made to foreign financial institutions (FFIs) unless the FFI has entered into an FFI agreement with the Internal Revenue Service (IRS) or the FFI is resident in a country that has an Intergovernmental Agreement (IGA) in force. Sections 1441-1446 of the Code impose 30% withholding on a US source payment made to a foreign person unless a statutory or treaty exception applies.