In a welcome announcement, certain transitional rules to implement aspects of the Foreign Account Tax Compliance Act (FATCA) have been extended. Issued on September 18, 2015, this notice announces that the Department of Treasury and the Internal Revenue Service intend to amend the regulations to extend the period of time the transitional rules will apply. Until this amendment officially occurs, taxpayers may rely on the current provisions.
So what, exactly, was extended? Here are a few of the key, widely applicable, extensions:
- Gross proceeds withholding to payments occurring after December 31, 2018.
- Time for sponsored entities to get their own registration completed to December 31, 2016.
- Deadlines for compliance in countries still developing procedures to implement intergovernmental agreements to September 30, 2016.
Our international tax team can assist in compliance with FATCA requirements. Please reach out to us if you have general questions about FATCA or if you believe specific items in this this notice may be applicable to you.