Law Office of Charles W. Cope, PLLC | IRS Eases Some FATCA Deadlines
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  • IRS Eases Some FATCA Deadlines
    July 2013
    Acknowledging that “certain elements of the phased timeline for the implementation of FATCA present practical problems for both U.S. withholding agents and FFIs [Foreign Financial Institutions]” the IRS issued Notice 2013-43 on July 12, 2013 extending the deadlines under the FATCA final regulations for U.S. withholding agents and participating foreign financial institutions to begin their due diligence, withholding, and reporting requirements. The final FATCA regulations will be amended to reflect the content of the notice.
    The notice announces a six-month extension (to June 30, 2014) of the date that withholding will begin.  A six-month extension also is provided for implementing new account-opening procedures, as well as certain related requirements to comply with FATCA.
    The deadline for foreign financial institutions to register as participating foreign financial institutions (PFFIs) also is extended.  Online registration, which was announced to begin on July 15, now is expected to begin on August 19, 2013.
    Finally, the notice announces that Treasury and the IRS intend to issue a list of jurisdictions that will be treated as having an IGA (Intergovernmental Agreement)[1] in effect, even though the IGA may not have entered into force on July 1, 2013.
    [1] See our January 2013 column for a discussion of FATCA IGAs.