IRS Issues Frequently Asked Questions, Answers on FATCA for Financial Institutions
By Alison Bennett
Sept. 17 –The Internal Revenue Service released two new sets of frequently asked questions and answers to help taxpayers meet the requirements of the Foreign Account Tax Compliance Act.
One set of FAQs deals with the online system that will be used by foreign financial institutions (FFIs) and other affected entities to register to do reporting under the law.
The second set is designed to help qualified intermediaries and other foreign entities required to withhold under the law, such as partnerships and trusts.
The 2010 statute requires FFIs to tell the IRS about their U.S.-owned accounts or face a 30 percent withholding tax on certain payments. The agency recently opened an online registration portal.
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Text of the first FAQ on the general online registration system is at http://www.irs.gov/Businesses/Corporations/FAQsFATCARegistrationSystem.
Text of the second FAQ for qualified intermediaries is at http://www.irs.gov/Businesses/Corporations/Frequently-Asked-Questions-FAQs-FATCA–Compliance-Legal.