FATCA implementation delayed until 2014
15 July 2011
On July 14 the US Treasury Department and the Internal Revenue Service (IRS) issued Notice 2011-53, which includes dates by which foreign financial institutions and US withholding agents must apply the rules in the Foreign Account Tax Compliance Act (FATCA).
it postpones levying FATCAs associated taxes until January 1 2014, rather than
2013 as originally stipulated.
FATCA is an important
development in US efforts to combat offshore non-compliance, said IRS
Commissioner Doug Shulman in a press release. At the same time, the IRS recognises that
implementing FATCA is a major undertaking for financial institutions, he added.
[The July 14] notice is a reflection of our serious commitment to implementation
of the statute, but also a serious commitment to listen to the implementation
challenges of affected financial institutions and make appropriate adjustment
to ensure a smooth and timely roll-out, he said.
FATCA, which was signed into law March 18 2010, forces foreign financial
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