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The Second FATCA Notice: A Sharper Enforcement Tilt  


Author:  Susan  Nevas.


Source: Volume 24, Number 06, July/August 2011 , pp.13-26(14)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

Tension between loophole closing and industry burden easing marked Notice 2010-60, the initial Treasury/IRS guidance on the 2010 foreign account tax compliance legislation known as FATCA. In follow-on Notice 2011-34, the mood seems different. Setting the tone are “pass-through payment” rules designed to keep covered foreign financial institutions (FFIs) from bolting the FATCA tent and elaborate new rules for vetting private banking clients and other wealthy account holders. Treasury and the IRS will entertain more avoidance-proof alternatives to FFI Agreements and will continue to adjust the details of Agreement and pass-through payment implementation, but little else.

Keywords: withholding, foreign financial institutions (FFIs); Foreign Account Tax Compliance Act; pass-through payments; Notice 2011-34; Notice 2010-60; foreign account; information reporting

Affiliations:  1: Attorney at Law.

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