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FATCA Compliance: Preparing for 2013—Notice 2010-60 and Practical Steps to Take Now

Author: Marnin Michaels.; Tom O’Donnell.; Rodney Read.

Source: Volume 24, Number 04, March/April 2011 , pp.5-18(14)

Journal of Taxation and Regulation of Financial Institutions

Abstract:

The 2010 Foreign Account Tax Compliance Act institutes a complex new withholding tax regime on payments made to foreign financial institutions and nonfinancial foreign entities. In August 2010, the Internal Revenue Service issued its first guidance on the Act, in Notice 2010-60. This article discusses and analyzes the Notice, covering grandfathered obligations, which entities qualify as foreign financial institutions or nonfinancial foreign entities, the collection of information and identification of persons by financial institutions, and reporting on U.S. accounts. The authors also provide practical guidance regarding the implementation of FATCA for banks, trust companies, and the fund management industry.

Keywords: FATCA; Notice 2010-60; U.S. withholding tax; Subcommittee on Investigations; HIRE ACT; FFI; NFFE; PFFI

Affiliations: 1: Baker & McKenzie; 2: Baker & McKenzie; 3: Baker & McKenzie.