FATCA is an important development in U.S. efforts to combat tax evasion by U.S. persons holding investments in offshore accounts. Under FATCA, certain U.S. taxpayers holding financial assets outside the U.S. must report those assets to the IRS. FATCA will also require foreign financial institutions to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. IRS Notice 2013-43 (PDF – 52KB) provides a six-month extension for when withholding will begin (i.e., payments after June 30, 2014) and for implementing new account opening procedures as well as related requirements to comply with FATCA.
Taxpayers can subscribe to the IRS FATCA News and Information list that will provide them updates to the latest IRS news on this subject when they become available.
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