The U.S. Treasury Department recently issued proposed regulations interpreting sections of the Internal Revenue Code (the Code) commonly referred to as the Foreign Account Tax Compliance Act (FATCA). The proposed regulations, which are lengthy and complex, raise reporting and withholding tax issues for trustees of non-U.S. trusts and, indirectly, U.S. citizen and resident beneficiaries of foreign trusts. These questions and answers address some of the most important of these issues. Please visit http://www.mwe.com/info/news/fatca.htm for a general discussion of the proposed regulations.
1. WHAT IS FATCA?
FATCA is U.S. legislation that was enacted in 2010 to prevent U.S. persons from using foreign accounts and foreign entities to evade U.S. tax. FATCA generally requires U.S. persons—including U.S. banks, brokers and companies—and foreign financial institutions that have entered into agreements with the Internal Revenue Service (IRS) to withhold 30 percent of certain payments (described below) made to a foreign entity unless the entity qualifies for an exemption or complies with specified reporting requirements that are designed to disclose U.S. persons holding accounts with or interests in the entity.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Topics: FATCA, FFI, IRS, NFFE, U.S. Treasury
Published In: Administrative Agency Updates, Finance & Banking Updates, International Trade Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© McDermott Will & Emery | Attorney Advertising