Yesterday, the U.S. Department of the Treasury and the Internal Revenue Service issued final regulations (the “Regulations”) implementing the Foreign Account Tax Compliance Act (“FATCA”).
The issuance of the Regulations mark the most recent step in the implementation of FATCA and follows recent progress in international coordination, the development and adoption of model intergovernmental agreements and the modification of key FATCA compliance time lines.
The Regulations, in their final form, attempt to:
| (1) |
build on governmental agreements that foster international cooperation; |
| (2) |
phase in the time lines for due diligence, reporting and withholding, and align them with the intergovernmental agreements; |
| (3) |
expand and clarify the scope of payments not subject to withholding; |
| (4) |
refine and clarify the treatment of investment entities; and |
| (5) |
clarify the compliance and verification obligations of foreign financial institutions. |
With this significant component of the FATCA regime now in place, domestic and foreign financial institutions can once again ramp up the implementation of their existing FATCA compliance plans.
If you have any questions regarding the regulations, please contact Clemente Vazquez-Bello or Gabriel Caballero.
Read a copy of the regulations scheduled to be published on January 28.
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication. Established in 1925, Gunster is one of Florida’s oldest and largest full-service law firms. The firm’s clients include international, national and local businesses, institutions, local governments and prominent individuals. Gunster maintains its presence in Florida with offices in Fort Lauderdale, Jacksonville, Miami, Palm Beach, Stuart, Tallahassee, Tampa, The Florida Keys, Vero Beach and its headquarters in West Palm Beach. Gunster is home to more than 160 attorneys and 200 committed support staff, providing counsel to clients through 18 practice groups including banking & financial services; business litigation; construction; corporate; environmental & land use; government affairs; health care; immigration; international; labor & employment; leisure & resorts; private wealth services; probate, trust & guardianship litigation; professional malpractice; real estate; securities and corporate governance; tax; and technology & entrepreneurial companies. Gunster is ranked among the National Law Journal’s list of the 250 largest law firms. |
