IRS Issues Technical Corrections to FATCA Regulations

The IRS issued technical corrections to two sets of regulations relating to FATCA. The first set provides a variety of corrections to the final and temporary regulations issued under FATCA on March 6, 2014, and relates to information reporting by foreign financial institutions ("FFIs") on U.S. accounts and on withholding on certain payments to FFIs. The second set corrects final and temporary regulations that were also issued on March 6, 2014 to coordinate regulations relating to income tax withholding, information reporting and backup withholding to the FATCA regulations.

The corrections are effective as of July 1, 2014, but taxpayers can apply them retroactively from March 6, 2014.

See:Technical Corrections to Regulations Relating to Information Reporting by FFIs and Withholding on Certain Payments to FFIs and Other Foreign Entities; Technical Corrections to Information Reporting and Backup Withholding Regulation. See also: Cabinet FATCA Materials (for Cabinet subscribers only). For more information, please contact Daniel Mulcahy and Mark Howe.