IRS Notice 2011-53 delays both the FATCA §1471 withholding and reporting requirements one year to January 1, 2014, and phases in those requirements over two years starting in 2014.
The revised version of Notice 2011-53 extends the application of the phase-in to §1472 as well.
We have provided a Table Below listing the details of the time schedule as it relates to FATCA implementation.
This delay in the withholding and reporting procedures should allow enough time to permit FFIs to build their computer systems, request and receive any required regulatory approvals, and train appropriate personnel to comply with the rules.
Of course, whether enough time has been provided depends on the resolution of the conflict-of-law issues and the promulgation of proposed regulations by December 31, 2011, and final regulations by the summer of 2012.
|Implementation of FATCA Requirements|
|Reporting of U.S.
|New Accounts, Documented U.S. Accounts,||Transition Date Under 2011-53|
|and Private Banking Accounts|
Limited Reporting for First Year: This limited reporting also applies to FFIs that elect to report as a U.S. FFI under §1471(c)(2)
• Name, address, and U.S. TIN of each U.S. person who is an account holder or, if the account is owned by a U.S.-owned foreign entity, name, address, and U.S. TIN of each substantial U.S. owner;
• The account balance as of December 31, 2013, or, for closed accounts, the balance immediately before closure; and
• The account number.
May elect to report under Notice 2011-34.
Must report any recalcitrant account holders.
|Form W-9 received by June 30, 2014, must be reported to IRS by September 30, 2014|
|Reporting in accordance with Notice 2011-34 as implemented in future regulations.|
|Types of Withholdable Payments||Transition Date Under Notice 2011-53|
|U.S.-Source FDAP Payments (e.g., interest, dividends, royalties, rent, etc.).||Payments made on or after January 1, 2014|
|Gross Proceeds (i.e., gross proceeds from the sale of assets that produce or may produce U.S.-source FDAP income).||Payments made on or after January 1, 2015|
|Passthru Payments. Note that a U.S.-source FDAP payment that also would be a passthru payment is subject to the January 1, 2014, effective date.||Payments made on or after January 1, 2015|
|Expiring QI, WFP, and WFT Agreements||Transition Date Under Notice 2011-53|
|Original expiration date of December 31, 2012||Automatic extension until December 31, 2013|
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