Tuesday, March 3, 2015

IRS Opens Gateway for Exchange of FATCA Data on U.S. Owned Foreign Accounts

The gateway is now open for the system countries will use to transmit information on U.S.-owned overseas accounts under the Foreign Account Tax Compliance Act, the IRS announces. All enrollees can use the system to securely send account reports under FATCA, which requires foreign financial institutions to transmit information to the IRS on accounts held by U.S. taxpayers.

The Internal Revenue Service’s Large Business & International division has opened a gateway that financial institutions and the tax authorities abroad can use to send information on financial accounts held by U.S. taxpayers in accordance with the Foreign Account Tax Compliance Act.

We recently posted FATCA Update! - 112 FATCA Agreement To Date! where we discussed that 11 additional countries have signed FATCA agreements with the US  bringing the total to 112 jurisdictions with FATCA agreement.
The new International Data Exchange Service, or IDES, Gateway, will allow financial institutions and the tax authorities in foreign countries to securely send information reports on financial accounts held by U.S. persons. IDES will operate on all major browsers, including Google Chrome and Microsoft Internet Explorer, and will support application-to-application exchanges through secure communication protocols. The IRS said that data transmitted via IDES will be encrypted at both the file and transmission level to safeguard sensitive tax information.

The online address for IDES enrollment and a link to IDES Gateway can be found on the IDES enrollment site, and the IDES User Guide with instructions for enrolling and using IDES can be found on the IDES home page.  To complete IDES enrollment, financial institutions will need to have registered as a participating financial institution through the IRS FATCA Registration System and have a global intermediary identification number, or GIIN, that appears on the current IRS FATCA Foreign Financial Institution list.

The IRS is encouraging financial institutions and host country tax authorities to complete the enrollment process, which began in January, and initiate transmission before the Form 8966 reporting deadline.
Form 8966 is required to be filed for the 2014 calendar year on or before March 31, 2015. 
An automatic 90-day extension of time to file Form 8966 can be requested. For calendar year 2014, only an automatic 90-day extension of time to file Form 8966 will be provided to all filers (including those filing electronically), without the need to file any form or take any action. For more information, review the 2014 Instructions for Form 8966.

For help or questions about IDES enrollment, transmission or system alerts, users can contact IDES Customer Support at 1-800-613-IDES (4773) or by email at helpdesk@ides-support.com. IDES Customer Support is available 24 hours a day except on U.S. federal holidays. For additional information about data preparation or other aspects of FATCA reporting, visit the IRS FATCA website.

The IRS FATCA Reports ICMM Notifications User Guide and the IRS FATCA Reports ICMM Notification XML Schema User Guide are now posted and live on the IRS FATCA ICMM Report Notifications webpage.

Do You Have Unreported Foreign Income?

Your Information Is Due To Be Reported 
To The IRS By March 31, 2015!

Want to Know if the OVDP Program is Right for You?

Contact the Tax Lawyers at
Marini & Associates, P.A.  


for a FREE Tax Consultation
Toll Free at 888-8TaxAid ((888) 882-9243)





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