IRS Issues New Guidance to Ease FATCA Reporting, Compliance for FFIs

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New IRS guidance is expected to ease some of the compliance burdens for foreign financial institutions and withholding agents seeking to comply with the July 1 implementation date of the Foreign Ac
count Tax Compliance Act.

In Revenue Procedure 2014-38, issued June 24, the Internal Revenue Service said foreign institutions will no longer need to perform duplicative reporting of substantial U.S. owners when a participating FFI receives payments as an intermediary on behalf of a passive non-financial foreign entity.
The Service will also allow intermediaries that are participating foreign institutions to allocate payments to documented account holders that are exempt from reporting and withholding.