Nov. 22 -- The Internal Revenue Service's online portal for foreign financial institutions to register under the Foreign Account Tax Compliance Act has so far logged entries from 6,700 institutions worldwide, an IRS official said.
“We're very pleased with the performance of the portal to date,” said Michael Danilack, IRS deputy commissioner (International), who disputed news reports of connectivity problems for users.
“It's performing well. There has been no crashing,” said Danilack, speaking Nov. 22 at a luncheon for tax practitioners hosted by Bloomberg BNA and Buchanan Ingersoll & Rooney. “There were some minor bugs we fixed right away,” he said, “and we feel confident it will be up and running on time.”
Enacted in 2010, FATCA requires foreign financial institutions that aren't exempt to register and agree to share information with the IRS on their U.S.-owned accounts or face, in some cases, a 30 percent withholding tax on U.S.-source payments made to them. Registration is required to obtain a global intermediary identification number.
The FATCA portal has been operating in a test phase since Aug. 19 , but is expected to go live “sometime after Jan. 1,” Danilack said.
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