Insurance Industry Seeks Reprieve From Form 1099 FATCA Reporting

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Oct. 20 —  U.S. insurance companies don't like the extra reporting burdens their overseas operations are facing under the Foreign Account Tax Compliance Act combined with existing requirements.

The industry is asking the Internal Revenue Service to lighten that burden, asserting that the layers of reporting now being imposed could hurt the ability of U.S. companies to compete in foreign markets and create privacy concerns for overseas customers.

Enacted in 2010, FATCA requires foreign financial institutions to report their U.S.-owned accounts to the IRS under Chapter 4 of the tax code or face, in some cases, a 30 percent withholding tax on their U.S.-source income.

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