IRS Coordinates Due Diligence Timelines for FATCA Requirements

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IRS announces it will significantly reduce the administrative burden of completing due diligence requirements for U.S. withholding agents and foreign financial institutions under the Foreign Account Tax Compliance Act, by aligning the time frames placed on withholding agents to identify the U.S. accounts to be reported to IRS. Withholding agents, including participating foreign financial institutions and registered FFIs deemed compliant, generally will be required to implement new account-opening procedures by Jan. 1, 2014, IRS says. However, under the proposed FATCA rules, U.S. withholding agents and participating foreign financial institutions have different requirements, and those different requirements have different timelines. Treasury Associate International Tax Counsel Jesse Eggert says that the guidance should help answer many difficult implementation questions.