IRS Unveils FATCA Draft Agreement, Rule Updates With Key Changes

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The Internal Revenue Service has issued guidance, including a draft agreement, for foreign financial institutions to comply with the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act.
Notice 2013-69 is the next step in implementation of FATCA, which requires FFIs to report their U.S.-owned accounts to the IRS or pay a 30 percent withholding tax on certain U.S.-source payments made to them.
The notice, released Oct. 29, previews proposed guidance, the IRS said, and provides a draft agreement for participating FFIs that are directly engaging in agreements with the IRS and for those reporting through a Model 2 intergovernmental agreement (IGA). The IRS said the FFI agreement will be finalized by Dec. 31.

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