AICPA – IRS issues draft FATCA report form

by Sabrina I. Pacifici on August 19, 2013

Sally P. Schreiber, J.D. August 15, 2013 – Journal of Accountancy: “On August 16, 2013, the IRS released a draft Form 8966, FATCA Report, which will be used by foreign financial institutions (FFIs) and withholding agents to comply with their FATCA reporting and withholding requirements.  Under the Foreign Account Tax Compliance Act (FATCA), enacted as part of the Hiring Incentives to Restore Employment Act of 2010, P.L. 111-147, U.S. withholding agents are required to withhold tax on certain payments to FFIs that do not agree to report certain information to the IRS regarding their U.S. accounts and on certain payments to certain nonfinancial foreign entities (NFFEs) that do not provide information on their substantial U.S. owners to withholding agents. In the preamble to the FATCA final regulations (T.D. 9610), the IRS stated that Form 8966 “will be used by FFIs (including QIs [qualified intermediaries], WPs [withholding foreign partnerships], WTs [withholding foreign trusts]) and withholding agents (in limited circumstances) to comply with their [FATCA] reporting obligations. This new Form 8966 will set forth all the information that must be reported with respect to financial accounts in accordance with these regulations.”

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