Final Regulations include a step-by-step process for U.S. account identification, information reporting, and withholding by FFIs.
Foreign financial institutions (FFIs) and U.S. withholding agents are given extra time to implement systems to comply.
Withhold a 30% tax on certain payments to non-participating FFIs and account holders unwilling to provide the required information.
Foreign financial institutions (FFIs) must file IRS reports by September 30, 2014.
Information reporting and withholding is the heart of FATCA. At first, Foreign financial institutions (FFIs) must report account numbers, balances, names, addresses, and U.S. taxpayer identification numbers.
The law essentially conscripts FFIs as deputy tax collectors for the IRS, forcing them to report the assets of and any income earned by American clients regardless of where it originated.
FORBES: Coerced Foreign Tax Compliance Is Killing American Jobs
Still another predictable result of the law is that the FFIs and their clients will pull capital from the U.S. even if they have to invest in smaller and less lucrative markets.
FORBES: Coerced Foreign Tax Compliance Is Killing American Jobs
Instead of reporting to the IRS directly, some FFIs can report FACTA data to their own governments who then will exchange this information with the IRS. Treasury also developed a second model intergovernmental agreement.
Under one type of agreement, FFIs can report FACTA data to their own governments who then exchange information with the IRS. Under the second type of agreement, FFIs must register with the IRS and report FATCA data directly.
FFIs should all just get on board and be compliant little institutions, even though they all hate this thing called FATCA. For the FCC, there is money to be made off the regulatory teat, if you just consult with the them, your problems will be solved, for a price, of course.
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