IRS issues technical corrections to FATCA rules

Sep 12, 2013

The IRS has issued correcting amendments to January final rules implementing the Foreign Account Tax Compliance Act (FATCA).
The correcting amendments to T.D. 9610, issued Sept. 9, make technical modifications to the regulatory language in the law, the IRS said, and added such clarifications as a cross-reference in the definition of a foreign financial institution withholding statement to statement reporting required under Chapter 61.
The changes were also made to ensure that the final regulations are coordinated with other rules contained in other regulations, the IRS said.
T.D. 9610 is intended to stop cross-border tax evasion. It requires foreign financial institutions to tell the IRS about their U.S.-owned accounts. If a foreign financial institution doesn't comply, a 30% withholding tax could apply to payments it receives on U.S. investments.
The corrections were effective Sept. 10.