On July 12, 2013 the Internal Revenue Service (the “IRS”) issued Notice 2013-43 (the “Notice”) extending the deadline for the implementation of the Foreign Account Tax Compliance Act (“FATCA”). In general, the FATCA deadlines have been extended by six months.
With no final revised W-8 forms, intergovernmental agreements still in a state of flux and draft agreements with the IRS not having been issued, the IRS has realized that it would have been impractical to begin registration and compliance with FATCA. So, although the IRS FATCA registration portal was scheduled to open on July 15, 2013, the opening of the portal has been delayed and FATCA
deadlines have been extended six months. During that time, it is hoped that forms and other documents and agreements will be finalized, allowing fund managers and their investors to approach FATCA compliance in a less frenzied and more methodical way.
Key Extensions of Deadlines:
The FATCA portal (for registration of foreign financial institutions or FFIs) as mentioned above
was expected to be accessible on July 15, 2013.
The deadline for registration with the IRS so that an FFI would be included on the first list of FFIs
published by the IRS was October 25, 2013.
Under the Notice, an FFI must now register with the IRS by April 25, 2014.
The deadline for the implementation of new account opening procedures was January 1, 2014.
Withholding was scheduled to begin on January 1, 2014.
The first report of an FFI of its U.S. accounts for 2013 and 2014 was due on March 31, 2015.
Under the Notice, the report is still due on March 31, 2015, but reporting is required only for 2014 and not for 2013.
Obligations that are outstanding on January 1, 2014, were treated as “grandfathered obligations” and not subject to FATCA withholding.