Clarity on FATCA Foreign Passthru Payment Reporting Explained

FATCA requires foreign financial institutions (FFIs) to report to the IRS information about financial accounts held by US taxpayers. – foreign passthru withholding (to be defined in future guidance) on non-US source payments by an FFI that doesn't have the benefit of an ... Here, FATCA imposed withholding to on these “foreign pass-through payments” so that U.S. citizens could not avoid U.S. taxation by moving ... FATCA subjects to withholding certain payments made by FFIs to nonparticipating FFIs and recalcitrant account holders (Foreign Passthrough ... Defer withholding on foreign passthru payments; Eliminate withholding on certain insurance premiums; Clarify the definition of investment entity ... The final regulations, like the proposed regulations, do not define foreign-source passthru payments,11 and provide that withholding on foreign- ... ... foreign passthru payments, eliminate withholding on certain insurance premiums, and clarify the definition of investment entities. The ... The principal targets of FATCA enforcement are “foreign financial institutions” (FFIs). An FFI is a foreign entity that is engaged in a banking, ... agent classified under the FATCA rules as a Participating FFI, the definition ... could produce) a foreign passthru payment and cannot produce a withholdable ... In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with ...