FATCA Pass-Through for 2017 A Comprehensive Overview

... 2017, the scope of passthru payments will be expanded beyond withholdable payments to include foreign passthru payments. • Grandfathered ... Deferral of Effective Date of “Passthru Payment” Rules. The proposed regulations defer until at least 2017 the application of the rules ... on 'foreign pass thru payments' which is included in the US provisions. ... April 2017, a list of those persons must be sent to the TIA by 31 May 2017 so ... effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden ... The withholding tax is a 30% tax on “withholdable payments.” F.A.T.C.A. also requires participating F.F.I.s (“P.F.F.I.s”) to withhold on “passthru payments” ... On April 6, 2017, the Internal Revenue Service (the IRS) added three new frequently asked questions to its Foreign Account Tax Compliance ... - Withhold tax on foreign passthru payments made to recalcitrant accounts and nonparticipating ... reported in years 2016 and 2017, with ... The February Proposed Regulations extend the date on which FATCA withholding begins on foreign pass-thru payments from 1 January 2015 to 1 January 2017. It is expected that regulations will define the concept before 2017 to permit foreign passthru payment withholding to begin in 2017. 21 January 2013. In 2010, Congress passed the Foreign Account Tax Compliance Act (FATCA), to reduce tax evasion by US taxpayers holding funds in foreign accounts.