Unveiling the Secrets of FATCA Pass-Through Payments Your 2017 Guide to International Tax Reporting

o U.S. credit union FATCA due diligence and withholding begin January 1, 2017 ... (“foreign passthru payment” will be defined in a future IRS ... be required to withhold on foreign passthru payments until January 1, 2017. Nevertheless, if the passthru payment itself is an Income Payment ... In 2010, Congress passed the Foreign Account Tax Compliance Act (FATCA), to reduce tax evasion by US taxpayers holding funds in foreign accounts. Deferral of Effective Date of “Passthru Payment” Rules. The proposed regulations defer until at least 2017 the application of the rules ... As mentioned above, the Regulations fail to address how "foreign passthru withholding" is to work in practice. ... 2017, being the earliest date ... The proposed regulations defer withholdings on pass-through payments. A pass-through payment is any payment made by a foreign financial ... Payments treated as foreign passthru payments may be treated as ... January 1, 2017, gross proceeds from the sale or disposition of property of a type. "Passthru" Payments. Under the Proposed Regulations, withholding will not be required with respect to "foreign passthru payments" before January ... 1474, commonly referred to as FATCA) requires withholding agents to withhold 30% of certain payments to a foreign financial institution (FFI) ... ending in 2017. If an institution fails to comply ... withholding on “Passthru” payments (income payments from an FFI to a foreign individual or entity.