Today the IRS announced an extension to the FATCA implementation timings. Notice 2013-43, available online  , pushes back a number of key dates by 6 months including the registration deadlines, commencement of withholding, the implementation of onboarding changes and the registration deadlines. The Notice also provides some practical guidance on the use of the registration portal and treatment of entities in jurisdictions looking to enter an Intergovernmental Agreement. 

We will be analysing the Notice in detail over the coming days, however, initial highlights include:

  • Withholding does not commence until after 30 June 2014
  • FATCA compliant procedures must be in place by 1 July 2014
  • Preexisting accounts are those in existence as at 30 June 2014 and the due diligence requirements are moved back 6 months
  • The first reporting date remains in March 2015, however, this is only with respect to the 2014 calendar year.
  • The FATCA registration website is projected to be accessible to financial institutions on 19 August 2013.
  • The IRS will electronically post the first IRS FFI List by 2 June 2014, and will update the list on a monthly basis thereafter.
  • To ensure inclusion in the June 2014 IRS FFI List, FFIs would need to finalize their registration by 25 April 2014.
  • Clarification on the treatment of Financial Institutions operating in jurisdictions that have signed an Intergovernmental Agreement – a  jurisdiction will be treated as having in effect an IGA if the jurisdiction is listed on the Treasury website as a jurisdiction that is treated as having an IGA in effect.
  • Treasury and the IRS intend to provide a list of jurisdictions that will be treated as having in effect an IGA, even though that IGA may not have entered into force as of 1 July 2014.
  • The Notice contains language indicating that the changes are expected to apply in jurisdictions that have already signed IGAs under the relevant most favoured nation articles.

These changes are likely to be welcome news for businesses impacted by FATCA. We would be happy to discuss how the changes affect your existing FATCA programmes and how they need to be reflected in project timelines.

Chris Tragheim
Chris is a partner in the Financial Services Tax Group in London. He specialises in information reporting and withholding and is the global lead partner in respect of the U.S. Qualified Intermediary regime.

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