Information for Foreign Financial Institutions:
Read the IRS Notices

1. Regulations Relating to Information Reporting by FFIs and Withholding on Certain Payments to FFIs and Other Foreign Entities.
2. Notice 2011-53 — Chapter 4, "Implementation Notice," describes the timeline for the implementation of FATCA and discusses matters that will be addressed in regulations by Treasury and the IRS.
3. Notice 2011-34 — "Supplemental Notice to Notice 2010-60, Providing Further Guidance and Requesting Comments on Certain Priority Issues Under Chapter 4 of Subtitle A of the Code"
4. Notice 2010-60 — "Notice and Request for Comments Regarding Implementation of Information Reporting and Withholding Under Chapter 4 of the Code," IRB 2010-37, dated September 13, 2010.
5. Please click here to view The Act.

Foreign Account Tax Compliance Act: FATCA

In another step towards transparency of the global financial services industry and preventing tax evasion, the Foreign Account Tax Compliance Act (FATCA) was enacted in the US on 18 March 2010. FATCA affects all “Foreign Financial Institutions” (FFIs), including banks, custodians and investment vehicles that invest in or hold US assets and receive US-sourced income on behalf of account holders or investors. 

In the investment world, while responsibility for compliance lies ultimately with fund directors, the reality is that the burden of preparing for FATCA by 30 June 2013 will fall on fund administrators and similar service providers. 

Despite the title of the Act, for most firms FATCA is not only, or even principally, a tax issue. Instead, it is a substantial project likely to require significant changes to systems and procedures. Affected areas will include investor take-on and compliance monitoring processes, a requirement to report annually to the IRS, and identifying US-sourced income and making necessary withholdings.   

As with any significant challenge, robust programme management, including identification of workstreams, adequate resourcing, quality assurance and governance will ensure that the transition to FATCA compliance in all its guises will be successful. 

The Kinetic Partners team has extensive experience of major programme and project implementation and is ideally placed to assist in all aspects of FATCA preparedness.

For the latest  FATCA update please click here

FATCA for funds

How does FATCA impact funds, directors, managers and administrators? Click here to read the key elements and the steps needs for successful implementation.