IRS’ Technical Corrections for FATCA Final Regulations
Posted by William Byrnes on September 17, 2013
This document > IRS Link Here < contains the IRS’ corrections to the FATCA final regulations (TD 9610), which were published in the Federal Register on Monday, January 28, 2013 (78 FR 5874). The FATCA regulations relate to information reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on certain payments to FFIs and other foreign entities.
The final regulations contained a number of items that needed to be corrected or clarified. Several citations and cross references are thus corrected by this IRS Technical Correction.
The correcting amendments also include the addition, deletion, or modification of regulatory language to clarify the relevant provisions to meet their intended purposes. Additions, deletions, and modifications are also made to ensure that the rules in the final regulations are coordinated with other rules contained in other relevant regulations.
For example in §1.1471-3(c)(3)(iii)(B)(2), the definition of an FFI withholding statement was modified to add an applicable cross reference to the reporting on the statement that is required under chapter 61 (in addition to the reporting required under chapters 3 and 4); to delete an incorrect reference to a pool of payees exempt from chapter 4 withholding; and to add the modified requirements of an FFI withholding statement provided by a Qualified Intermediary that should have been referenced in this paragraph.nd modifications are also made to ensure that the rules in the final regulations are coordinated with other rules contained in other relevant regulations.