With the January 1, 2014 implementation date for the Foreign Account Tax Compliance Act (FATCA) fast approaching, the IRS issued additional guidance today, including a long-awaited and much anticipated draft Foreign Financial Institution (FFI) Agreement. In Notice 2013-69, the IRS provides the following:
- guidance to FFIs entering into agreements directly with the IRS, and to those reporting through a Model 2 IGA.
- incorporates updates to certain due diligence, withholding, and other reporting requirements, and
- a draft FFI agreement which will be finalized by December 31, 2013.
In a press release which accompanied Notice 2013-69, the Treasury Department and IRS assert that “FATCA is rapidly becoming the global standard in the effort to curb offshore tax evasion” (despite generating considerably fury around the world) and state that to date, Treasury has signed nine Intergovernmental Agreements (IGAs), reached 16 agreements in substance, and is engaged in related conversations with many more jurisdictions.