FATCA e-alert issue 2014-31

FATCA e-alert issue 2014-31

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FATCA Information Gathering - Not Immune to Phishing Scams

The IRS issued a fraud alert (IR-2014-92) to notify financial institutions complying with the Foreign Account Tax Compliance Act (FATCA) that “scam artists” are actively masquerading as IRS personnel with the goal of fraudulently obtaining account holder identity and financial account information. These fraudulent solicitations, known as “phishing” scams, are typically carried out through the use of unsolicited emails and/or web sites that pose as legitimate contacts in order to deceptively obtain personal or financial information.

 

According to IR-2014-92, financial institutions directly registered to comply with FATCA and those in jurisdictions that have Intergovernmental Agreements (IGAs) in place have been approached by persons representing themselves as the IRS. The IRS has reports of incidents from multiple countries and continents.

 

The IRS stresses:

 

  • It does not solicit specific account holder identity information or financial account information from financial institutions over the phone, via fax, or e-mail.
  • It does not solicit FATCA registration passwords or similar confidential account access information.
  • Financial institutions or their representatives that suspect they are the subject of a “phishing” scam should report the matter to the Treasury Inspector General for Tax Administration (TIGTA) at +1 800-366-4484.
  • Any suspicious e-mails that contain attachments or links in the message should not be opened, and the e-mail should be forwarded to phishing@irs.gov.

 

For your reference

 

Updated, clarified guidance under revised QI agreement

On 23 September 2014, the IRS updated information for entities that apply to enter into (or have entered into) the revised qualified intermediary (QI) agreement, pursuant to Rev. Proc. 2014-39.

In June 2014, the IRS issued Rev. Proc 2014-39 for updating the QI withholding agreement, to reflect the FATCA regime. Read our FATCA e-Alert 2014-24.

On 23 September 2014, the IRS posted updated guidance for certain entities that apply to enter into or have entered into the revised QI agreement. The guidance reflects:

  • Corrections relating to an entity’s Form 1099 reporting responsibility, in general so as to coordinate such responsibility rules with the rules that apply for FATCA Model 1 FFIs (foreign financial institutions)
  • Modifications to the rules for private arrangement intermediaries (PAIs) and joint account and agency options under the revised QI agreement, to be consistent with provisions in the joint account and agency option section of the revised withholding foreign partnership and withholding foreign trust agreements
  • Rules allowing new QIs for calendar year 2014 (i.e., entities that apply for QI status at any time during the 2014 calendar year) to act as a QI in accordance with the former QI agreement from 1 January 2014, until 30 June 2014, as if the QI agreement were effective during that period
  • Rules for QI application and renewal procedures for certain central banks of issue

Model 1 IGA signed by Lithuania

The U.S. Treasury Department posted text of the intergovernmental agreement (IGA) to implement the FATCA regime, as signed by representatives of Lithuania and the United States.

On posting the IGA on 26 August 2014, the Treasury Department indicated that the FATCA agreement (PDF, 393 KB) between Lithuania and the United States follows the Model 1 IGA.

 

For further information, please do not hesitate to contact us.

 

 

 

 

 

 

Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough
 

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