FATCA e-alert issue 2014-34

FATCA e-alert issue 2014-34

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Draft instructions - Information returns, and compliance with certain FATCA filing requirements

The IRS posted a draft version (as of 14 October 2014) of the general instructions for certain information returns—Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G—for the 2015 tax year.

The 29-page draft instructions (PDF, 500 KB) note that new for 2015 are the following items:

  • FATCA filing requirements of certain foreign financial institutions (in general, the FATCA requirements under chapter 4 may be satisfied by reporting under the election provided by the regulations)
  • Truncated taxpayer identification numbers to be used on payee statements (reflecting changes made in final regulations)
  • A new form for a qualified longevity annuity contract held by defined contribution plans, IRAs, and eligible government plans—new Form 5498-A

The draft instructions were provided in draft form for comments, and will be subject to OMB approval before being finalized.

Latin America - Network of IGAs under U.S. FATCA regime

According to the U.S. Treasury Department, intergovernmental agreements (IGAs) to implement the FATCA regime have been signed by representatives of several Latin American countries and the United States.

According to the U.S. Treasury Department website, as of early October 2014, the following countries in the Americas (in both North and South America and in the Caribbean) have executed Model 1 IGAs with the United States under the FATCA regime:

  • Brazil
  • British Virgin Islands
  • Canada
  • Cayman Islands
  • Costa Rica
  • Honduras
  • Jamaica
  • Mexico

Treasury reports that Bermuda and Chile have signed Model 2 IGAs with the United States.

Other jurisdictions that have reached FATCA agreements “in substance” (for Model 1 IGAs) and have consented to being named on a list maintained by Treasury include:

  • Anguilla
  • Antigua and Barbuda
  • Bahamas
  • Barbados
  • Colombia
  • Curaçao
  • Dominica
  • Dominican Republic
  • Grenada
  • Guyana
  • Haiti
  • Panama
  • Peru
  • St. Kitts and Nevis
  • St. Vincent and the Grenadines
  • Turks and Caicos Islands

Nicaragua and Paraguay have agreed “in substance” to a Model 2 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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