On 30 December 2014, the IRS issued an email announcing an extension of time for qualified intermediaries (QIs), withholding foreign partnerships (WPs), and withholding foreign trusts (WTs) to apply certain requirements of the joint account option under the QI agreement, the WP agreement, or the WT agreement.
The IRS email message (PDF, 80 KB) relates to entities that applied to enter into or have entered into the qualified intermediary (QI) agreement (as published in Rev. Proc. 2014-39) and certain entities that applied to enter into or have entered into the withholding foreign partnership agreement or withholding foreign trust agreement (as published in Rev. Proc. 2014-47).
The IRS email provides notice that section 4.05 of the QI agreement and section 9.01 of the WP agreement and WT agreement are modified to include the following with respect to a QI’s, WP’s, or WT’s application of the joint account option:
Notwithstanding these provisions, a QI, WP, or WT is required to withhold under Chapter 4 with respect to a partnership or trust to which it has applied the joint account option to the extent required under the QI, WP, or WT agreement (for example, a QI, WP, or WT must withhold if it has actual knowledge that the partnership or trust is a nonparticipating FFI).
The IRS has added new pages to the FATCA International Data Exchange Service (IDES) website.
The new pages include:
The IRS also updated and added to a list of “frequently asked questions” (FAQs) concerning IDES technical issues (e.g., data transmission, data encryption and security, and system design).
Read the updated or new FAQs (the most recent updates are noted in red font, as either added or updated on “11-26-2014”).
In December, the Treasury Department posted text of an intergovernmental agreement (IGA) signed on 9 December 2014 by representatives of Singapore and the United States to implement the FATCA regime.
Read text of the Model 1 IGA (PDF, 252 KB) signed by Singapore.
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 examination of the particular situation.
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