The U.S. Department of the Treasury and Internal Revenue Service (IRS) has released the last substantial package of regulations necessary to implement the Foreign Account Tax Compliance Act (FATCA). In pursuit of its objective to detect and deter offshore
tax evasion, FATCA seeks to obtain information on accounts held by US taxpayers in other countries. It requires US financial institutions to withhold a portion of certain payments made to certain foreign financial institutions (FFIs) that do not agree to identify
and report information on US account holders.
These regulations make additions and clarifications to previously issued FATCA regulations and provide guidance to coordinate FATCA rules with pre existing due diligence, reporting, and withholding requirements under other provisions of the Internal Revenue
Code (Code).
Related link:
http://www.treasury.gov/press-center/press-releases/Pages/jl2296.aspx