IRS Issues Final FATCA Rules

Legislative Activity

Camp Expected to Release Tax Reform Discussion Draft

This week, House Ways and Means Committee Chairman Dave Camp (R-MI) is expected to release his long-awaited plan for comprehensive tax reform.  It is anticipated that the proposal will be released in discussion draft form, rather than as introductions legislation.

Patton Boggs will provide an analysis of the proposal upon release.

This Week’s Hearings:

• Wednesday, February 26:  The Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations will hold a hearing entitled “Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions in Hidden Offshore Accounts.”

Regulatory Activity

IRS Issues Final FATCA Rules

On February 20, the Internal Revenue Service (IRS) issued final regulations (T.D. 9657) under the Foreign Account Tax Compliance Act (FATCA) dealing with information reporting by foreign financial institutions (FFIs) and withholding payments to FFIs and other foreign entities.  Additionally, the IRS issued final regulations (T.D. 9658) revising the regulations on withholding of tax on certain U.S. source income paid to foreign persons, information reporting and backup withholding on payments made to U.S. persons, and tax treatment of portfolio interest.