The US Treasury and the Internal Revenue Service (IRS) have issued a notice (Notice 2013-69) for foreign financial institutions (FFIs) looking to comply with the information reporting and withholding tax provisions of the Foreign Account Tax Compliance Act (FATCA).

The notice previews proposed guidance and provides a draft agreement for participating FFIs directly engaging in agreements with the IRS and those reporting through a Model 2 intergovernmental agreement (IGA).

It provides FFIs with advance notice prior to the beginning of FATCA withholding and account due diligence requirements on July 1, 2014, and with guidance to FFIs entering into agreements directly with the IRS, and to those reporting through a Model 2 IGA. The notice incorporates updates to certain due diligence, withholding and other reporting requirements, and includes a draft FFI agreement.

Deputy assistant secretary for International Tax Affairs, Robert B. Stack said: 'The FFI agreement and forthcoming guidance have been designed to minimize administrative burdens and related costs for FFIs and withholding agents. [The] preview demonstrates the Administration's commitment to ensuring full global cooperation and a smooth implementation.'

The first report of FATCA information is due in 2015. The IRS FATCA registration website is already open so that FFIs can begin testing the registration process and entering information.

More details are available HERE