On 13 October 2016, the Internal Revenue Service (“IRS”) in the United States released Industry Concerns and Suggestions from its FATCA Roundtable (Link) which was help on 16 November 2015. Among the highlights are:
- The industry has expressed their difficulty in complying with and interpreting how FATCA should apply when operating in multiple jurisdictions (PwC’s CITT Compare Tool would help)
- The Information Data Exchange System (IDES) is not as user friendly as the Registration Portal, for example and industry would like to see enhancements.
- Industry would like to see real-time updates to the FFI list. Although there is a 90 grace-period for GIIN updates to a customer’s information, the manual tracking of this is burdensome.
- The industry also requested that the IRS provide draft forms and instructions in order for industry to provide feedback and suggestions for the IRS to consider. In addition, the changes to the various codes on the Form 1042-S without much lead time cause issues for the industry.
- The complexity of the FATCA forms was also highlighted as a challenge.
- The industry also asked for more clarity and easing of rules related to the electronic transmission, signature and storage of withholding statements and certificates.
- Finally, industry would like to see an alignment of FATCA and CRS as one standard from a compliance and enforcement perspective.