IRS issues Notice of proposed rulemaking

On 16 May 2019, the U.S. Internal Revenue Service (“IRS”) issued a Notice of proposed rulemaking with regard to the Regulations Reducing Burden under the Foreign Account Tax Compliance Act (“FATCA”) and Chapter 3 (Link). This document contains proposed regulations eliminating withholding on payments of gross proceeds, deferring withholding on foreign pass-through payments, eliminating withholding on certain insurance premiums, and clarifying the definition of investment entity. This notice of proposed rulemaking also includes guidance concerning certain due diligence requirements of withholding agents and guidance on refunds and credits of amounts withheld.

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