IRS publishes updated FATCA IDES Technical FAQs

On 9 September 2015, the IRS published updated FATCA IDES Technical Frequently Asked Questions (FAQs) to its website (Link). New FAQs (FAQs C22 and C23)  were added to explain how to use the FATCA XML Schema to amend or void  a FATCA report. Additionally, FAQ D12 was updated to explain the process of getting confirmation that files transmitted via IDES were received and approved by the IRS.

Cayman Islands Department of International Tax Cooperation announces it is close to finalizing FATCA reports

On 21 August 2015, the Cayman Islands Department of International Tax Cooperation (DICT) announced that it is “in the final stages of preparing data to be provided to the IRS” (Link). For these purposes, the Cayman AEOI Portal closed on 28 August 2015 and as a result late reporting could not be accepted after that date.

Croatia announces delay in FATCA implementation with reporting in 2016

On 10 September 2015, the Croatian Tax Authority announced (Link – Croatian) that the exchange of information between Croatia and the United States under the FATCA Intergovernmental Agreement between the two countries would occur no later than September 2016. During this period, Croatian Financial Institutions will be “deemed-compliant” and would not be subject to withholding.

Philippines announces the submission of FATCA reports in 2016

On 1 September 2015, the Philippines Bureau of Internal Revenue (BIR) announced that pending the entry into force of the IGA, financial institutions will not have to submit information on reportable accounts until the second quarter of 2016 (Link). According to the same announcement, the reports to be submitted in 2016 will include information for both 2014 and 2015.

Update regarding the exchange of tax information via International Data Exchange Service

The opening of the International Data Exchange Service (IDES) by the Internal Revenue Service (IRS) in January 2015 was seen as a milestone in the implementation of the provisions of the Foreign Account Tax Compliance Act (FATCA). IDES provides a secure system of automated, standardized information exchanges between the IRS and host country tax authorities (HCTAs), financial institutions (FIs), and other filers that submit FATCA reports directly to the IRS.

Over the past few months, reporting FIs have been filing FATCA reports with HCTAs in compliance with local deadlines. In recent weeks, HCTAs have, in turn, begun to report information received from their reporting FIs to the IRS through IDES. HCTAs designed their local reporting obligations based on initial IRS guidance. Consequently, the reporting standards in many partner jurisdictions do not contain the latest IRS data controls. As such, certain HCTAs received error notices from IDES based on the newly implemented IRS data controls. This could lead to a series of notices being sent to FIs in partner jurisdictions potentially requiring the resubmission of FATCA reports by FIs to reflect the updates.

For more information see PwC Tax Insights

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