Re: Overview of New Regulation: Foreign Account Tax Compliance Act (FATCA): Effective July 1, 2014
This letter serves to inform you of the new regulation referenced above, which will become effective on July 1st 2014:
What is FATCA?
On July 1, 2014, regulations released by the U.S. Treasury Department and the Internal Revenue Service (IRS) for the Foreign Account Tax Compliance Act (FATCA), will become effective. FATCA creates new information reporting and withholding rules for payments made to certain Foreign Financial Institutions (FFI) and Non-Financial Foreign Entities (NFFE). The primary goal of FATCA is to reduce U.S. tax evasion and gain information about U.S. persons with respect to offshore financial assets. FATCA is aimed at ensuring U.S. taxpayers are paying the appropriate income taxes and all U.S. sourced income (withholdable payments) are subjected to U.S. income taxes.