A closer look at the significance of recently released drafts of certain FATCA-related forms.
Preparation for compliance with FATCA is well underway and a key element will be the various forms used to communicate between withholding agents, their payees, and the Internal Revenue Service (IRS). As important FATCA compliance dates draw near, the IRS has recently released drafts of certain FATCA-related forms. These forms are important because they will impact both existing US information reporting requirements and FATCA compliance going forward. Specifically, they will facilitate the identification of the payee’s FATCA classification, registration with the IRS, and the year-end reporting requirements. Many of these forms are already currently used to facilitate identification of payees and reporting under Chapter 3, but are being revised to accommodate the FATCA requirements.