Round two of FATCA guidance: IRS Notice 2011-34 addresses priority concerns, revises earlier guidance, and introduces new concepts

April 2011
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On April 8, 2011, the Internal Revenue Service (IRS) issued Notice 2011-34 which provides supplemental guidance on the documentation, reporting and withholding requirements under the Foreign Account Tax Compliance Act (FATCA) of 2009 which was enacted in the Hiring Incentives to Restore Employment (HIRE) Act of 2010. This second piece in our FATCA whitepaper series provides an executive summary of the following key points contained in Notice 2011-34, as well as a more in-depth analysis of the seven sections outlined in the notice with a glossary of defined terms.

  • Updated guidance for identifying U.S. accounts among preexisting individual accounts
  • Initial guidance on passthru payments
  • Clarification of deemed compliant status for foreign financial institution (FFI)
  • Further guidance on the reporting on U.S. accounts by FFIs
  • Treatment of qualified intermediaries
  • Application of FATCA to expanded affiliated groups
  • Clarification on the effective date of FFI agreements