IRS re-issues notice 2011-53: Addresses effective date of withholding tax under FATCA on payments to NFFEs

August 2011
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IRS re-issues notice 2011-53: Addresses effective date of withholding tax under FATCA on payments to NFFEs

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The IRS re-issued notice 2011-53 which addresses effective date for withholding tax payments to NFFEs under FATCA guidelines.

On July 25, 2011, the IRS re-issued Notice 2011-53 to clarify that the delayed effective date to withhold tax under FATCA applies to withholdable payments made to all non-financial foreign entities (NFFEs). In the original version of Notice 2011-53 (issued on July 14, 2011), the IRS provided transitional relief for withholding on passthru payments and certain withholdable payments, but was silent as to whether the transitional relief would apply to a withholding agent's obligation to withhold FATCA tax on withholdable payments made to NFFEs.