Guidance addresses information reporting and withholding rules

Start adding items to your reading lists:
Save this item to:
This item has been saved to your reading list.

January 2017


The US Department of the Treasury and the Internal Revenue Service recently issued a series of extensive regulatory guidance (combined over 950 pages) related to the US information reporting and withholding rules which impact both US and non-US persons. While a number of provisions of the US Internal Revenue Code and related regulations are affected, most of the impact is to the following areas:

  • Chapter 3 dealing with withholding of tax on nonresident aliens and non-US corporations,
  • Chapter 4 (which is commonly referred to as the Foreign Account Tax Compliance Act or FATCA) relating to the withholding tax used to enforce reporting on certain non-US accounts,
  • Chapter 61 requiring the reporting of certain payments or transactions with respect to US persons who are not exempt recipients,
  • Section 871(m) which provides rules around the taxation and reporting of dividend equivalent payments, and
  • Safe harbor for penalty relief for de minimis incorrect information returns.

Observation: While a significant portion of the guidance codified and further explained changes provided in prior Notices and public comments, a large portion of the guidance is new and will need to be assessed for its impact on existing processes and systems.

Contact us

Dominick Dell'Imperio

Dominick Dell'Imperio

Partner, PwC US

Kevin Brown

Kevin Brown

Principal, Tax Controversy and Regulatory Services Leader, PwC US

Follow us