Richard Cornelisse

18 Countries Have Signed Intergovernmental Agreements with the U.S. for FATCA Implementation

In Audit Defense, General on 27/02/2014 at 11:04 am

The United States Department of the Treasury recently released the text of six new intergovernmental agreements (IGAs) for the implementation of FATCA (the Foreign Account Tax Compliance Act).

Four of these are reciprocal Model 1 IGAs between the United States and Malta, the Netherlands, Guernsey, and the Isle of Man.  The fifth is a reciprocal Model 1A IGA between the United States and Jersey.  The sixth is a reciprocal Model 2 IGA between the U.S. and the Netherlands.

Under a Model 1 IGA, financial institutions (FFIs) in the foreign jurisdiction report specified information about their U.S. accounts to the tax agency of their government, which in turn reports the information to the IRS on an automatic basis.

Under a Model 2 IGA, the foreign jurisdiction agrees to direct and enable all relevant financial institutions (FFIs) in the jurisdiction to report specified information about their U.S. accounts directly to the IRS.

FFIs also report to the IRS aggregate information with respect to holders of pre-existing accounts who do not consent to have their account information reported, on the basis of which the IRS may make a “group request” to the partner jurisdiction for more specific information.

The signing of these six new IGAs is brings the number of FATCA agreements to 18.

The IGAs previously signed are with the Cayman Islands, Costa Rica, Denmark, France, Germany, Ireland, Japan, Mexico, Norway, Spain, Switzerland, and the United Kingdom.

AUTHOR

Marianne Couch

Marianne Couch, JD Principal, Cokala Tax Information Reporting Solutions, LLC Marianne Couch, JD, of the Cokala Tax Group, is an advisor on U.S. federal and state tax information reporting compliance. She is a frequent lecturer at major tax conferences and the author of numerous published articles and the Master Guide to Form 1099 Compliance. Prior to co-founding the Cokala firm in 2007, she served for many years as Research Director of Balance Consulting, and chaired special training and advisory services provided to large organizations and academic and nonprofit institutions. She was previously the executive director of the National Association of Form 1099 Filers, Inc., and a member of the IRS Information Reporting Program Advisory Committee (IRPAC), where she served as Chair of the IRPAC Subcommittee on Small Business and Self-Employed (SBSE) tax issues.

via 18 Countries Have Signed Intergovernmental Agreements with the U.S. for FATCA Implementation – Thomson Reuters Tax & Accounting.

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