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1827

IRS Announces FATCA Due Diligence Timelines (Ann. 2012-42; Summary Table)

The IRS has announced timelines for withholding agents and foreign financial institutions (FFIs) to complete due diligence requirements, as well as additional guidance on gross proceeds withholding and the status of certain instruments under the Foreign Account Tax Compliance Act (FATCA). FATCA was enacted as part of the Hiring Incentives to Restore Employment (HIRE) Act of 2010 (P.L. 111-147 ), and requires withholding agents to withhold 30 percent of certain payments to an FFI unless the FFI has entered into an agreement with the IRS to report information on its U.S. accounts, among other obligations.

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