On 24 October 2012, the IRS released Announcement 2012-42 changing several of the previously published dates for FATCA compliance. These changes will be incorporated in the Final Regulations when published.
Specifically, these changes are as follows:
- FFI Agreements. The deadline for FFIs to enter into an FFI Agreement has been moved to 31 December 2013, instead of 30 June 2013.
- Gross Proceeds Withholding. Withholding on gross proceeds will start on 1 January 2017, instead of 1 January 2015.
- New Account Opening Procedures. Withholding agents generally will be required to implement FATCA compliant account opening procedures by 1 January 2014, instead of 1 January 2013.
Due Diligence on Preexisting Obligations. i.e. any account, instrument or contract maintained or executed prior to 1 January 2014.
- Pre-existing entity account documentation for clients identified as Prima Facie FFIs has moved to 30 June 2014 for U.S. Withholding Agents, Participating FFIs, and Registered Deemed-Compliant FFIs, instead of 31 December 2013 for U.S. Withholding Agents (USWAs).
- Pre-existing entity account documentation for clients not identified as Prima Facie FFIs has moved to 31 December 2015 for USWAs, Participating FFIs, and Registered Deemed-Compliant FFIs instead of 31 December 2014 for USWAs and 30 June 2015 for Participating FFIs and Registered Deemed-Compliant FFIs.
- Pre-existing individual account documentation for high value clients has been generally extended to 31 December 2014 for Participating FFIs instead of 30 June 2014.
- Pre-existing individual account documentation for non-high value clients has been generally extended to 31 December 2015 instead of 30 June 2015.
- FATCA Reporting. Participating FFIs are required to file information reports with the IRS (on as yet unreleased IRS forms) no later than 31 March 2015 in respect of both 2013 and 2014, instead of 30 September 2014.
Full details of announcement 2012-42 may be viewed here.