The Internal Revenue Service (IRS) has issued Notice 2011-53 (the “Notice”), which provides a modified timeline for the implementation of the new reporting and withholding requirements enacted by the Hiring Incentives to Restore Employment Act of 2010 (the “HIRE Act”). The Notice defers the commencement date of the withholding tax applicable to “foreign financial institutions” (“FFIs”) and non-financial foreign entities from January 1, 2013 to (i) January 1, 2014 for U.S. source fixed or determinable, annual or periodical (FDAP) income and (ii) January 1, 2015 for all other payments subject to HIRE Act withholding (such as gross proceeds from the disposition of securities that could produce U.S. source interest and dividends). The Notice provides that in order to avoid the withholding tax beginning January 1, 2014 and in order to be treated as a “participating FFI”, an FFI must enter into an agreement with the Secretary of the Treasury as required by the HIRE Act (“FFI Agreement”) by June 30, 2013 (rather than January 1, 2013, as previously required). Any FFI that enters into an FFI Agreement after June 30, 2013 and prior to January 1, 2014 will also be treated as a participating FFI but may not be identified as such in time to avoid being withheld on. The Notice also simplifies the first year of information reporting that is required to be provided to the IRS by an FFI under an FFI agreement.