IRS Deputy Associate Chief Counsel (International) Ronald Dabrowski said FATCA guidance is a key priority. The law requires foreign banks to disclose U.S. owned accounts to U.S. tax authorities or face, in some cases, a 30 percent withholding tax.
Speaking at the fall meeting of the American Bar Association Section of Taxation, Dabrowski said IRS is working on guidance on other tax provisions under the Hiring Incentives to Restore Employment (HIRE) Act (Pub. L. No. 111-147), which created FATCA.
The government is committed to getting proposed rules on the Foreign Account Tax Compliance Act (FATCA) out by the end of the year.
Regulations under new tax code Section 6038D, which imposes penalties if taxpayers do not report specified foreign financial assets on a form attached to their tax returns, should be out soon, Dabrowski said, noting that the recent draft version of the Form 8938 and instructions are “a good indication of where things are going.”
Read more at: Tax Times blog
