Thursday, March 13, 2014
FATCA will go into effect on July 1, 2014, and foreign entities that receive payments or allocations of U.S.-sourced income will be subject to a new 30 percent U.S. withholding tax on such income unless such foreign entities comply with FATCA or otherwise are exempt from FATCA. The IRS has declared the July 1st effective date will not be extended. Accordingly, time is of the essence for foreign entities to determine whether FATCA is applicable and, if so, to take steps to become FATCA-compliant by the time FATCA becomes effective.
See Christopher Cawley, Nicola Lemay & Richard Schaul-Yoder, FATCA: With Deadlines Looming, the Time to Act is Now, JD Supra, Feb. 27, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.