Reporting and Withholding Requirements for Foreign Financial Institutions Clarified (Notice 2011-53)

The IRS has revised Notice 2011-53 to clarify that the withholding implementation schedule described in the initial release postpones withholding with respect to payments made to nonfinancial foreign entities under Code Sec. 1472(a), as well asCode Sec. 1471(a) withholding.

The IRS is planning to issue regulations by the summer of 2012, prior to the effective date of the new code sections.

Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.