According to a program manager in the IRS Large Business and International Division, IRS review of financial information provided by foreign financial institutions will begin early in 2016. The reason for this delay is that it is estimated that it will take approximately one year for 2014 data, collected in early 2015, to be processed, prepared and provided to the agency’s examiners.
It is important to note that this timeframe only applies to IRS review of foreign financial institutions and their compliance with FATCA, and that the financial information that the institutions report on the deposits of US taxpayers will likely be available immediately for taxpayer audits beginning in 2015.
See Jaime Arora, “FATCA Audits Likely to Begin in Early 2016,” Tax Notes Today (June 12, 2014).
Posted by Conan Yuzna, Associate Editor, Wealth Strategies Journal.