The IRS released Notice 2014-59 on October 10, announcing its intention to amend certain provisions of the temporary coordination regulations under Foreign Account Tax Compliance Act (FATCA) regime with regard to modified applicability dates. The IRS stated in the notice that it will provide withholding agents, foreign financial institutions (FFIs) and payers timeframe until January 1, 2015 to coordinate and apply new entity account procedures. The advanced copy of amendment in Notice 2014-59 is applicable to two areas:
• The standards of knowledge applicable to a withholding certificate to document an entity payee; and
• The standards of documentary evidence provided by a payee that a withholding agent or payer may rely on with regard to foreign status of the payee for the purpose of chapters 3 and 61.
See IRS Notice 2014-59.
Posted by Jiaqi Wang, Associate Editor, Wealth Strategies Journal