U.S.-Sourced Payments Pose Significant Risk to Foreign Financial Institutions Not FATCA Compliant, Say Experts
ARLINGTON, Va., April 26, 2011 /PRNewswire-USNewswire/ -- The recent release of Notice 2011-34 shows that the IRS is willing to address the problems identified with the procedures issued last year in Notice 2010-60. Still, there are limits to the administrative relief that the IRS can provide, and Foreign Financial Institutions (FFIs) and their advisors must be prepared for the reporting and withholding requirements that come into effect on January 1, 2013. Learn about the latest Foreign Account Tax Compliance Act (FATCA) guidance that modifies prior guidance and offers new guidance on passthru payments and deemed compliant FFIs in a new FATCA webinar from BNA Tax & Accounting on May 3, 2011.
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This is a unique opportunity to join Michael Plowgian, Attorney-Advisor to the Office of the International Tax Counsel, U.S. Treasury Department; Carol Tello, a partner with Sutherland, Asbill and Brennan LLP; and Alan Granwell, partner with DLA Piper LLP, as they offer attendees:
- A more complete understanding of the reasons for the preliminary guidance contained in Notice 2011-34
- A summary of the operational rules contained in Notice 2011-34
- An understanding of the practical implications of the new notice and its affect on FFIs
- A better ability to advise or navigate the FATCA provisions
In 60-90 minutes, the panelists will cover:
New Preexisting Account Procedures
- Replace prior procedures in their entirety
- How the new procedures differ from the prior procedures
- Are they more administrable and less burdensome for FFIs?
- What will be the challenges in implementing the new procedures?
- How will they be applied to nonbank FFIs?
Passthru Payments
- What they are
- How to determine how much of a payment is a passthru payment
- Effect of passthru payments
Deemed Compliant FFIs
- Local banks
- Local FFI members of participating FFI groups
- Investment vehicles that meet certain requirements
- Foreign retirement plans
Reporting Procedures
- Account balances
- Gross receipts and withdrawals
New Affiliated Group Rules
- Coordinated and centralized FFI applications and compliance
"Foreign financial institutions are rightly concerned with the cost of FATCA reporting on their U.S.-owned accounts. Although not effective until 2013, U.S.-sourced payments to foreign financial institutions will be subject to 30% withholding at the source unless the recipient institution meets the FATCA requirements. Notice 2011-34 represents the IRS's latest effort to create a workable, yet effective, implementation of the reporting requirements and responds to some of the criticisms directed against Notice 2010-60. Foreign financial institutions and their advisors must familiarize themselves with the latest Notice as the FATCA deadline approaches," says BNA Tax & Accounting International Tax Managing Editor Harold Pskowski.
About the Speakers:
Michael Plowgian is an Attorney-Advisor in the Office of the International Tax Counsel at the Department of the Treasury. Previously, he was an attorney in the tax group at King & Spalding LLP, where his practice focused on a wide range of domestic and international tax planning matters.
Michael received his J.D. from Harvard Law School, a M.A.L.D. from the Fletcher School of Law and Diplomacy, and a B.A. from Denison University.
Carol Tello is a partner in Sutherland Asbill & Brennan LLP's Washington office and a member of its Tax Practice Group where she focuses primarily on international tax matters. Her practice includes a broad range of cross-border tax planning and Internal Revenue Service (IRS) controversy matters for both business entities and individuals. Much of her work has been for insurance companies in the cross-border context. She has particular experience in cross-border restructuring transactions, inbound corporate transactions, withholding matters, and treaty interpretation issues, as well as cross-border taxation of corporate executives and the U.S. taxation of non-U.S. citizens. She also advises clients on tax issues involving intellectual property transactions.
Her prior experience includes service in the IRS Office of Associate Chief Counsel (International) and as a Special Assistant to the Assistant Commissioner (International). While at the IRS, she participated in a number of income tax treaty negotiations, was the IRS National Office adviser in several Tax Court cases, and worked on various regulations and other guidance, including significant participation in developing regulations concerning the taxation of software transactions.
Carol is the author of the BNA Tax Management Portfolio 915-3 Payments Directed Outside the United States - Withholding and Reporting Provisions Under Chapters 3 and 4, as well as numerous articles on various tax issues. She also has been recognized in Euromoney's The Guide to World's Leading Tax Advisers (2011).
Alan Winston Granwell is an international tax partner resident in DLA Piper's Washington, DC office. Mr. Granwell's practice encompasses representing multinational corporations on cross-border planning, to include acquisitions, dispositions and business restructurings, IP migrations, services arrangements, repatriation planning, international insurance, international transportation, cross-border leasing, transfer pricing and the use of bilateral tax treaties. He also advises high-net-worth individuals on cross-border tax planning and structuring.
Recently, Mr. Granwell has become active in advising investors from emerging countries engaged in cross-border transactions involving the United States and Europe and in advising financial institutions and their clients on international tax enforcement initiatives. He conducts an active administrative practice, regularly representing clients before the Internal Revenue Service and the US Treasury Department.
FATCA takes place May 3, 2011, from 10:00 am – 11:30 am, ET). To register for this webinar and obtain further information about CLE and CPE credits, go to http://www.bnatax.com/fatca-guide-webinar/?open&cmpid=tmtxac2011 or (in the U.S.) call 1-800-372-1033, menu Option 6, then Option 1. The per site fee is $249.
To receive automatic, email notification of upcoming BNA webinars that may be of interest to you, go to: http://www.bna.com/emailsignup.htm
About BNA Tax & Accounting Webinars
BNA Tax & Accounting is the foremost source of tax and accounting research, news, practice tools, and guidance for tax attorneys, CPAs, corporate tax managers, estate planners, and financial accountants. Designed for today's busy practitioners, our webinars offer the same expertise and relevance that are the hallmark of all BNA Tax & Accounting resources. In just 60-90 minutes, practitioners gain in-depth knowledge on a current tax or accounting topic from experts in that area — and benefit from practical applications that can be put to work immediately. Conference attendees have the opportunity to ask the speakers questions, and may be eligible to earn CLE or CPE credits — all from the convenience of their own office or conference room.
SOURCE BNA
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