IRS Provides Transitional Relief Under FATCA

May 15, 2014

On May 2, the IRS announced that 2014 and 2015 will be transition years for IRS enforcement and administration related to FATCA. This transition period also applies to certain due diligence and withholding provisions released earlier this year. The July 1, 2014, FATCA effective date remains in place. The relief from IRS enforcement means that the IRS will take into account the extent to which withholding agents, foreign financial institutions and other entities are making a good faith effort to comply with FATCA until calendar year 2016. For additional information, please refer to Notice 2014-33 [PDF].