IRS Postpones FATCA Implementation

Summary: The United States Internal Revenue Service recently issued Notice 2013-43 postponing the implementation of certain provisions of the Foreign Account Tax Compliance Act (FATCA). FATCA is designed to police offshore investments, accounts and trust interests held by certain US persons. The final FATCA regulations, issued in January 2013, set forth a timeline for phasing in FATCA beginning that year. The notice’s postponement of certain of these deadlines provides entities subject to the rules with additional time to become FATCA-compliant and delays the dates on which such entities would, if non-compliant, become subject to withholding tax on certain US-source payments.