The IRS today released an advance version of proposed regulations (REG-132881-17) that are intended to simplify FATCA reporting and to reduce taxpayer burden.
Specifically, the proposed regulations are being issued for purposes of:
The proposed regulations [PDF 307 KB] were released for publication in the Federal Register in the afternoon of December 13, 2018, and with that action, are scheduled to appear in the Federal Register on December 18, 2018. Comments and requests for a public hearing are due by a date that is 60 days after December 18, 2018.
The purpose of this edition of TaxNewsFlash is to provide text of the proposed regulations. Initial impressions on these proposed regulations will be provided in a future edition of TaxNewsFlash.
Taxpayers may rely on the proposed regulations until final regulations are issued—except taxpayers may apply the modifications in the proposed regulations for all open tax years until final regulations are issued with respect to (1) the elimination of withholding on non-cash value insurance premiums, (2) the clarification of the definition of a “managed by” investment entity, and (3) the revised allowance for a permanent residence address subject to a hold mail instruction.
The preamble continues to explain that concerning the revisions included in the proposed regulations that relate to credits and refunds of withheld tax, taxpayers may not rely on these proposed regulations until Form 1042 and Form 1042-S are updated for the 2019 calendar year.
The preamble to the proposed regulations explains that this release takes into account the burden-reducing policies described in Executive Orders 13777 and 13789 and the comments received. These regulations propose amendments to the regulations under chapters 3 and 4, including certain refund-related issues for which comments were received. The IRS and Treasury stated that they “continue to study other public comments.”
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.