IRS Delays Overseas Bank Reporting Rule Criticized by Aegon – Bloomberg

The Internal Revenue Service is giving overseas banks an additional year before they will have to make any withholdings from U.S. customers who fail to disclose enough identifying information to U.S. tax collectors.The second round of IRS guidance issued today on the Foreign Account Tax Compliance Act, or FATCA, doesn’t require banks to make 30 percent withholdings on non-compliant U.S. customers until Jan. 1, 2014. Other withholdings on gross proceeds and income that might be indirectly sourced to the U.S. won’t start until Jan. 1, 2015.

The requirements, which Congress approved last year, were originally slated to take effect at the beginning of 2013. Today’s announcement is intended to address the concerns of overseas financial institutions, including Toronto-Dominion Bank (TD) of Canada, Allianz SE (ALV) ofGermany and Aegon NV (AGN) of the Netherlands, which have said the proposal is too complex.

Read entire Bloomberg article on FATCA postponement here.

Related articles