July 14, 2011 - Phil Hodgen

FATCA deadline extended for a year

The FATCA rules, due to be effective in 2013, have been put on hold for a year.  The IRS Commissioner said in a press release that this was done because the IRS wants to be nice to foreign banks which have serious problems in implementing the rules:

“Today’s notice is a reflection of our serious commitment to implementation of the statute, but also a serious commitment to listen to the implementation challenges of affected foreign financial institutions.”

Read Notice 2011-53. (PDF)

FATCA is complicated. It will impose massive costs on foreign financial institutions, even those that choose to have no U.S. customers. It will make U.S. citizen abroad into pariahs. Methinks the Commission needs the extra year because his sales and marketing efforts are not exactly hitting paydirt.

Read more here at el Bloomberg.