The US Internal Revenue Service (IRS) has been urged by the Information Reporting Program Advisory Committee (IRPAC) to delay the implementation date for the Foreign Account Tax Compliance Act (FATCA) by another six months, to January 1, 2015.
IRPAC argues that the delay will help withholding agents and their customers adjust to the new requirements, according to tax-news.com.
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IRPAC confirmed that withholding agents have already devoted substantial resources to the design of systems based on the draft final regulations and the associated draft forms.
The US regulators have already delayed the implementation of the controversial Foreign Account Tax Compliance Act (FATCA) twice, pushing it back by 18 months.
Under FATCA, banks will have to identify and report directly to the IRS information about financial accounts, held by US taxpayers with accounts of more than US$50,000.
The FATCA agreement requires foreign financial institutions to disclose information to the Inland Revenue Service (IRS), on all accounts held by US taxpayers, otherwise they will be subjected to a 30% withholding tax.
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