On May 5, 2014, TEI submitted comments to the Internal Revenue Service regarding temporary and proposed regulations implementing Chapter 4 of the Code, better known as the Foreign Account Tax Compliance Act (FATCA), and coordinating withholding under FATCA with withholding under Chapters 3 and 61 and section 3406.
TEI’s comments focused on the need for clear guidance regarding required due diligence for payments excepted from FATCA, the application of the exceptions to the definition of financial institution for treasury centers and holding companies, and the consequences of changing FATCA status under the regulations, among other things.
TEI’s comments were prepared under the aegis of TEI’s IRS Administrative Affairs Committee, whose Chair is Ernest Gates of Wal-Mart. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI’s comments.