NEW YORK – A new report from Thomson Reuters sheds light on the dividend and income reporting requirements for banks, brokerages, and other financial institutions under the Foreign Account Tax Compliance Act (FATCA). Published by Thomson Reuters Checkpoint, New FATCA Compliance Obligations Facing Business Entities can be downloaded at no cost at https://tax.thomsonreuters.com/FATCA-Special-Report.

The report provides a comprehensive analysis of FATCA, which was enacted in 2010 to prevent offshore tax evasion by U.S. citizens and residents. Beginning in 2015, FATCA requires foreign financial institutions (FFIs) and other financial intermediaries to file reports with the Internal Revenue Service (IRS) on the accounts of their U.S. clients with balances over $50,000. FFIs that fail to comply are subject to a 30 percent withholding tax and could be restricted from participating in U.S. capital markets.

The report was authored by Marianna G. Dyson and Michael M. Lloyd, members of Miller & Chevalier Chartered.

“FATCA is a new and unique body of law and, while its obligations appear simple, they can be quite complex and expensive to meet,” Lloyd said. “This report provides guidance to help professionals and their clients meet FATCA’s requirements and manage the related risks and costs.”

The report examines the steps FFIs must take to enter into a FATCA agreement with the IRS. It also outlines the application of FATCA’s rules for non-financial foreign entities (NFFEs) and U.S. withholding agents to ensure compliance.

To equip professionals for today’s compliance requirements, as well as plan for the evolving developments of tomorrow, Checkpoint also offers FATCA Essentials, which brings together all the expert guidance and relevant primary source materials needed to understand the new FATCA reporting rules, determine whether companies or clients are subject to FATCA compliance, and plan for and comply with the FATCA rules.

Thomson Reuters Checkpoint provides integrated research, editorial insight, productivity tools, online learning and news updates along with intelligent links to related content and software. It is relied on by thousands of tax and accounting professionals including practitioners in 97 of the Top 100 U.S. law firms, 99 of the Fortune 100 companies, and all of the top 100 U.S. CPA firms.

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