Once again, the IRS has pushed back FATCA effective dates due to further delays in the process of finalizing FATCA materials.

Under Notice 2013-43, released July 12, 2013, several key effective dates have been deferred another six months, to July 1, 2014.  That date is now:

• the first date on which FATCA withholding will apply to US-source payments;

• the cut-off date for grandfathering of existing obligations; and

• the date by which withholding agents generally will be required to implement new FATCA-compliant account opening procedures.

The process of foreign financial institutions registering with, and reporting to, the IRS as participating foreign financial institutions (PFFIs) has also been deferred:

• The online registration mechanism that was to have been in place by the beginning of this month is now expected to become available in mid-August, and online registrations will not actually become effective before January 1, 2014.

• The first reports that PFFIs will be required to begin filing in 2015 with respect to their U.S. accounts will be required to cover just the 2014 calendar year (rather than including the 2013 calendar year, as had previously been the case).

The notice also touches on procedures relating to the intergovernmental agreements (IGAs) that the US is still in the process of negotiating with a number of foreign countries.  These IGAs will be designed to facilitate FFIs’ compliance with FATCA through reporting of US accounts to the tax authorities in their home countries rather than having to register with the IRS as PFFIs.