IRS Tightens FATCA Bank Agreement Before Rollout

Law360, New York (June 24, 2014, 7:02 PM ET) — The Internal Revenue Service on Tuesday updated an agreement that foreign financial institutions will use to comply with the Foreign Account Tax Compliance Act, days before the law rolls out on July 1.

The changes in Revenue Procedure 14-38 are largely technical, ensuring the foreign financial institution agreement is consistent with regulations under chapter 3 of the Internal Revenue Code, which addresses payments of U.S. source income to non-U.S. persons, and chapter 4 of the code, which concerns taxes used to enforce reporting on foreign accounts….