The chief of the U.S. Internal Revenue Service said on Friday that a new law meant to fight offshore tax dodging by Americans will not be delayed again beyond its July 1 effective date, despite a clamor among banks asking for more time and guidance.
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It will require foreign banks, insurers and investment funds to send the IRS information about Americans' offshore accounts worth more than $50,000.
Foreign businesses that do not comply with the law can be effectively frozen out of U.S. capital markets because of a 30-percent withholding tax on U.S. source income.The article reports practitioner concerns about delays in implementing forms. There is some practitioner thought that the IRS will have to delay the effective date because the forms will not be timely available. But, note that the buzz is not about repeal of FATCA but delay of some of its components.
But given strong assurances from the Obama administration that the law will not be delayed again, "it would take something extraordinary" for the administration to waiver, he said.
A source familiar with the Obama administration's position on FATCA said the White House will not allow another delay.