Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

US IRS Issues Preliminary FATCA Guidance Establishing Due Diligence Procedures and Information Reporting Rules for Foreign Financial Institutions

16 September 2010
Mayer Brown Legal Update
The HIRE Act, enacted on March 18, 2010, imposed new information reporting and withholding tax rules, which are contained in chapter 4 of the Internal Revenue Code. These rules generally impose significant new due diligence, information reporting and control burdens on non-US financial intermediaries and investment entities. The US Internal Revenue Service (the “IRS”) has published Notice 2010-60 to provide preliminary guidance regarding the implementation of those rules. The Notice provides preliminary technical guidance regarding the definition of a foreign financial institution (FFI). It also provides guidance on certain exceptions from FFI status and chapter 4 withholding generally, due diligence procedures for identifying accounts beneficially owned by US persons, information that FFIs must report to the IRS pursuant to an FFI Agreement and the scope of grandfathered obligations exempt from chapter 4 withholding. Comments are requested by November 1, 2010.


  • James R. Barry
    T +1 312 701 7169
  • Jonathan A. Sambur
    T +1 202 263 3256

The Build a Report feature requires the use of cookies to function properly.  Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently.  If you do not accept cookies, this function will not work.  For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.