cross posted from the ADCSovereignty Blog
FATCA Update: Treasury Relaxes September 30 Deadline for Model 1 IGA Jurisdictions to Exchange Ta… http://t.co/wocIyAGoPr via @BlankRomeLLP
— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) September 19, 2015
Well, it’s been quite a week. At approximately 4:45 p.m. today the IRS issued a notice confirming that the FATCA implementation date will be extended to September 30, 2016. As you know Canada has a Model 1 IGA. Assuming the correctness of the post in the above tweet:
Model 1 IGA Jurisdictions for Which the Obligation to Exchange Is In Effect
For those Model 1 IGA jurisdictions where the obligation to exchange is in effect now, Notice 2015-66 provides that FFIs in that country will be treated as FATCA compliant, and not subject to withholding, so long as the partner jurisdiction notifies the U.S. before September 30 that it requires more time, and “provides assurance that the jurisdiction is making good faith efforts to exchange the information as soon as possible.” Notice 2015-66 does not, however, change the deadline for FFIs to report information to their local tax authority, which remains governed by law of that country.
We have instructed our legal counsel to notify the Government of Canada (and they have) of this development and request that the Government of Canada NOT disclose your banking information to the IRS.
It’s been quite a week. We will keep you posted.
3 thoughts on “IRS extends FATCA Compliance Date for one year to September 30, 2016”
As I am new to this whole thing and am reading as much as possible, can anyone tell me if it is mandatory to give a reason(s) why you have decided to renounce your US citizenship? Can you give NO reason and complete the process without significant problems. Do they force you come up with a reason? Will they not process your request to renunciate without a reason or justification. I do not want to make any mistakes when I go through the process. Please comment as I haven’t been able to come up with factual or reliable information around this question.
I renounced in December, 2014 and received my CLN several months later. At the consulate I was asked, “Would you like to elaborate on why you are renouncing?” My reply was, “Well not really. I live here now (in Canada).” That was the end of the issue, so I don’t believe that you need to give a reason. I hope others will respond to this as I don’t think there is any reason asked for in the renunciation forms.
Best wishes with your renunciation. It’s your ticket to freedom DR.
I posted a reply to you, but the comment wouldn’t show up here. So, I posted it on a different thread — “Renunciation and Relinquishment” thread — and it shows up there.http://maplesandbox.ca/2012/renunciation-and-relinquishment-what-are-the-differences-is-there-a-difference/