A Global Tax Law Firm

Recent Treasury Notice Regarding 'Transition Period' Not a Delay of FATCA Implementation

The U.S. Department of the Treasury recently announced that the current and next calendar years will be a "transition period" for complying with the Foreign Account Tax Compliance Act's requirements. The creation of this transition period should not be seen as a postponement of FATCA's obligations, but rather as a time when affected entities can seek to implement policies that bring them into full compliance. Thinking that the new announcement has delayed the requirements imposed by the FATCA is erroneous and dangerous.

In early May, the US Treasury Department issued Notice 2014-33. That notice announced publicly that the years 2014 and 2015 would serve as "a transition period" for purposes of the Internal Revenue Service's enforcement of the implementation of FATCA. With the deadline for FATCA compliance looming, the Treasury Department saw the benefit of a transition period to facilitate an orderly adjustment to the new rules. The transition period applies to FATCA's withholding, reporting, and due diligence requirements.

While some might read that description of "transition period" and see a postponement of the extensive duties triggered by FATCA, this perspective is mistaken. The Treasury notice is not a delay, but rather fosters an opportunity for obligated entities to ramp up to full compliance over time. The new transition period does not give obligated entities the option to sit on the sidelines until 2016, however. The notice requires entities to make reasonable efforts to come into compliance this year. Entities not making such good-faith efforts can face IRS enforcement as early as this year.

No Comments

Leave a comment
Comment Information
  1. AVVO Client Choice
  2. AVVO Avvo Rating
  3. AV Preeminent
  4. BBB | Accredited Business BBB Rating: A+
  5. Rated by Super Lawyers | Christin M. Bucci | SuperLawyers.com
  6. ABA
  7. Florida institute of certified public accountants | CPA
  8. The Florida Bar | 1950
  9. Seal of the Supreme Court of the United States of America
  10. United States Tax Court
  11. The Ohio Society of CPAS | CPA
  12. AICP
  13. Avvo | Clients Choice  Award 2012 | Christin Marie Bucci | Five Stars
  14. Reviews | Five Stars | out of 16 reviews | Christin Marie Bucci | Avvo
  15. Avvo Rating 10.0 | Christin Marie Bucci | Top Attorney
Bucci Law Offices

Fort Lauderdale Office
2600 North Andrews Avenue
Fort Lauderdale, FL 33311

Toll Free: 800-743-4263
Phone: 954-900-9107
Fax: 954-764-4401
Fort Lauderdale Law Office Map

Miami Beach Office
1130 Washington Avenue
3rd Floor, Suite B
Miami Beach, FL 33139

Toll Free: 800-743-4263
Phone: 305-340-2275
Miami Beach Law Office Map

Email Us For A Response

Get Help With Your Tax Matter

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy