FATCA registration deadline extended

GPs now have an extra ten days to register with the IRS.

US Treasury is now giving foreign fund advisors until May 5, 2014 to register as a foreign financial institution under the Foreign Accounts Tax Compliance Act (FATCA).
Prior to the extension fund advisors covered by the law needed to register, via an Internal Revenue Service (IRS) portal, by April 25.

The news will come as relief to many firms. Research from software provider SEI found that about half of GPs weren’t even aware of the original April deadline.

The new May deadline will be important for certain non-US firms to meet, notably those who receive income from the US. Being registered by the deadline puts an advisor on the first monthly list of FATCA-compliant entities, which the IRS plans to publish on June 2. For some firms, making that first list – which will be used by banks, custodians and other types of withholding agents to verify FATCA compliance – may be important in order to avoid withholding tax.

The Treasury and IRS also agreed to treat 20 countries which have reached FATCA agreements “in substance” but not formally signed as completed for FATCA purposes, as PE Manager previously reported.