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FATCA News

Posted by: Zaher Fallahi
Posted On: Dec 23, 2013

International Data Exchange/Intergovernmental FATCA XML Schema:

The IRS has finalized the format for automatically exchanging FATCA data with IGA jurisdictions.  The Intergovernmental FATCA XML Schema (version 1.1):

Is a standard format developed in close cooperation with the OECD?

Captures required information for reporting of FATCA data from both Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs)

Will be used for automatic exchange with all FATCA jurisdictions

Uses elements from existing reporting schemas used by the OECD and the European Union to reduce burden on reporting entities

Uses XML to allow for easier modifications down the road in the event of legislative or regulatory changes in reporting rules

Will facilitate safe and secure electronic data transmission using the International Data Exchange Service

The Intergovernmental FATCA XML Schema (version 1.1)

International Data Exchange Service:

The IRS is finalizing requirements for a Data Exchange service to allow for Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs) to automatically exchange FATCA data with the United States.  The Service will also allow the United States to make reciprocal exchanges where called for by an IGA that is in force.  The International Data Exchange Service:

Is based on business requirements collected by a multilateral working group

Serves as a single point of FATCA information delivery for both FIs and HCTAs

May be used for automatic exchange with all FATCA jurisdictions

Is based on readily-available mature technology

Requires both the file being sent (in the Intergovernmental FATCA XML Schema) and the transmission pathway to be encrypted, ensuring the security of tax data

Can be accessed either through a Browser-Based or a Scheduled Bulk Data Transfer environment

For assistance with any tax matters, including the IRS representation and disclosing your unreported foreign bank accounts, you may contact Zaher Fallahi, Tax Attorney, CPA, at (310) 719-1040 (Los Angeles) or (714) 546-4272 (Orange County), or e-mail to [email protected]