I am posting this information highlighted in comments by Edelweiss and Innocente.
@Edelweiss: Excellent news. Each delay is another nail in the FATCA coffin. Bloomberg, AP and other news wires need to pick up this story.
Bank groups seek more delay in offshore anti-tax evasion law
The actual request letter: Request for Additional Extension of The FATCA Phased Timeline
Reuters says that four bank lobbying groups (the American Bankers Association, the Clearing House Association, the Institute of International Bankers, and the Securities Industry and Financial Markets Association) have asked for a six month delay to the implementation of FATCA. The letter is located here. The primary driver appears to be the fact that the final regulations and forms aren’t available. They are assuming these are available by 31 Dec 2013 which would give the industry just 6 months to finalise implementation when they had stated that 18-24 months were needed. A six month delay would give them 12 months instead of the 18-24.
Here are some key lines from the letter:
“Nevertheless, all Final Guidance has not yet been issued, and there has been limited progress in the signing of IGAs.”
“Under the current timeline, there is less than 8 full months between now and July 1, 2014, the first scheduled FATCA implementation date. The Associations respectfully submit that this is insufficient time to achieve the effective, full implementation of FATCA.”
“For the reasons described herein, the Associations believe that it would be appropriate to extend further certain milestone dates in order to help ensure a smooth transition to the FATCA regime and minimize the prospects of over withholding as well as the potential for significant disruption to financial markets.”
On the Supreme Court future action is back up position that Canada can not hand over information on Canadian assets. The US government control the US currency and it would be harder for the lawyer to defend Canadian sovereignty on that issue.
A very interesting post @George III. I have just glimpsed it but will read it again later.
A repost from another comment on my DATCA timeline thread…
ACFCS is out with their characterizations (spin) building off this Reuters story of the 4 banking groups
Major US bankers’ groups place obstacle to FATCA implementation the way the US IRS planned
Another call for delay…
The Information Reporting Program Advisory Committee (IRPAC)* has recommended that the IRS continue to take into account the time needed by withholding agents and their customers to implement FATCA in an orderly manner. Notice 2013-43 provided for a postponement in the imposition of FATCA withholding until July 1, 2014. IRPAC recommends that the IRS provide for an additional postponement until January 1, 2015, in order for withholding agents to complete the steps necessary to fulfill their obligations under FATCA.
Will #FATCA Ever Go Into Effect? Hope not. via @Forbes http://onforb.es/1h3tIf7 World is wasting a ton of money for a VERY BAD Democrat idea
Adding Mark Twains comments about delay from the Ask your FATCA Question thread..
Submitted on 2013/12/12 at 6:34 am
The Associations requested the following modifications to the Phased FATCA Timeline:
• Timeline for Withholding — an additional six-month extension for withholding that is scheduled to take place beginning on July 1, 2014. In addition, the definition of a grandfathered obligation (including associated collateral) should be extended to obligations outstanding as of January 1, 2015.
• Expiring Withholding Documentation — an additional six-month extension for withholding documentation set to expire on June 30, 2014 pursuant to Notice 2013-43, so that such documentation would expire on December 31, 2014.
• Due Date for Reporting — FATCA reporting for 2014 (via Form 8966) should apply only to accounts designated by a participating FFI as held by a U.S. citizen or resident on December 31, 2014, and identifiable via electronic search. Also, that reporting for calendar year 2014 be delayed one year so that reporting for calendar years 2014 and 2015 would be provided by March 31, 2016. All other FATCA-related reporting requirements should be postponed to be effective for payments made beginning in calendar year 2015.
• Date of New Account Opening Procedures — a six-month extension to January 1, 2015 to implement new account opening procedures. However, firms should have the authority under guidance to be issued to implement new account on-boarding procedures before that date (removing those accounts from the preexisting account remediation pool).
• Obligations on Preexisting Accounts — due diligence for prima facie FFI should be required by July 1, 2015.