On December 13, 2018, the I.R.S. issued proposed regulations
under Code §§1471 through 1474 (F.A.T.C.A provisions) as
well as under Code §§1441 and 1461 (withholding on
non-U.S. persons and withholding agent liability for
under-withholding, respectively). The proposed regulations are the
result of an I.R.S. review of existing regulations and public
comments received in response to President Trump's executive
order requiring Federal government agencies to review existing
regulations with the goal of modifying or eliminating regulations
to reduce unnecessary burdens
This F.A.T.C.A. update will focus on the proposed regulations
under F.A.T.C.A. The proposed regulations would eliminate
F.A.T.C.A. withholding on gross proceeds, defer F.A.T.C.A.
withholding on Passthru Payments, eliminate withholding on certain
insurance premiums, and clarify the definition of an investment
entity, a subcategory of a foreign financial institution
("F.F.I."). The Preamble to proposed
