On May 2, 2014, the IRS released Notice 2014-33 providing for a transition period for purposes of IRS FATCA enforcement and administration, as well as notice of IRS and Treasury intent to amend the Chapter 4 regulations to allow a withholding agent to treat certain accounts opened by a foreign entity on or after July 1, 2014, through Dec. 31, 2014, as a pre-existing account. This effectively delays the imposition of withholding on the majority of accounts until July 1, 2016.
While this notice was intended to accommodate those in the industry grappling with system changes, it actually caused more-prepared companies, such as Computershare, to have to throttle back their efforts and change coding that was virtually ready to be put into production.
Computershare remains on track for full and timely compliance with FATCA regulations according to current IRS timelines. A detailed review of FATCA and Computershare’s compliance effort is available from your account team.