Recently, the IRS released a new draft for Publication 5190. The Draft includes information on the new encryption requirements. The IRS has recently decided to update the cipher mode for encryption. Currently, the IRS uses the Electronic Code Book. Beginning July 9, 2016, IDES will require files to be encrypted with Cipher Block Chaining. There are also two new Appendices:
- Appendix F has new tips to use during the testing period for this new type of Cipher Block encryption (June 16-30).
- Appendix G has new information and resources on assistive technology available in the IDES Gateway.
IRS has not only updated Publication 5190 (now in draft) but also the IDES Technical FAQs (questions E19-21) to reflect and provide greater detail of the encryption process. Companies will have to have this method of encryption in place for next year’s filings. We are here to help you handle the volume and complexity surrounding AEOI reporting. As new information becomes available about the requirements your organization may need to employ in order to comply with FATCA, Sovos will be here to keep you updated. Sign up to our blog to receive updates and relevant information. Or speak with one of our experts to learn how our global information reporting solution can help your business securely compile, validate, and transmit the required information to ensure compliance. IDES Updates Reporting Organizations as Substantial Owners IDES has recently created a work around solution for entering an organization as a Substantial US Owner. For this year’s reporting, the workaround is optional, but will be part of next year’s reporting. IRS Adds Three More Countries to Exchange Information The IRS recently released Rev. Proc. 2016-18. In section 3, the IRS added three more countries to whom they have determined it is appropriate to exchange information with and those three countries are: Azerbaijan, Jamaica and Slovenia.
