IRS Releases New Draft Publication 5190 for FATCA Encryption Requirements

Sovos
April 6, 2016

This blog was last updated on June 27, 2021

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.

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Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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