Regulatory Analysis

Posted April 21, 2017 by Sovos
Sweden Updates FATCA Technical Guidance

Sweden has released a new version of the SKV 260 which provides a technical description of the XML file for FATCA should be formatted. The new guide applies to reports made for this year’s reporting. The format largely follows the IRS’s XML v.2.0 as outlined in the Publication 5124. However, Sweden has mandated that certain […]

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Posted April 21, 2017 by Sovos
IRS Publishes Additional FATCA Compliance FAQs

The IRS has published additional Frequently Asked Questions that address general compliance issues related to FATCA obligations. Specifically, the FAQs touch upon Foreign TIN and Date of Birth requirements. A withholding agent must obtain a foreign TIN for: • A foreign person claiming a reduced rate of withholding under an income tax treaty if […]

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Posted April 19, 2017 by Sovos
Cayman Islands Releases CRS Guidance and Extends FATCA Deadline

Recently, the Cayman Islands published its version 2.0 for CRS Guidance. The Guidance is a very important document for CRS reporting as it contains important information for due diligence and reporting requirements. In particular, Cayman will require Reporting FIs to send separate reports for each of its jurisdictions where it maintains reportable accounts. Moreover, it […]

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Posted April 17, 2017 by Sovos
Germany Releases FATCA Schema Files & Guidance

Germany’s BZSt released both FATCA schema files (XSD files are provided in the [zip file|www.bzst.de/SharedDocs/Downloads/DE/FATCA_downloads/ELANKOM_Schema_FATCAXML2.0_230317_zip.zip?__blob=publicationFile]), and guidance ([Communications Manual Part III, version 2.0|www.bzst.de/DE/Steuern_International/FATCA/Kommunikationshandbuch/Kommunikationshandbuch_FATCA_Teil_III.pdf?__blob=publicationFile]). Both provide important information on how to properly create FATCA returns. Information about the releases can be found in the latest [Infobrief|www.bzst.de/DE/Steuern_International/FATCA/Infobrief/Aktuell/Infobrief_Aktuell.pdf?__blob=publicationFile]. In addition, Germany published guidance on notifications (“[Verarbeitungsprotokolle […]

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Posted April 14, 2017 by Sovos
SSA Releases 2017 Draft Form W-2 and Form W-2c Specifications

SSA has released Draft Form W-2 and Form W-2c Specifications for TY2017 Reporting. There are a number of changes from the previous revisions of the two form specifications. Form W-2 Changes Form W-2 has a new box 12 Code FF money field, Permitted Benefits Under a Qualified Small Employer Health Reimbursement Arrangement (Code […]

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Posted April 13, 2017 by Sovos
West Virginia Has New Guidance on Business Registration

West Virginia’s State Tax Department has released a new publication TSD-100, “West Virginia Business Taxes.” The publication provides guidance to Business who need to register for business tax purposes. The six page document is merely instructive and does not function as a legal document. The last time West Virginia published a similar document was November, […]

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Posted April 12, 2017 by Sovos
IRS Releases Updated Publication 1281, Backup Withholding For Missing and Incorrect Name/TIN(S)

The IRS has released an updated version of Publication 1281, Backup Withholding For Missing and Incorrect Name/TIN(S). There are a couple of changes from the previous revision: • Form 1099-G payments made under IRC 6041 and 3406(b)(3)(A), which include taxable grants and agricultural payments, are now subject to backup withholding o New code for […]

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Posted April 5, 2017 by Sovos
Singapore Releases Nil Return Form

Singapore’s Inland Revenue Authority has released a paper form that Reporting Financial Institutions may use to file a nil report. Nil reports are required whenever an FI does not have any U.S. Reportable Accounts. A Singaporean FI may elect to file an electronic nil through the IDES Gateway, as it would a typical FATCA return. […]

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Posted April 5, 2017 by Sovos
Singapore Amends CRS Regulations

New regulations came into effect this week for CRS in Singapore. The Minister for Finance has published Amendments the last year’s Regulations. Many of the Amendments concern due diligence procedures, including the self-certification process. Singapore is a late adopter. Financial Institutions are required to complete the due diligence procedures this year, and then report in […]

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Posted April 5, 2017 by Sovos
Iceland Publishes New FATCA Schema Information and Enacts FATCA/CRS Resolution

The Icelandic Directorate of Internal Revenue has released information about its domestic schema to be used for both FATCA and CRS reporting. There is a new section in the schema, <FatcaCrs í framtalsgögnum> (FATCA CRS tax return data), which is meant to allow for either FATCA or CRS data to be reported. Additionally, there is […]

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Posted April 4, 2017 by Sovos
Arizona Releases Updated A1-QRT: Quarterly Withholding Tax Return

Arizona has released its 2017 Quarterly Withholding Tax Return, the A1-QRT. This form is the quarterly reconciliation and reporting form used for withholding payments made over the course of a quarter. The form has undergone extensive formatting changes, but relatively few material changes. The form now requests more detail related to business closures and […]

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Posted April 4, 2017 by Sovos
Maine Publishes Updated Instructions for “Employers Return of Maine Income Tax Withholding”

Maine recently published updated instructions for Form 941-ME, the “Employer’s Return of Maine Income Tax Withholding.” Generally, Form 941-ME is used to report employee or payee income tax withholding to the Maine Revenue Service. The 2017 version of these instructions include a few changes, mostly related to amended returns. • Amended Returns: This section was […]

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Posted April 4, 2017 by Sovos
North Dakota Publishes Updated Guideline to “Income Tax Withholding: Oil and Gas Royalty Payments”

North Dakota recently released an updated version of Publication 28262 – “Guideline to Income Tax Withholding: Oil and gas Royalty Payments.” The Guideline provides withholding criteria regarding oil and gas related royalty payments. There is one change from the previous version of this publication involving remittance of 1099-MISC forms under the Combined Federal/State Program […]

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Posted April 3, 2017 by Sovos
Australia Updates FATCA and CRS Pages, Adds FATCA Reporting Explanation

The Australian Taxation Office has made some revisions to the ATO FATCA and CRS websites. Additionally, the ATO has created a new FATCA Reporting page that provides essential information regarding the transmittal of FATCA returns. The reporting page confirms that Australia will continue to use the IRS XML Schema, and permit but not require […]

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Posted April 3, 2017 by Sovos
OECD Releases Second Edition of CRS Guidance

The OECD has recently put out a new edition of the Standard for Automatic Exchange of Financial Account Information. This text is sometimes referred to as the “purple book.” The OECD explains that the update was made to give more clarity to the process of submitting corrected returns. In that vein, the OECD updated the […]

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Posted April 3, 2017 by Sovos
Luxembourg Releases Reportable Jurisdictions

Luxembourg has published their list of Reportable Jurisdictions in the Journal Officiel. The list is a requirement from the Common Reporting Standard, and should be use by Reporting Financial Institutions if they have Reportable Accounts. It’s Luxembourg’s first publication of such a list. Otherwise, an FI may submit a Nil but it is not required […]

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Posted April 3, 2017 by Sovos
British Virgin Islands Extends CRS Deadlines and Reminds Financial Institutions of Reporting Obligations

The BVI International Tax Authority has relaxed the statutory deadlines for both UK CDOT and CRS – extending them to June 30, 2017 for enrollment and to July 31, 2017 for submissions. The ITA will inform BVI FIs directly once the portal is open to accept UK and CRS enrollments and filings. In addition, UK […]

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Posted March 29, 2017 by Sovos
“Brexit” Officially Invoked

The United Kingdom took the long-anticipated first formal step towards officially leaving the European Union when on March 29, the UK Envoy to the EU hand delivered the “Article 50 Letter” to the EU Council President. As of today, the clock begins ticking on a 2 year window in which the UK can negotiate its […]

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