The IRS is reminding all Foreign Financial Institutions (FFI) participating in FATCA to check their renewal requirements before October 24, 2017. They are warning all FFIs that if they are required to renew and fail to do so, they “will be removed from the November FFI list and will be subject to a 30 percent withholding tax on certain U.S. source payments”.

This reminder is putting pressure on all FFIs to follow the agreements in FATCA. The IRS is using this pressure to make sure all the institutions follow the agreed rules to provide the IRS with information on all clients who fall under the title of a “U.S. Person”. These include…

• A Citizen of USA
• A Resident Alien of USA
• A U.S. Entity

To read the full article on the IRS newsroom website, click here.