Black & LoBello will be hosting a seminar about FATCA regulations Friday, May 4th at 2:00 PM. FATCA regulations primarily deal with “foreign financial institutions” (FFI) and what they must do to be IRS compliant. However, the proposed regulations impact US advisors and intermediaries in many ways. The proposed regulations mandate a 30% withholding from any US source payment made to a non-compliant FFI (and many other types of entities). Any time a US payor or trustee makes a payment to a non-US beneficiary or non-US entity, compliance with the FATCA rules should be considered.
In many cases, US trusts with foreign beneficiaries or with foreign grantors, and trust companies, will be treated as FFIs. One can anticipate that advisors will be shocked in the first quarter of 2013 when the compliance rules are scheduled to take effect and when a trust, trust company or beneficiary receives a payment from a US source investment that was subjected to 30% withholding because the trust or trust company was considered an FFI even though it may have been domiciled in the US. In some cases, there is no ability of an FFI to seek a refund for the withholding.
Aaron Schumacher and Jeffery Morse will be leading this seminar. Mr. Schumacher has headed up the FATCA group at Withers Worldwide for some time and is quite knowledgeable on the subject. Please RSVP at https://blackwadhams.law/contact/ and be sure to include “FATCA Seminar” as your Area of Legal Interest.