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jul

IRS delays offshore bank reporting rule without touching policy

The Internal Revenue Service is giving more time to banks based outside of the U.S. to implement a controversial tax reporting rule

The new timeline gives offshore banks until June 30, 2013, to enter into an agreement with the IRS that would shield them from some withholding requirements. Institutions won’t have to report on their efforts to track down their U.S. clients until 2014.

Banks won’t be required to make 30 percent withholdings on non-compliant U.S. customers until Jan. 1, 2014. Other withholdings on gross proceeds and income that might be indirectly sourced to the U.S. won’t start until Jan. 1, 2015.

All of the requirements were initially slated to take effect at the beginning of 2013.

source:sfgate.com