The Internal Revenue Service issued a proposal intended to reduce the regulatory burden with respect to the Foreign Account Tax Compliance Act and other reporting requirements. The proposal would eliminate withholding requirements on gross proceeds paid to certain foreign entities from the sales or other dispositions of property that could produce interest or dividends from sources within the U.S. It also includes a delay on pass-through payment withholding requirements; relief from treaty statement documentation; and rules related to refunds and credits of amounts withheld.
Comments on the proposal are due 60 days after publication in the Federal Register.
