FATCA : The Global Financial System Must Now Implement a New U.S. Reporting and Withholding System For Foreign Account Tax Compliance, Which Will Create Significant New Exposures — Managing this Risk (Part VI: Pass-Through Payments — Account Identification Procedures)

This article continues what has now become a comprehensive series examining the new U.S. reporting and withholding system for foreign account tax compliance. Part VI provides a new four-point analysis to determine if an FFI or USFI has a withholding tax liability for pass-through payments under Code Sec. 1471(b)(1)(D) or (3). It also addresses the first prong of this analysis regarding whether the FFI made a payment to a “ recalcitrant account holder” or “non–participating FFI,” and addresses the account identification procedures in detail