FATCA, IRS forms, FACTA Canada, FACTA in Canada, taxation Canada, IRS Canada, revenue Canada taxation, taxation in Canada, IRS FATCA, Canadian tax law, FATCA and Canada, tax law Canada, FATCA Canada news, Canadian tax laws, Canadian income tax law, Canada tax law, US-Canada, cross-border, intergovernmental agreement, tax legislation, FFI, NFFE, FFI agreement, Internal Revenue Service (IRS)
The IGAs with various foreign jurisdictions are surrogates for the default FATCA regime in the Code and the Treasury regulations, which generally make FATCA more palatable for those jurisdictions and their residents. Entities subject to FATCA under an IGA may satisfy their FATCA reporting obligations by reporting to the designated authority in their country of residence under that country’s laws, and that authority then reports to the IRS (Model 1 IGA); or the country of residence must enable such entities to report directly to the IRS (Model 2 IGA). Under the IGAs, only financial institutions are subject to FATCA’s requirements, including reporting, withholding, and due diligence, while non-financial institutions are not.