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March 16, 2021

IRS updates FATCA FAQs to extend penalty relief for 2020 and 2021 withholding and reporting

The IRS has updated its frequently asked questions (FAQs) for the Foreign Account Tax Compliance Act (FATCA). Specifically, updated FAQ 23 under General Compliance extends penalty relief for the 2020 and 2021 calendar years for withholding agents that withhold and report on Form 1042 and 1042-S by September 15, 2021 (for 2020) or September 15, 2022 (for 2021) a dividend-equivalent payment made with respect to a derivative referencing a partnership.