Tag Archive for Notice 2023-11

Is FATCA Aimed At Resident Americans, Residents Of Other Countries, Or Both? (Part 3 – Notice 2023-11)

Is FATCA Aimed At Resident Americans, Residents Of Other Countries, Or Both? (Part 3 - Notice 2023-11)

Summary – The Reader’s Digest Version …

Although FATCA was clearly motivated by the behaviour of US citizens resident in the United States, Treasury did NOT interpret the “purpose” as being limited to prevent abuses by “residents of the United States”. Rather Treasury appears to have interpreted the purpose of FATCA (very broadly) to target residents of other countries.

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Non-U.S. Banks May Be Forced To Sever Ties With US Citizen Clients Because Of FATCA (Part 2 – Notice 2023-11)

Non-U.S. Banks May Be Forced To Sever Ties With US Citizen Clients Because Of FATCA (Part 2 – Notice 2023-11)

Introduction – The Readers’ Digest Version

This is Part 2 of a series of posts discussing the world of FATCA and how IRS Notice 2023-11 is likely to impact it. (Part 1 is referenced in the above tweet.) In Part 1 I described how Notice 2023-11 imposes significant additional obligations on both non-US banks and the IGA Model 1 governments. (This post will be best understood by first reading Part 1 and understanding the additional compliance burdens imposed on non-US banks as a result of Notice 2023-11.) The purpose of this post (Part 2) is to suggest that the overall context of FATCA, the FATCA IGAs and US citizenship taxation will incentivize non-US banks to purge US citizen clients. It is reasonable to conclude, that US citizen clients are a clear and present danger to their businesses.

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The Carrot, The Stick And Heightened FATCA Enforcement On Overseas Americans (Part 1 – Notice 2023-11)

The Carrot, The Stick And Heightened FATCA Enforcement On Overseas Americans (Part 1 - Notice 2023-11)

Welcome To 2023 – A Year Of Heightened FATCA Enforcement

On December 30, 2022 US Treasury released Notice 2023-11. The broad purpose of the Notice is to prescribe conditions that would allow non-US banks to temporarily avoid a designation of “significant non-compliance” under the FATCA IGAs. It is important to note that Notice 2023-11 is NOT simply a “stay of execution”. It is a “stay of execution” that is conditional on both non-US banks and their governments participating in a significant escalation of FATCA enforcement on US citizens who live outside the United States.

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