PwC Counsels Careful FATCA Documentation For Payors of U.S. Insurance Premiums

Payors of U.S. insurance premiums to non-U.S. carriers must collect the right documentation to minimize or eliminate withholding and reporting under the Foreign Account Tax Compliance Act, PricewaterhouseCoopers LLP said in a new tax insight memorandum.

The Internal Revenue Service has said payors won’t be required to do FATCA reporting if they can show the premiums are already subject to the federal excise tax and FATCA withholding is not applied, Candace Ewell, a principal in PwC’s Tax Controversy and Regulatory Services, told Bloomberg BNA Sept. 26.

Ewell, one of the authors of the Sept. 25 memorandum, said documentation is critical ...