The US IRS on October 27 released new questions and answers on the FATCA International Data Exchange Services (IDES) system on its website and listed approved certificate authorities.
The new Q&As are as follows:
Q: What is the International Data Exchange Services (IDES) system?
A: System that allows IRS to exchange tax payer information with foreign tax authorities (e.g., HCTA and/or FFI). An overview of data transmission to the IDES system is currently available on the IRS website at FATCA International Data Exchange Resources and Support Information (IDES).
Q: What is the frequency of IRS request for information on recalcitrant accounts?
A : The transmission can occur on the ad-hoc basis as HCTA receives the information from FFIs, or the HCTA can provide a single submission at or before the submission date and time as specified in the IGA. This applies to all jurisdictions.
Q: What types of technical support will be present during integration testing? How will the HCTAs and FFIs report issues with integration testing back to the IRS?
A: The IDES vendor will provide help desk support under their contract with the IRS during testing as well as when the system goes live. The IRS will provide contact information for the vendor help desk prior to the testing period.
Q: What is the protocol for HCTAs to contact the IRS with technical issues or questions regarding IDES?
A: The IDES vendor will be responsible for resolving technical issues or questions regarding IDES. The IRS will provide contact information for the vendor help desk.
Q: What is the protocol for HCTAs to contact the IRS with issues or questions regarding reporting requirements?
A: The HCTA should direct questions regarding reporting requirements to the United States Competent Authority.
Q: When can I enroll to use IDES?
A: The IRS will notify all participants when they can begin enrolling in IDES via the IRS web page at Foreign Account Tax Compliance Act. For HCTAs, the IRS will issue a letter to the Competent Authority to let it know when it is time to begin the process. For Financial Institutions, enrollment will occur online; in order to enroll, the FFI will need to have registered as a Participating FI through the IRS FATCA Registration Portal and have a GIIN that appears on the IRS Participating FI list. The IRS will notify participants in advance of the web address to be used for enrollment.
The FATCA website was also updated on October 27 to state that the IDES will recognize and accept digital certificates issued by the following approved certificate authorities:
• DigiCert
• Entrust
• Identrust
• Symantec/Verisign
See, FATCA Q&A, FATCA website.
