On February 27, 2019, LB&I issued a memorandum (LB&I-04-02019-002) outlining a new program administred by the Foreign Payments Practice (“FPP”) that allows withholding agents to report and correct failures under Chapter 3 or 4.  The program and its procedures arose based upon the frequency with which taxpayers contact FPP regarding potential corrections for Chapter 3 and 4 withholding compliance failures.  The program establishes FPP as the central point of contact for withholding agents wishing to submit delinquent withholding tax returns, remit unpaid taxes, and seek request penalty relief.  The program is available to withholding agents other than those that are qualified intermediaries, withholding foreign partnerships, and withholding foreign trusts, but withholding agents may not participate in the program if they are currently under IRS audit for the delinquent filings, or if they are before IRS Appeals or in litigation related to issues involving noncompliance with Chapters 3 or 4 of the Code.  Although multiple years may be included in a single submission, withholding agents may only avail themselves of the program one time.

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