IIAC RESPONDS TO U.S. INTERNAL REVENUE SERVICE (IRS) PROPOSED REGULATIONS AMENDING RULES FOR FILING ELECTRONICALLY
The IIAC issued a response to the IRS proposed rules for Electronic-Filing Requirements for Specified Returns and Other Documents. These rules impact IIAC members that act as qualified intermediaries, or otherwise have U.S. obligations to report, withhold, and remit to the IRS .
The IIAC supports expanding e-filing, however, we noted that proposed new rules to access the Filing Information Returns Electronically (FIRE) system will make it very difficult for Canadian firms to comply.
Canadian firms would need to procure an IRS Secure Access Account which requires identity authentication through Social Security numbers, U.S. taxpayer identification numbers, and U.S.-based telephone numbers and addresses that many Canadian firms and individuals do not have.
The IIAC is seeking accommodations from the IRS that will address security concerns and provide non-U.S. filers access to the system. IIAC Director, Adrian Walrath, testified at an IRS public hearing on September 22.
For more information, please contact Adrian Walrath.