SIFMA issued the following statement from president and CEO Kenneth E. Bentsen, Jr. regarding announcements from the Treasury Department and the IRS today on the extension of the phase-in period for the enforcement and administration of Section 871(m) and the extension of the transition period for qualified derivative payment (QDP) reporting requirements related to section 59A and Section 6038A:
“We appreciate the IRS and Treasury’s decisions today recognizing the need for more time for our industry to adequately comply with new policies around Section 871(m) and QDP reporting requirements. As we noted in our comment letter on Section 871(m), given regulators are still contemplating changes, in order to analyze any updated guidance or new requirements, update complex systems, secure budgets, and implement our operational processes to comply, parties will need a significant amount of lead time after final guidance is issued. Similarly, the extension of the transition period for QDP will allow Treasury to continue to actively and appropriately consider changes to QDP reporting requirements. We look forward to working with the government as they refine and finalize these policies.”
