The International Swaps and Derivatives Association is creating a list of five reporting requirements for parties that receive swap payments and are subject to U.S. tax laws. ISDA's tax committee is expected to finalize the requirements within the next two weeks, according to Kimberly Summe, general counsel in New York.
Summe said the tax committee began looking at creating the new reporting requirements about six months ago at the request of ISDA members who expressed a need for a check-list for tax information reporting for various swaps. The reporting requirements will be aimed at assisting firms that are subject to U.S. tax information reporting and backup withholding rules. They will also address the requirements of those counterparties that operate outside the U.S. "The reporting requirements will spell out the different standards payees will have to follow depending on their tax status," Summe said.
