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Lesson 3: Why is this relevant now?

Now let’s discuss why information reporting and withholding are relevant. There is an increased focus on identifying noncompliance, with efforts such as software validation for 1042-S reporting and penalties for FATCA noncompliance. The Automatic Exchange of Information (AEoI) also requires global TIN collection. Additionally, upcoming guidance will address the implications of digital assets and crypto accounts. With heightened government efforts, taxpayers face increased risks, including additional reviews, penalties, and enforcement by tax authorities worldwide. It is crucial to manage reporting procedures effectively.