Update - US withholding tax – 14 February 2014

LBIE and its withholding agent continue to work with the IRS in discussions regarding the character, source and treatment of distributions for US federal income tax purposes, however we have not yet received guidance on the treatment of distributions up to 100% of a customer's Best Claim.

Once guidance has been received, LBIE will provide an update for all beneficiaries and will also request a release of excess funds on deposit with the IRS. LBIE can then distribute some or all of the tax reserves that may have been applied to their first distribution.

For 1099 reporting purposes LBIE’s withholding agent has requested an extension with the IRS of 4 weeks and this has been granted by the IRS.

LBIE will provide a further update during March.