FATCA Compliance Guidance Issued for Foreign Financial Institutions | White & Case LLP International Law Firm, Global Law Practice
FATCA Compliance Guidance Issued for Foreign Financial Institutions

FATCA Compliance Guidance Issued for Foreign Financial Institutions

The IRS has issued Notice 2013-69, which provides guidance to foreign financial institutions (FFIs) entering into a FATCA compliance agreement with IRS.

The 50-page Notice also provides guidance to FFIs and their branches as reporting financial institutions under a Model 2 intergovernmental agreement (IGA) on complying with the terms of an FFI agreement, as modified by the IGA.

Notice 2013-69 goes on to describe the general responsibilities of participating FFIs and reporting Model 2 FFIs. It also describes some of the updates to the regulations and related forms IRS intends to issue.

Part four of the Notice outlines how FFIs can register for participating FFI status or reporting Model 2 FFI status.

Finally, the Notice includes a draft FFI agreement that IRS says will be finalized before the start of 2014.

The Treasury Department has officially signed nine IGAs with foreign nations, two of which--Japan and Switzerland--are based on the Model 2 template. Under the Model 2 regime, FFIs report directly to IRS on their accounts, with supplemental information exchanged between governments where accountholders have grounds to object to the direct exchange. In contrast, the Model 1 regime generally provides for government-to-government reporting of information collected from the signatories' domestic financial institutions. The Treasury Department has concluded more than a dozen other IGAs that await final signatures.

The nine IGAs currently in effect are available at:
treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA-Archive.aspx

The IRS FATCA compliance page is available at:
irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-FATCA

The following press release issued by the Treasury Department also provides additional information:
treasury.gov/press-center/press-releases/Pages/jl2194.aspx

Click here to download PDF.

 

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