Draft GIIN Registration Form
The IRS has released a draft FATCA registration form, Form 8957 “Foreign Account Tax Compliance Act (FATCA) Registration” (PDF, 147KB) for review and comment (not for current use) to register for a Global Intermediary Identification Number (“GIIN”). The IRS anticipates that a final paper registration form will be made available in July 2013, but would prefer Financial Institutions to register online via the IRS portal once it goes live in July 2013. While the online registration process will look different than the paper registration form, the questions will be very similar. Regulations in support of the implementation of Ireland’s IGA are due to be published in the coming months and will clarify the position regarding Irish FATCA registration and its interaction with the US GIIN.
Draft FATCA Withholding Tax Form
The IRS has also released draft Form 1042-S, “Foreign Person’s US Source Income Subject to Withholding” (PDF 324KB), however draft instructions have not yet been released. This form is used to report withholdings on US source income, and was revised to incorporate FATCA withholdings. Several changes were made to the form, including an additional check-box to indicate whether Chapter 4 (FATCA) withholding tax applies, a Chapter 4 Status Code, and the Withholding Agent and Intermediary or Flow-Through Entity’s GIIN.
Expanding FATCA Type Reporting Initiatives
In a sign of the ever expanding scope of FATCA type reporting, a multilateral action was announced between France, Germany, Italy, Spain and the UK to combat tax evasion by developing and piloting FATCA style information reporting and exchange between the five states. The pilot will use the Model I Intergovernmental Agreement as a basis to help minimize costs for both businesses and governments. A joint letter was issued to the European Commission setting out the terms of the agreement and inviting other EU Member States to join in the pilot information reporting program.