FATCA Registration Portal Open - Guidance Issued
On 19 August 2013, the IRS unveiled its new Registration Portal, FATCA Registration Resources and Support Information, providing information relating to the FATCA registration process. The FATCA Registration Portal is a web-based system that Financial Institutions (FIs) may use to register their FATCA classification completely online.
According to the IRS, FATCA registration can be accomplished most efficiently and effectively through the online registration process that will avoid the need to print, complete, and mail paper forms. The electronic registration Website presents a short set of questions about the registering FI, its branches, and, where applicable, Expanded Affiliated Group (EAG) members.
The IRS FATCA registration website, designed for secure account management, is a web-based application that contains the following features:
- Allows 24-hour-a-day, seven-days-a-week accessibility
- Allows FI users to establish an online account, including the ability to establish an access code and challenge questions
- Ensures security for all data provided on behalf of FIs
- Establishes a streamlined environment for FIs to register in one place
- Provides FIs with tools to oversee member and/or branch information
- Displays a customized home page for FIs to manage their accounts
The FATCA registration Website also contains features that provide online communications and a means for delegation of authority for purposes of registration through the Website. This enables FIs the flexibility to manage information for members and branches. Specifically, the electronic registration system:
- Allows FIs to appoint Points of Contact to perform registration tasks
- Generates automatic notifications when a FI status changes
- Issues the Global Intermediary Identification Number (GIIN)
The IRS will also accept registrations that are made on paper forms. Paper forms cannot be filed before 1 January 2014. Paper registration forms will experience slower processing times than online registration, and registrants will not receive a GIIN needed to demonstrate FATCA compliance until processing of their paper form is completed.
About the GIIN
In connection with its FATCA Registration, an FI (other than a Limited FFI or Limited Branch) or a U.S. Financial Institution (USFI) acting as a Lead FI or Sponsoring Entity will be issued a Global Intermediary Identification Number (GIIN).
- The GIIN may be used by an FI to identify itself to withholding agents and to tax administrators for FATCA reporting.
- A separate GIIN will be issued to the FI to identify each jurisdiction the FI maintains a branch that is participating or registered deemed-compliant.
- The registered entity will be identified on the IRS FFI List that will be posted electronically by 2 June 2014
Significant Dates in Registration Process
- From today until 31 December 2013, an FI will be able to access its online account to modify or add registration information.
- Prior to 1 January 2014, any information entered into the system, even if submitted as final by the user, will not be regarded as a final submission, but will merely be stored until the information is submitted as final on or after 1 January 2014.
- FIs can use the remainder of 2013 to become familiar with the FATCA registration Website, to input preliminary information, and to refine that information. On or after 1 January 2014, each FI will be expected to finalize its registration information by logging into its online account on the FATCA registration Website, making any necessary additional changes, and submitting the information as final.
- As registrations are finalized and approved in 2014, registering FIs will receive a notice of registration acceptance and will be issued a GIIN.
- The IRS will electronically post the first IRS FFI List by 2 June 2014, and will update the list on a monthly basis thereafter.
- To ensure inclusion in the June 2014 IRS FFI List, an FI will need to finalize its registration by 25 April 2014.
Materials available from the IRS web page to assist FIs with FATCA registration are:
For Your Reference
Click the following link to access the IRS Registration Portal,
FATCA Report - Form 8966 Released in Draft
The IRS has released a draft of the new Form 8966, FATCA Report, for review and comment. The draft is dated 13 August 2013, and is intended to be first used to report U.S. accounts under the Final Regulations identified by 31 December 2014, and reported by 31 March 2015. Highlights of the form:
Part I – Identification of Filer
- The name and identifying information of the filer of the form, including its GIIN or TIN. Presumably only one or the other of these two boxes for identifying numbers will be completed by the filer.
- When a sponsoring entity or other intermediary is filing the form, that filer is identified in Boxes 1-5. Following identification of the first filer, the sponsored FFI or other intermediary is identified in Boxes 6-10.
Part II – Account Holder or Recipient Information
- The identification of the account holder, who may or may not be the specified U.S. person or owner, is to be provided in Part II. To be identified are: the owner-documented FIs (ODFFI) with specified U.S. owners, non-participating FIs, passive non-financial foreign entities (NFFE) with specified U.S. owners and specified U.S. persons.
- While the address and TIN are noted on the form, the final regulations dropped this requirement for account holders that are passive NFFEs with substantial US owners. It is anticipated the instructions will provide further guidance on this issue.
Part III – Identifying Information of U.S. Owners that are specified U.S. Persons
- The identification of the specified U.S. person or owner of an ODFFI or passive NFFE within the account that was denoted in Part II is to be reported in the boxes of Part III.
- Filers of the Form will need to be able to capture and report this underlying specified U.S. person or owner’s address and tax identification number.
Part IV – Financial Information
- For 2014 reporting, only the boxes for account number, currency code, and account balance are required. After 2015, all amounts must be reported in Part IV.
- In line with the final regulations, there is a foreign currency code in box 2 of Part IV. The filer will be permitted to report in local currency when reporting account balance and types of withholdable payments in boxes 3-4d.
Part V – Pooled Reporting Type
- For occasions when account holder identification information is not available or permissible to report, the amounts corresponding to such accounts must be reported in one of six reporting pools.
For Your Reference
The draft form can be accessed by clicking this link:
http://www.irs.gov/pub/irs-dft/f8966--dft.pdf (PDF, 77KB)
For further information, please do not hesitate to contact us.
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