FATCA - IRS provides “user guide” containing registration guidelines
The IRS has recently issued a “user guide” publication with respect to the Foreign Account Tax Compliance Act (FATCA).
The IRS Publication 5118 (PDF, 2 MB) sets forth, in 75 pages, the purpose for FATCA registration, an overview of the registration system and process, and information about the Global Intermediary Identification Number (GIIN).
With respect to FATCA registration, detailed information about creating a new account and how to edit information is provided. The IRS publication includes a glossary of terms and contact information.
IRS Issues Final Form-8957 and Instructions for FATCA FI Registration
The IRS released Form 8957, Foreign Account Tax Compliance Act (FATCA) Registration. This form finalizes the draft issued earlier this year and is essentially unchanged. (For additional information on the draft form, see e-Alert 2013-08 issued in April 2013)
Purpose of Form 8957
Form 8957 is used by an FI to register itself and its branches, if any, as a:
- Participating foreign financial institution (PFFI)
- Registered deemed-compliant foreign financial institution (RDCFFI)
- Limited foreign financial institution (Limited FFI)
- Limited branch (Limited Branch)
- Sponsoring entity (Sponsoring Entity).
It is also used by an FI to renew its Qualified Intermediary (QI), Withholding Foreign Partnership (WP), or Withholding Foreign Trust (WT) Agreement, if applicable.
Form 8957 can be used by financial institutions (FIs) to register in paper form instead of electronically using the recently unveiled IRS Online Registration Portal. (For additional information on the Online Registration Portal, see e-Alert 2013-19 issued in August 2013.)
An FI choosing to register its FATCA status on paper is instructed not to mail its completed form to the IRS before 1 January 2014. Form 8957 should be mailed to:
Internal Revenue Service
FATCA, Stop 6099 AUSC
3651 South IH 35
Austin, Texas 78741
IRS Processing of Paper Form 8957
Upon receipt of a completed paper form, the IRS will establish an online FATCA account for the FI and provide the FI with information on how to access the online FATCA account to view, manage, and edit its FATCA information. Following registration approval, an FI that registers for PFFI or RDCFFI status using the paper form, will receive a GIIN. The GIIN will be assigned and posted to the FI’s online FATCA account.
If the paper FATCA registration form is incomplete, the FI will be contacted by mail to provide additional information necessary for the IRS to process the registration form and establish the FI’s online account.
Completing the Form
There are four parts to the FATCA registration form. An FI will need to complete only the relevant parts of the form for the particular type of registration requested.
- Part 1, Financial Institution Registration
- Must be completed by all FIs to provide basic identifying information
- Part 2, Information on Member FIs of an EAG
- Should be completed only by a Lead FI and must be completed via the FATCA registration website.
- A Lead FI will identify in Part 2 each Member FI for which it is acting as a Lead FI and that is treated as a PFFI (including a Reporting FI under a Model 2 IGA), RDCFFI (including a Reporting FI under a Model 1 IGA), or Limited FFI.
- For purposes of registration, a Member FI may include a foreign branch of a USFI that is registering to obtain a GIIN or to renew its QI Agreement.
- Part 3, Renewal of Existing Agreements for QIs, WPs, or WTs:
- Part 3 should be completed only by an FI, including a foreign branch of a USFI, currently acting as a QI, WP, or WT that wishes to renew its respective agreement.
- Part 3 should be completed only by an FI currently acting as a QI, WP, or WT and currently using an issued Employer Identification Number (EIN) to establish its applicable status.
- An FI that would like to apply to become a first-time QI, WP, or WT cannot do so using the paper Form 8957 or the FATCA registration website. Instead, the FI must complete Form 14345, Qualified Intermediary Application. It is advisable, but not required, for an FI applying for first-time QI, WP, or WT status do so before it submits its FATCA registration form.
- Must be completed by all FIs
- Requires an FI to certify that the information provided on the FATCA registration form is accurate and complete, and to agree or confirm that it will comply with its FATCA obligations, if applicable, in accordance with the status or statuses for which it has registered itself or any of its branches.
- An FI, including a Reporting FI under a Model 1 or 2 IGA, that is registering to renew its QI, WP, or WT Agreement will be agreeing to the terms of such renewed 2014 Model QI, WP, or WT Agreements.
Instructions for Form 8957
Also released were Instructions for Form 8957 and in many ways, the instructions mirror those provided for the IRS Registration Portal. Highlights:
- Registration Definitions: for purposes of FATCA registration, definitions are provided in the Instructions to help guide FIs through the process.
- Line-by-line instructions for completing Form 8957 are also provided
For Your Reference
Form 8957 (f8957.pdf) and the Instructions to Form 8957 (i8957.pdf) can be accessed by following this link
For further information, please do not hesitate to contact us.
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