Notice 2013-69 - Text of draft FATCA agreement for use by foreign financial institutions 

October 29: The IRS today released an advance copy of Notice 2013-69 as guidance to foreign financial institutions (FFIs) entering into an FFI agreement with the IRS under the FATCA* provisions and to be treated as participating FFIs. The notice also includes text of a draft FFI agreement.

*Foreign Account Tax Compliance Act (FATCA)

Notice 2013-69 [PDF 170 KB] states that the FFI agreement will be finalized by December 31, 2013.

The IRS notice in general provides guidance to FFIs and reporting Model 2 FFIs on complying with the terms of an FFI agreement, as modified by the IGA (referred to as “Model 2 FFIs”). A “reporting Model 2 FFI” is defined as an FFI and branch of an FFI treated as a reporting financial institution under a Model 2 intergovernmental agreement.

Contents of Notice 2013-69

Notice 2013-69 provides:

  • The background on the statutory and regulatory requirements for FFIs to be exempt from withholding under the FATCA provisions
  • A description of the general responsibilities of participating FFIs and reporting Model 2 FFIs, and some of the intended updates to the regulations under the FATCA and withholding provisions of the Code and related forms
  • Procedures for FFIs to register for participating FFI or reporting Model 2 FFI status
  • A draft FFI agreement (which substantially incorporates the provisions set forth in Reg. section 1.1471-4)

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