- IRS enforcement and administration with respect to the implementation of FATCA; and
- With respect to certain related US withholding and reporting requirements.
The Notice explains that the transition period is being provided to facilitate an orderly transition for withholding agents and FFIs to comply the FATCA requirements. This will be strengthened by the issue of regulations in the future. The notice is in response to various comments and submissions made regarding certain aspects of the US regulations under chapters 3 and 4.
Notice 2014-33 also announces that the Treasury Department and IRS intend to amend the regulations under sections 1441, 1442, 1471, and 1472 so as to provide:
- A FFI may treat an account held by an entity that is opened on or after 1 July 2014 and before 1 January 2015 as a “pre-existing obligation” for the purposes of sections 1471 and 1472 (subject to certain modifications); and
- Various guidance concerning the requirements for an FFI that is a member of an expanded affiliated group to be treated as a “limited FFI” (or “limited branch”), modifications to the standards of knowledge under the US regulations for accounts documented before 1 July 2014 and amendments to the definition of a reasonable explanation of foreign status under the US regulations.
Before these changes are made to the regulations, financial institutions may rely on the provisions of Notice 2014-33 regarding these proposed amendments to the regulations.