William Byrnes' Tax, Wealth, and Risk Intelligence

The IRS issued this past week the draft of the financial institution FATCA reporting form (Form 8966 – “FATCA Report”).  The FATCA Report form, dated August 13, 2013 but released the following day, is for foreign financial institutions and also withholding agents to report financial information about account holders.

The Form has 5 parts:

(1) Identification of Filer,

(2) Account Holder or Recipient Information,

(3) Identifying Information of U.S. Owners that are specified U.S. Persons,

(4) Financial Information, and

(5) Pooled Reporting Type.

The Financial Information part contains 7 reporting fields, being: (1) account number, (2) currency code, (3) account balance, (4) interest, (5) dividends, (6) gross proceeds/redemptions, and (7) other.

The “Pooled” Reporting requires the FFI to indicate firstly which of six buckets the underlying accounts fall into, then secondly, financial information about the bucket.

The 6 buckets are:

(1) Recalcitrant account holders with U.S. Indicia,

(2) Dormant Accounts,

(3) Recalcitrant account holders that are U.S. persons,

(4) Recalcitrant account holders without U.S. Indicia,

(5) Non-participating foreign financial institutions, and

(6) Recalcitrant account holders that are passive NFFEs

The reported financial information includes: (a) number of accounts, (b) aggregate payment amount, (c) aggregate account balance and (d) currency code.

You may link to the new > draft Form 8966 <

Find more information about FATCA, including complimentary chapter download, at Lexis’ Guide to FATCA Compliance