IRS’ FATCA Registration System Updates
Posted by William Byrnes on December 16, 2013
FATCA Registration Portal
FATCA requires that FFIs, through a responsible officer (a.k.a. “FATCA compliance officer”), make regular certifications to the IRS via the FATCA Portal, as well as annually disclose taxpayer and account information for U.S. persons, unless an intergovernmental agreement (“IGA”) allows for indirect reporting to the IRS via a foreign government. On Monday, August 19 the IRS opened its online FATCA registration system for financial institutions that need to register for compliance with the Foreign Account Tax Compliance Act. [See https://sa2.www4.irs.gov/fatca-rup/login/userLogin.do.]
This critical FATCA milestone was supposed to open July 15; however only on July 12 did the IRS issued a postponement, as well as a push back all of the corresponding impacted milestones and deadlines. See Lexis article: FATCA FFI Compliance Extended; FATCA Portal, Other Key Dates Pushed Back.
Participating FFI List to Avoid FATCA Withholding
FFIs will now have four months, until April 25, 2014, to register on this portal to be included on the Participating FFI List that the IRS will publish June 2, 2014. Beginning July 1, 2014, withholding agents will implement the 30 percent FATCA withholding on payments of U.S. source income, including portfolio interest and capital gains, made to FFIs not on the Participating FFI list.
Global Intermediary Identification Number (GIIN)
An FFI will be included on the Participating FFI (“PFFI”) List if the FFI has registered via the FATCA Portal that the FFI agrees to comply with the IRS’ Foreign Financial Institution Agreement (“FFI Agreement”). The IRS will begin issuing each PFFI a Global Intermediary Identification Number (GIIN) as portal registrations are finalized by April 25, 2014. The PFFI will then include on its certification to U.S. withholding agents that GIIN — allowing matching against the PFFI List. [On April 8. 2013 the IRS released a sample of the PFFI List schema with example GIINs. See http://www.irs.gov/Businesses/International-Businesses/IRS-FFI-List-Schema-and-Test-Files.]
The following changes were made to the FATCA Registration System on December 8, 2013. For more detailed information, refer to Appendix A in the updated FATCA Registration Online User Guide.
1. Corrections to reported problems:
(a) Corrects problems with Member PDF file – currently only displays last 50 members in list, times out when there is a large number of members
(b) Corrects problem with deleting PAI contracts in part 3, question 15
(c) Corrects problem with missing header for part 4 when a lead goes from part 2 to part 4 of the form
2. Wording updates
(a) Minor wording changes to registration screens (Questions 10, 11a, 11b, POC Authorization, Part 4 – Submit)
(b) Wording changes to help text, including “instructions” page and “get help” page
(c) Wording change on error message for locked account – multiple user login
(d) Wording changes on FI home pages
(e) Updates to external content linked to from registration system
(f) Update to country drop down list for questions with countries
(a) Additional statuses added
(b) Additional information added on FI home pages, including link to manage branch information
(c) Added ability to download branch information to a PDF file
(d) Added notifications to FI’s, including external email notifications to RO for certain status changes
For the period from the opening of the FATCA registration website through December 31, 2013, a financial institution (FI) will be able to access its online account to modify or add registration information.
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 January 1, 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 global intermediary identification number (GIIN).
Below find a link to IRS instructions, user guide and video materials to assist you and your financial institution with FATCA registration:
|“How-to” videos to assist financial institutions with FATCA registration:|
FATCA Compliance Program and Manual
Fifty contributing authors from the professional and financial industry produced LexisNexis® Guide to FATCA Compliance (2nd Edition). The second edition has been expanded from 25 to 34 chapters, with 600 pages of regulatory and compliance analysis.
The previous 25 chapters have been substantially updated, including many more practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA. The nine new chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters. Chapter 7 has been drafted for a financial institution’s compliance officer, Chapter 9 for the trust department compliance officer, and Chapter 10 for the insurance firm’s compliance officer. Chapter 7 provides a new section analyzing the compliance risks with the IRS’ recently released draft FFI agreement.
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of FATCA’s application for certain trading partners of the U.S. (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems.
The FATCA compliance officer responsible for an enterprise with multiple lines of business in multiple jurisdictions is particularly at risk of missing this critical registration deadline and other important compliance milestones, especially in jurisdictions that do not have a Model 1 IGA with the U.S. This LexisNexis® Guide to FATCA Compliance contains three chapters written specifically to guide a financial institution’s lead FATCA compliance officer in designing a plan of internal action within the enterprise, interaction with outside FATCA advisors with a view of best leveraging available resources and budget, and systems management [see Chapters 2, 3 and 4].