On 30 June 2014, the U.S. Department of Treasury and IRS released for publication in the Federal Register corrections that relate to the final and temporary regulations under FATCA (T.D. 9657). These regulations were originally released in late February 2014 and published in the Federal Register in March 2014.
Within this correction regulation package, several citations and cross references are corrected. The correcting amendments also include the addition, deletion, or modification of language with the intent to clarify the relevant provisions thereby accomplishing the intended purpose. Some of the corrections, contained in these documents, include language that was inadvertently removed in the final and temporary regulations.
Highlights of T.D. 9657
The final and temporary regulations that are the subject of corrections are §§1.471-1T through 1.1474-1T. These regulations affect U.S. withholding agents that make certain U.S. source payments to FFIs, other foreign entities, persons presumed to be foreign, as well as certain FFIs required under an FFI Agreement or IGA to identify and perform due diligence on its account holders. The corrections clarify ambiguities, for example, in the definitions of “U.S. branch treated as a U.S person,” in chapters 3 and 4, and also made substantive amendments to the regulations. Highlights:
For Your Reference
In Revenue Procedure 2014-38, the IRS released updates to the FFI Agreement entered into by foreign financial institutions (FFIs) and the IRS, allowing FFIs to be treated as Participating FFIs (PFFIs).
The IRS issued an initial draft of the FFI Agreement in October 2013 (Notice 2013-69) and a final agreement in December 2013 (Rev. Proc. 2014-10). The issuance of Rev. Proc. 2014-38 further amends the FFI Agreement to provide changes consistent with the Temporary Treasury Regulations (issued Feb. 2014), Notice 2014-33, and planned changes to the pending Final Treasury Regulations. Notable changes are provided below.
For Your Reference
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