The IRS today issued a release as a reminder to foreign financial institutions to renew their foreign financial institution (FFI) agreement (if required) by October 24, 2017.
As noted in today’s IRS release (IR-2017-153), foreign financial institutions that do not renew their agreements could be removed from the November FFI list and be subject to a 30% tax on certain U.S. source payments. Those required to renew their FFI agreements and do not do so by October 24, 2017, will be treated as having terminated their FFI agreements as of January 1, 2017.
The IRS release directs all financial intuitions to login to the system for a determination. The FATCA FFI registration system has been updated to include the ability for foreign financial institutions to renew their agreements with the IRS. Once logged into the registration system, a financial institution can determine whether it must renew its FFI agreement using the link to “Renew FFI Agreement.” A table in today’s release provides guidance regarding entities required to renew their FFI agreement and instructions to assist with this determination. Once the determination is made, the system enables a financial institution to review and edit the registration form as needed. The financial institution will need to verify and update the registration information and submit to renew the FFI agreement.
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