The IRS today released an advance version of Notice 2017-46 that sets forth procedures for certain foreign financial institutions required to report U.S. taxpayer identification numbers (“U.S. TINs”) for certain accounts under a FATCA Model 1 intergovernmental agreement (IGA).
Notice 2017-46 [PDF 57 KB] is summarized, as follows:
With respect to foreign financial institutions (FFIs)—the notice provides that FFIs in Model 1 IGA jurisdictions will not be in “significant non-compliance” with an applicable IGA during 2017, 2018, and 2019 solely because of a failure to report U.S. TINs for preexisting accounts, provided the FFI:
With respect to U.S. financial institutions—today’s notice:
The IRS notice also announces that the IRS and U.S. Treasury Department intend to amend provisions under the temporary regulations under chapter 3, to provide limitations on—and a phase-in of—the requirement for certain withholding agents to obtain and report the TIN issued by an account holder’s jurisdiction of tax residence (a “foreign TIN”) and for an account holder who is an individual, the account holder’s date of birth.
According to the IRS, taxpayers may rely on the provisions of Notice 2017-46 before the amendments to the temporary Chapter 3 regulations reflecting the guidance in today’s notice.
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