The IRS today issued a reminder for foreign financial institutions to renew their Foreign Financial Institution (FFI) agreements if required by the 24 October 2017 deadline. Failure to renew an FFI agreement by the 24 October deadline will result in the group being removed from the November FFI list—and thus, subject to a 30% withholding tax on certain U.S. source payments.
As noted in the IRS release—IR-2017-174—an FFI must determine whether it is required to renew its FFI agreement. The IRS release provides information in table format to assist FFIs with the determination.
If an FFI has determined that it is required to renew, the FFI is directed to log into the “FATCA FFI Registration” system and click on the link to “Renew FFI Agreement.” The FFI will then need to verify, update (if needed), and submit the registration to renew the FFI agreement.
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