FATCA: IRS guidance on WP/WT deadlines for submitting applications

FATCA: IRS guidance on WP/WT deadlines

The IRS issued a release that addresses what is the effective date when an entity submits an application for withholding foreign partnership (WP) or withholding foreign trust (WT) status on or after 1 April and is approved for this status.

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The IRS release [PDF 92 KB] explains that the effective date of the WP or WT agreement would be as follows:

  • Section 12.01(B) of the WP and WT agreements (Rev. Proc. 2014-47) provides that, for calendar years after 2014, if the application for WP status or WT status is submitted on or after 1 April, the effective date of the agreement is 1 January of the calendar year following the year in which the application was submitted.
  • If an entity submits an application to be a WP or WT on or after 1 April and does not receive any reportable amounts between 1 January of the calendar year in which the WP or WT application is submitted and the date of approval, the entity will have a WP or WT agreement with an effective date of the date when it is issued a WP-EIN or WT-EIN (provided that it obtains a GIIN within 90 days of such approval, unless it is a retirement fund).  All other entities applying for WP or WT status on or after 1 April that are approved during the calendar year will have a WP or WT agreement with an effective date of 1 January of the following calendar year.

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