Notice 2016-08: IRS to revise timing of certain FATCA reporting

IRS Notice 2016-08 revises timing of FATCA reporting

The IRS today released an advance version of Notice 2016-08 announcing an intention to amend provisions of the regulations under chapter 3 (sections 1441-1464) and chapter 4 (sections 1471-1474). An IRS transmittal message explains that Notice 2016-08:

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  • Provides that a participating foreign financial institution (FFI) or a reporting Model 2 FFI will submit its preexisting account certification to the IRS by the same date it is required to submit its first periodic certification of compliance (thereby providing a deferral of the submission date for the preexisting account certification)
  • Specifies the time period and date for submitting a registered deemed compliant FFI’s periodic certification of compliance and provide guidance to local FFIs and restricted funds concerning their obligation to report preexisting accounts
  • Modifies calendar year 2015 transitional reporting rules concerning gross proceeds paid to, or with respect to, a nonparticipating FFI’s account
  • Permits withholding agents to rely upon electronically furnished Forms W-8 and W-9 collected by intermediaries and flow-through entities

According to Notice 2016-08 [PDF 46 KB], these changes will “ease burdens on FFIs” and also respond to comments concerning certain aspects of the regulations. The IRS notice provides that taxpayers may rely on today’s guidance prior to the issuance of amended regulations.

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