CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IRS Issues Its First FATCA Financial Institutions List

IRS Issues Its First FATCA Financial Institutions List

by Mike Godfrey, Tax-News.com, Washington

05 June 2014


Around 77,000 banks and other foreign financial institutions (FFIs) have already registered with the United States and received a global intermediary identification number (GIIN), to comply with the Foreign Account Tax Compliance Act (FATCA), as shown in the first list published by the Internal Revenue Service (IRS) on June 2, 2014.

FATCA, enacted by the US Congress in 2010, is intended to ensure that the US obtains information on accounts held at FFIs by US persons. Failure by an FFI to disclose information on their US clients will result in a requirement to withhold 30 percent tax on payments of US-sourced income.

FATCA will go into operation on July 1 this year, but, with regard to its reporting, due diligence, and withholding provisions, and so as to facilitate an orderly transition, the IRS is to refrain from rigorously enforcing many of its requirements in calendar years 2014 and 2015, as long as FFIs are making a good-faith effort to achieve compliance, such as completing their FATCA registration, where necessary, and obtaining a GIIN.

The IRS has published the first FFI list on its website, and included a link to a search and download application to ensure ease of use. In addition, a user guide has been posted online to explain the features provided.

The FFI List can be downloaded in its entirety or searched for specific information (FFI name, GIIN or country). Withholding agents may rely on an FFI's claim of FATCA status based on checking the payee's GIIN against the published FFI List.

A cumulative updated FFI list will now be posted monthly that will contain the names of all FFIs that have completed FATCA registration with the IRS and obtained a GIIN up to 5 business days before the end of the previous month. The first updated list will be posted by the IRS on July 1.

FFIs are still advised to refer to the FATCA regulations and other FATCA guidance for the rules concerning the need to identify and document account holders and payees; the need to withhold on withholdable payments (including transitional rules); and the need to report information to the IRS (or to the tax authority of a Model 1 intergovernmental agreement jurisdiction) concerning certain accounts and payees.

TAGS: compliance | Foreign Account Tax Compliance Act (FATCA) | tax | tax compliance | FATCA | law | banking | financial services | Internal Revenue Service (IRS) | tax authority | United States | regulation | services | Compliance | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »