Proposed Foreign Financial Institution Guidance Released

October 29, 2013

On October 29, 2013, the U.S. Treasury and the IRS released proposed guidance for Foreign Financial Institutions (FFIs) under the Foreign Account Tax Compliance Act (FATCA). This guidance, Notice 2013-69 [PDF], is an important next step toward FATCA implementation and the upcoming July 1, 2014, deadline.

Who Does This Impact?

Notice 2013-69 provides guidance to comply with the terms of an FFI agreement to:

• Participating FFIs (PFFIs)—FFIs entering into an agreement with the IRS to be treated as PFFIs

• Reporting Model 2 FFIs—FFIs and their branches treated as reporting financial institutions under an applicable Model 2 intergovernmental agreement (IGA)

What Is Included?

Items outlined in the notice include:

• Background on the statutory and regulatory requirements for FFIs exempt from withholding

• General responsibilities of Participating FFIs and Reporting Model 2 FFIs and updates to regulations and forms

• Registration procedures for Participating FFIs and Reporting Model 2 FFIs

• The draft FFI agreement, which will be finalized by December 31, 2013