United States: FATCA default notices guidance, updated FAQs

FATCA default notices guidance, updated FAQs

The IRS today issued a release concerning the FATCA regime.

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The IRS transmittal message reports:

  • The IRS published “Procedures for FATCA Certification Event of Default Notices” to describe the IRS Foreign Payments Practice (FPP) process for addressing noncompliance with the FATCA certification requirements. These procedures outline the event of default notice timeline, the request for reconsideration process, the appeals process, and remediation plan guidance.
  • The IRS published a new FATCA “frequently asked question” (FAQ) related to registration statuses changed to “Agreement Terminated.” The text of new FAQ 18 is as follows:

Q18. Why did my registration status change to Agreement Terminated? What can I do?

If your registration status is "Agreement Terminated," it is because the IRS has identified an issue with your registration.  Please review your registration message board for any messages regarding why your registration status was changed to "Agreement Terminated."

Entities that have their registrations terminated and Global Intermediary Identification Number (GIIN) removed from the Foreign Financial Institution (FFI) List due to non-compliance with the FATCA certification requirement must not re-register for a new GIIN in the FATCA Registration System.  The IRS reviews all registrations and entities that are found to have re-registered for a new GIIN after being terminated will not maintain their "Approved" registration status.

If an entity requires its GIIN to be reinstated, it must contact the IRS' Foreign Payments Practice (FPP) by mail or email (information provided in the events of default notice on the FATCA registration message board) to apply for reinstatement and follow the outlined Procedures for FATCA Certification Event of Default Notices.

Added: 04-15-2020

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