Luxembourg: Notice of unknown or invalid U.S. TINs

Luxembourg reporting financial institutions have 120 days to remedy unknown U.S. TIN issue

Luxembourg reporting financial institutions have 120 days to remedy unknown U.S. TIN issue

The Luxembourg tax authority announced that beginning in October 2021, letters will be sent to Luxembourg reporting financial institutions that have submitted FATCA declarations and that triggered an IRS notice for administrative and/or minor errors following the use of an unknown U.S. tax identification number (TIN) code or an invalid TIN.

The Luxembourg reporting financial institutions have 120 days to remedy the unknown U.S. TIN issue, after which the IRS (the U.S. tax agency) will begin assessing accounts for significant non-compliance.

The IRS will take into consideration all facts and circumstances, including: (1) the reasons why the U.S. TIN could not be obtained by the financial institution; (2) the financial institution’s procedures to obtain the TINs; and (3) the efforts made in this context.

Read a September 2021 report [PDF 483 KB] prepared by the KPMG member firm in Luxembourg

 

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