The US IRS on January 19 announced in Notice 2016-08 that it will amend existing regulations under sections 1441–1464 and 1471–1474 regarding the timing of submitting preexisting accounts and periodic certifications, reporting of accounts of nonparticipating foreign financial institutions (FFIs), and reliance on electronically furnished forms W-8 and W-9.
Taxpayers may rely on the notice immediately, the Service said.
In a press release, the IRS summarized the changes as follows, stating they reflected an intent to:
(i) provide that a participating 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);
(ii) specify 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;
(iii) modify calendar year 2015 transitional reporting rules concerning gross proceeds paid to, or with respect to, a nonparticipating FFI’s account; and
(iv) permit withholding agents to rely upon electronically furnished Forms W-8 and W-9 collected by intermediaries and flow-through entities.
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