The US IRS today announced it has relaxed rules applicable to US and foreign financial institutions that are required to obtain taxpayer identification numbers (TINs) and dates of birth under temporary regulations under Chapter 3 or a Model 1 Intergovernmental Agreement (IGA).
Notice 2017-46, provides that foreign financial institutions (FFIs) in Model 1 IGA jurisdictions will not be in significant non-compliance with an applicable IGA during 2017, 2018, and 2019 because of a failure to report US TINs for preexisting accounts, provided the FFI reports the account holder’s date of birth, makes annual requests for the TIN, and searches its electronic records for missing US TINs before reporting information on 2017.
Also, with respect to US financial institutions, the notice delays the start date of the requirement to collect foreign TINs for account holders to January 1, 2018; provides a phase-in period for obtaining foreign TINs from account holders documented prior to January 1, 2018; and narrows the circumstances in which a foreign TIN is required.
The Service said that amendments will be made to the temporary Chapter 3 regulations reflecting the contents of the notice.
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