82 FR 29728 - Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 82, Issue 125 (June 30, 2017)

Page Range		29728-29730
FR Document		2017-13632

This document contains corrections to final and temporary regulations (TD 9809) that were published in the Federal Register on Friday, January 6, 2017 (82 FR 2124). The final and temporary regulations under chapter 4 of the Subtitle A (sections 1471 through 1474) of the Internal Revenue Code of 1986 (Code) relate to information reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on certain payments to FFIs and other foreign entities.

Federal Register, Volume 82 Issue 125 (Friday, June 30, 2017)

[Federal Register Volume 82, Number 125 (Friday, June 30, 2017)]
[Rules and Regulations]
[Pages 29728-29730]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13632]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9809]
RIN 1545-BL72
RIN 1545-BN79


Regulations Relating to Information Reporting by Foreign 
Financial Institutions and Withholding on Certain Payments to Foreign 
Financial Institutions and Other Foreign Entities; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9809) that were published in the Federal Register on 
Friday, January 6, 2017 (82 FR 2124). The final and temporary 
regulations under chapter 4 of the Subtitle A (sections 1471 through 
1474) of the Internal Revenue Code of 1986 (Code) relate to information 
reporting by foreign financial institutions (FFIs) with respect to U.S. 
accounts and

[[Page 29729]]

withholding on certain payments to FFIs and other foreign entities.

DATES: These corrections are effective June 30, 2017 and are applicable 
beginning January 6, 2017.

FOR FURTHER INFORMATION CONTACT: Kamela Nelan at (202) 317-6942 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9809) that are the subject 
of this correction are under sections 1471 through 1474 of the Internal 
Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9809) contain 
errors which may prove to be misleading and need to be clarified. Some 
portions of TD 9809 could not be incorporated due to inaccurate 
amendatory instructions. Several of the correcting amendments to TD 
9809 are needed to clarify or correct the results of inaccurate 
amendatory instructions. These correcting amendments also include the 
addition, deletion, or modification of regulatory language to clarify 
the relevant provisions to meet their intended purposes or for 
consistency with other related provisions of these regulations. The 
addition of final regulatory language includes language that was 
inadvertently removed in a prior amendment to the final regulations.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *


0
Par. 2. Section 1.1471-1T is amended by revising the third sentence of 
paragraph (b)(99) to read as follows:


Sec.  1.1471-1T   Scope of chapter 4 and definitions (temporary).

* * * * *
    (b) * * *
    (99) * * * An address that is provided subject to instructions to 
hold all mail to that address must be accompanied by certain 
documentary evidence described in Sec.  1.1441-1(c)(38)(ii). * * *
* * * * *

0
Par. 3. Section 1.1471-2 is amended by revising the third sentence of 
paragraph (a)(2)(i) to read as follows:


Sec.  1.1471-2  Requirement to deduct and withhold tax on withholdable 
payments to certain FFIs.

    (a) * * *
    (2) * * *
    (i) * * * Further, a withholding agent is not required to withhold 
on a payment that it can reliably associate with documentation 
indicating that the payee is a U.S. branch treated as a U.S. person (as 
defined in Sec.  1.1471-1(b)(135)) or is a U.S. branch of an FFI that 
is not treated as a U.S. person but that applies the rules described in 
Sec.  1.1471-4(d)(2)(iii)(C). * * *
* * * * *

0
Par. 4. Section 1.1471-3 is amended by revising paragraph (b)(3) to 
read as follows:


Sec.  1.1471-3   Identification of payee.

* * * * *
    (b) * * *
    (3) Determination of whether the payment is made to a QI, WP, or 
WT. A withholding agent may treat the person who receives a payment as 
a QI, WP, or WT if the withholding agent can reliably associate the 
payment with a valid Form W-8IMY, as described in paragraph (c)(3)(iii) 
of this section, that indicates that the person who receives the 
payment is a QI, WP, or WT, provides the person's QI-EIN, WP-EIN, or 
WT-EIN, and the person's GIIN, if applicable.
* * * * *

0
Par. 5. Section 1.1471-4 is amended by revising paragraph (d)(3)(ii)(E) 
and adding a heading to paragraph (d)(7) to read as follows:


Sec.  1.1471-4  FFI agreement.

* * * * *
    (d) * * *
    (3) * * *
    (ii) * * *
    (E) Such other information as is otherwise required to be reported 
under this paragraph (d)(3) or in the form described in paragraph 
(d)(3)(v) of this section and its accompanying instructions.
* * * * *
    (7) Special reporting rules with respect to the 2014 and 2015 
calendar years--
* * * * *

0
Par. 6. Section 1.1471-4T is amended by revising paragraph 
(d)(2)(ii)(G) introductory text to read as follows:


Sec.  1.1471-4T  FFI agreement (temporary).

* * * * *
    (d) * * *
    (2) * * *
    (ii) * * *
    (G) Combined reporting on Form 8966 following merger or bulk 
acquisition. If a participating FFI (successor) acquires accounts of 
another participating FFI (predecessor) in a merger or bulk acquisition 
of accounts, the successor may assume the predecessor's obligations to 
report the acquired accounts under paragraph (d) of this section with 
respect the calendar year in which the merger or acquisition occurs 
(acquisition year), provided that the requirements in paragraphs 
(d)(2)(ii)(G)(1) through (4) of this section are satisfied. If the 
requirements of paragraphs (d)(2)(ii)(G)(1) through (4) of this section 
are not satisfied, both the predecessor and the successor are required 
to report the acquired accounts for the portion of the acquisition year 
that it maintains the account.
* * * * *

0
Par. 7. Section 1.1471-5 is amended by adding paragraph 
(f)(1)(i)(F)(3)(viii) and revising paragraph (f)(2)(iii)(C) to read as 
follows:


Sec.  1.1471-5   Definitions applicable to section 1471.

* * * * *
    (f) * * *
    (1) * * *
    (i) * * *
    (F) * * *
    (3) * * *
    (viii) Has not had its status as a sponsoring entity revoked.
* * * * *
    (2) * * *
    (iii) * * *
    (C) Twenty or fewer individuals own all of the debt and equity 
interests in the FFI (disregarding debt interests owned by U.S. 
financial institutions, participating FFIs, registered deemed-compliant 
FFIs, and certified deemed-compliant FFIs and equity interests owned by 
an entity if that entity owns 100 percent of the equity interests in 
the FFI and is itself a sponsored FFI under this paragraph 
(f)(2)(iii)).
* * * * *

0
Par. 8. Section 1.1474-1 is amended by:
0
1. Revising paragraphs (d)(4)(i)(C)(2) and (3).
0
2. Adding paragraph (d)(4)(ii)(C).
0
3. Revising the heading of paragraph (d)(4)(iii), and paragraphs 
(d)(4)(iii)(A) and (B).
    The revisions and addition read as follows:


Sec.  1.1474-1  Liability for withheld tax and withholding agent 
reporting.

* * * * *

[[Page 29730]]

    (d) * * *
    (4) * * *
    (i) * * *
    (C) * * *
    (2) If the U.S. branch of an FFI is not treated as a U.S. person 
and applies the rules described in Sec.  1.1471-4(d)(2)(iii)(C) and 
provides the withholding agent with a withholding certificate that 
transmits information regarding its reporting pools referenced in 
paragraph (d)(4)(i)(B) of this section or information regarding each 
recipient that is an account holder or payee of the U.S. branch, the 
withholding agent must complete a separate Form 1042-S issued to the 
U.S. branch for each such pool to the extent required on the form and 
its accompanying instructions or must complete a separate Form 1042-S 
issued to each recipient whose documentation is associated with the 
U.S. branch's withholding certificate as described in paragraph 
(d)(4)(ii)(A) of this section and report the U.S. branch as an entity 
not treated as a recipient; or
    (3) If the U.S. branch of an FFI is not treated as a U.S. person 
and applies the rules described in Sec.  1.1471-4(d)(2)(iii)(C) to the 
extent it fails to provide sufficient information regarding its account 
holders or payees, the withholding agent shall report the recipient of 
the payment as an unknown recipient to the extent recipient information 
is not provided and report the U.S. branch as provided in paragraph 
(d)(4)(ii)(A) of this section for an entity not treated as a recipient.
* * * * *
    (ii) * * *
    (C) Disregarded entities. If a U.S. withholding agent makes a 
payment to a disregarded entity and receives a valid withholding 
certificate or other documentary evidence from the person that is the 
single owner of such disregarded entity, the withholding agent must 
file a Form 1042-S treating the single owner as the recipient in 
accordance with the instructions to the Form 1042-S.
    (iii) Reporting by participating FFIs and deemed-compliant FFIs 
(including QIs, WPs, and WTs) and U.S. branches of FFIs not treated as 
U.S. persons--(A) In general. Except as otherwise provided in paragraph 
(d)(4)(iii)(B) (relating to NQIs, NWPs, NWTs, and FFIs electing under 
section 1471(b)(3)) and Sec.  1.1471-4(d)(2)(ii)(F) (relating to 
transitional payee-specific reporting for payments to nonparticipating 
FFIs), a participating FFI or deemed-compliant FFI (including a QI, WP, 
or WT), and a U.S. branch of an FFI that is not treated as a U.S. 
person that applies the rules described in Sec.  1.1471-4(d)(2)(iii)(C) 
that makes a payment that is a chapter 4 reportable amount to a 
recalcitrant account holder or nonparticipating FFI must complete a 
Form 1042-S to report such payments. A participating FFI or registered 
deemed-compliant FFI (including a QI, WP, or WT), and a U.S. branch of 
an FFI that is not treated as a U.S. person that applies the rules 
described in Sec.  1.1471-4(d)(2)(iii)(C) may report in pools 
consisting of its recalcitrant account holders and payees that are 
nonparticipating FFIs. With respect to recalcitrant account holders, 
the FFI may report in pools consisting of recalcitrant account holders 
within a particular status described in Sec.  1.1471-4(d)(6) and within 
a particular income code. Except as otherwise provided in Sec.  1.1471-
4(d)(2)(ii)(F), with respect to payees that are nonparticipating FFIs, 
the FFI may report in pools consisting of one or more nonparticipating 
FFIs that fall within a particular income code and within a particular 
status code described in the instructions to Form 1042-S. 
Alternatively, a participating FFI or registered deemed-compliant FFI 
(including a QI, WP, or WT) and a U.S. branch of an FFI that is not 
treated as a U.S. person that applies the rules described in Sec.  
1.1471-4(d)(2)(iii)(C) may (and a certified deemed-compliant FFI is 
required to) perform payee-specific reporting to report a chapter 4 
reportable amount paid to a recalcitrant account holder or a 
nonparticipating FFI when withholding was applied (or should have 
applied) to the payment.
    (B) Special reporting requirements of participating FFIs, deemed-
compliant FFIs, FFIs that make an election under section 1471(b)(3), 
and U.S. branches of FFIs not treated as U.S. persons. Except as 
otherwise provided in Sec.  1.1471-4(d)(2)(ii)(F), a participating FFI 
or deemed-compliant FFI that is an NQI, NWP, or NWT, and a U.S. branch 
of an FFI that is not treated as a U.S. person that applies the rules 
described in Sec.  1.1471-4(d)(2)(iii)(C) or an FFI that has made an 
election under section 1471(b)(3) and has provided sufficient 
information to its withholding agent to withhold and report the payment 
is not required to report the payment on Form 1042-S as described in 
paragraph (d)(4)(iii)(A) of this section if the payment is made to a 
nonparticipating FFI or recalcitrant account holder and its withholding 
agent has withheld the correct amount of tax on such payment and 
correctly reported the payment on a Form 1042-S. Such FFI or branch is 
required to report a payment, however, when the FFI knows, or has 
reason to know, that less than the required amount has been withheld by 
the withholding agent on the payment or the withholding agent has not 
correctly reported the payment on Form 1042-S. In such case, the FFI or 
branch must report on Form 1042-S to the extent required under 
paragraph (d)(4)(iii)(A) of this section. See, however, Sec.  1.1471-
4(d)(6) for the requirement to report certain aggregate information 
regarding accounts held by recalcitrant account holders on Form 8966, 
``FATCA Report,'' regardless of whether withholdable payments are made 
to such accounts.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2017-13632 Filed 6-29-17; 8:45 am]
BILLING CODE 4830-01-P

29728 Federal Register / Vol. 82, No. 125 / Friday, June 30, 2017 / Rules and Regulations

dealing with reliable association of a § 1.1471–3(c)(6)(ii)(C)(1). Further, a regardless of whether such
payment with documentation. payor may maintain such documentation or certification is
(3) Standards of knowledge. A payor documentation or documentary described in paragraph (c)(1) of this
may not rely on a withholding evidence as required in paragraph section or § 1.1441–1(e)(2).
certificate or documentary evidence (c)(4)(iv) of this section. (iii) Maintenance of documentation
described in paragraph (c)(1) or (4) of (i) Statement in lieu of documentary and written statement. A payor
this section if it has actual knowledge or evidence with respect to accounts. If maintains documentation if it either
reason to know that any information or under the local laws, regulations, or maintains the documentary evidence as
certification stated in the certificate or practices of a country in which an described in paragraph (c)(1) of this
documentary evidence is unreliable. A account is maintained, it is not section or retains a record of the
payor has reason to know that customary to obtain documentary documentary evidence reviewed if the
information or certifications are evidence described in paragraph (c)(1) payor is not required to retain copies of
unreliable only if the payor would have of this section with respect to the type the documentation pursuant to the
reason to know under the provisions of of account, the payor may, instead of payor’s AML due diligence (as defined
§ 1.1441–7(b)(2) and (3) that the obtaining a beneficial owner in § 1.1471–1(b)(4)). A payor retains a
information and certifications provided withholding certificate described in record of documentary evidence
on the certificate or in the documentary § 1.1441–1(e)(2)(i) or documentary reviewed by noting in its records the
evidence are unreliable or, in the case evidence described in paragraph (c)(1) type of documentation reviewed, the
of a Form W–9 (or an acceptable of this section, establish a payee’s date the document was reviewed, the
substitute), it cannot reasonably rely on foreign status based on the statement document’s identification number (if
the documentation as set forth in described in this paragraph (c)(4)(i) (or any), and whether such documentation
§ 31.3406(h)–3(e) of this chapter (see the such substitute statement as the Internal contained any U.S. indicia described in
information and certification described Revenue Service may prescribe) made § 1.1441–7(b)(8). Any statement
in § 31.3406(h)–3(e)(2)(i) through (iv) of on an account opening form. However, described in paragraph (c)(4)(i) of this
this chapter that are required in order see, also § 1.1471–4(c) or an applicable section, must be retained in accordance
for a payor reasonably to rely on a Form IGA for additional documentation with § 1.1471–3(c)(6)(iii).
W–9). The provisions of § 1.1441–7(b)(2) requirements that may apply to a
* * * * *
and (3) shall apply for purposes of this participating FFI (including a reporting
paragraph (c)(3) irrespective of the type Model 2 FFI) for determining the status Martin V. Franks,
of income to which § 1.1441–7(b)(2) is of its account holders for chapter 4 Chief, Publications and Regulations Branch,
otherwise limited. The exemptions from purposes. The statement referred to in Legal Processing Division, Associate Chief
reporting described in paragraphs this paragraph (c)(4)(i) must appear near Counsel (Procedure and Administration).
(b)(10) and (11) of this section shall not the signature line and must state, ‘‘By [FR Doc. 2017–13634 Filed 6–29–17; 8:45 am]
apply if the payor has actual knowledge opening this account and signing below, BILLING CODE 4830–01–P
that the payee is a U.S. person who is the account owner represents and
not an exempt recipient. warrants that he/she/it is not a U.S.
(4) Special documentation rules for person for purposes of U.S. Federal DEPARTMENT OF THE TREASURY
certain payments. This paragraph (c)(4) income tax and that he/she/it is not
modifies the provisions of paragraph acting for, or on behalf of, a U.S. person. Internal Revenue Service
(c)(1) of this section for payments of A false statement or misrepresentation
amounts that are not subject to of tax status by a U.S. person could lead 26 CFR Part 1
withholding under chapter 3 of the to penalties under U.S. law. If your tax
Code, other than amounts described in [TD 9809]
status changes and you become a U.S.
paragraph (d)(3)(iii) of this section citizen or a resident, you must notify us RIN 1545–BL72
(dealing with U.S. short-term OID and within 30 days.’’ Additionally, a payor RIN 1545–BN79
U.S. source deposit interest described in may, instead of obtaining a beneficial
section 871(i)(2)(A) or 881(d)(3)). owner withholding certificate described Regulations Relating to Information
Amounts are not subject to withholding in § 1.1441–1(e)(2)(i) or § 1.1471– Reporting by Foreign Financial
under chapter 3 of the Code if they are 3(c)(3)(ii) or documentary evidence Institutions and Withholding on
not included in the definition of described in paragraph (c)(1) of this Certain Payments to Foreign Financial
amounts subject to withholding under section, establish a payee’s foreign Institutions and Other Foreign Entities;
§ 1.1441–2(a) (e.g., deposit interest with status based on a written statement Correction
foreign branches of U.S. banks, foreign described in paragraph § 1.1471–
source income, or broker proceeds). A 1(b)(150) to the extent a payor uses such AGENCY: Internal Revenue Service (IRS),
payor may rely upon documentation in written statement to establish a payee’s Treasury.
lieu of documentary evidence (as chapter 4 status and is permitted to use ACTION: Correcting amendments.
described in paragraph (c)(1) of this the written statement under § 1.1471–
section) or a written statement (as 3(d) (by substituting the term ‘‘payor’’ SUMMARY: This document contains
defined in § 1.1471–1(b)(150)) or for the term ‘‘withholding agent’’) corrections to final and temporary
another statement to the extent without any other documentary regulations (TD 9809) that were
permitted in paragraphs (c)(4)(i) through evidence. published in the Federal Register on
(iii) of this section, until the payor (ii) Documentation under IGA. A Friday, January 6, 2017 (82 FR 2124).
mstockstill on DSK30JT082PROD with RULES

knows or has reason to know of a payor that is a reporting Model 1 FFI or The final and temporary regulations
change in circumstance that makes the reporting Model 2 FFI may rely upon under chapter 4 of the Subtitle A
documentation unreliable or incorrect documentation or information (sections 1471 through 1474) of the
(as defined in § 1.1441–1(e)) when the establishing a payee’s status that is Internal Revenue Code of 1986 (Code)
payor does not have customer permitted under an applicable IGA for relate to information reporting by
information for the payee that includes determining whether the account of the foreign financial institutions (FFIs) with
any of the U.S. indicia described in payee is other than a U.S. account and respect to U.S. accounts and

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29730 Federal Register / Vol. 82, No. 125 / Friday, June 30, 2017 / Rules and Regulations

(d) * * * makes a payment that is a chapter 4 withholding agent on the payment or
(4) * * * reportable amount to a recalcitrant the withholding agent has not correctly
(i) * * * account holder or nonparticipating FFI reported the payment on Form 1042–S.
(C) * * * must complete a Form 1042–S to report In such case, the FFI or branch must
(2) If the U.S. branch of an FFI is not such payments. A participating FFI or report on Form 1042–S to the extent
treated as a U.S. person and applies the registered deemed-compliant FFI required under paragraph (d)(4)(iii)(A)
rules described in § 1.1471– (including a QI, WP, or WT), and a U.S. of this section. See, however, § 1.1471–
4(d)(2)(iii)(C) and provides the branch of an FFI that is not treated as 4(d)(6) for the requirement to report
withholding agent with a withholding a U.S. person that applies the rules certain aggregate information regarding
certificate that transmits information described in § 1.1471–4(d)(2)(iii)(C) may accounts held by recalcitrant account
regarding its reporting pools referenced report in pools consisting of its holders on Form 8966, ‘‘FATCA
in paragraph (d)(4)(i)(B) of this section recalcitrant account holders and payees Report,’’ regardless of whether
or information regarding each recipient that are nonparticipating FFIs. With withholdable payments are made to
that is an account holder or payee of the respect to recalcitrant account holders, such accounts.
U.S. branch, the withholding agent must the FFI may report in pools consisting * * * * *
complete a separate Form 1042–S issued of recalcitrant account holders within a
to the U.S. branch for each such pool to particular status described in § 1.1471– Martin V. Franks,
the extent required on the form and its 4(d)(6) and within a particular income Chief, Publications and Regulations Branch,
accompanying instructions or must code. Except as otherwise provided in Legal Processing Division, Associate Chief
complete a separate Form 1042–S issued § 1.1471–4(d)(2)(ii)(F), with respect to Counsel (Procedure and Administration).
to each recipient whose documentation payees that are nonparticipating FFIs, [FR Doc. 2017–13632 Filed 6–29–17; 8:45 am]
is associated with the U.S. branch’s the FFI may report in pools consisting BILLING CODE 4830–01–P
withholding certificate as described in of one or more nonparticipating FFIs
paragraph (d)(4)(ii)(A) of this section that fall within a particular income code
and report the U.S. branch as an entity and within a particular status code DEPARTMENT OF THE TREASURY
not treated as a recipient; or described in the instructions to Form Internal Revenue Service
(3) If the U.S. branch of an FFI is not 1042–S. Alternatively, a participating
treated as a U.S. person and applies the FFI or registered deemed-compliant FFI 26 CFR Part 1
rules described in § 1.1471– (including a QI, WP, or WT) and a U.S.
4(d)(2)(iii)(C) to the extent it fails to branch of an FFI that is not treated as [TD 9819]
provide sufficient information regarding a U.S. person that applies the rules RIN 1545–BM06
its account holders or payees, the described in § 1.1471–4(d)(2)(iii)(C) may
withholding agent shall report the (and a certified deemed-compliant FFI Guidelines for the Streamlined Process
recipient of the payment as an unknown is required to) perform payee-specific of Applying for Recognition of Section
recipient to the extent recipient reporting to report a chapter 4 501(c)(3) Status
information is not provided and report reportable amount paid to a recalcitrant
the U.S. branch as provided in account holder or a nonparticipating FFI AGENCY: Internal Revenue Service (IRS),
paragraph (d)(4)(ii)(A) of this section for when withholding was applied (or Treasury.
an entity not treated as a recipient. should have applied) to the payment. ACTION: Final regulations and removal of
* * * * * (B) Special reporting requirements of temporary regulations.
(ii) * * * participating FFIs, deemed-compliant
SUMMARY: This document contains final
(C) Disregarded entities. If a U.S. FFIs, FFIs that make an election under
regulations that allow the Commissioner
withholding agent makes a payment to section 1471(b)(3), and U.S. branches of
of Internal Revenue to adopt a
a disregarded entity and receives a valid FFIs not treated as U.S. persons. Except
streamlined application process that
withholding certificate or other as otherwise provided in § 1.1471–
eligible organizations may use to apply
documentary evidence from the person 4(d)(2)(ii)(F), a participating FFI or
for recognition of tax-exempt status
that is the single owner of such deemed-compliant FFI that is an NQI,
under section 501(c)(3) of the Internal
disregarded entity, the withholding NWP, or NWT, and a U.S. branch of an
Revenue Code (Code). The final
agent must file a Form 1042–S treating FFI that is not treated as a U.S. person
regulations affect organizations seeking
the single owner as the recipient in that applies the rules described in
recognition of tax-exempt status under
accordance with the instructions to the § 1.1471–4(d)(2)(iii)(C) or an FFI that
section 501(c)(3).
Form 1042–S. has made an election under section
(iii) Reporting by participating FFIs 1471(b)(3) and has provided sufficient DATES:
and deemed-compliant FFIs (including information to its withholding agent to Effective Date: These regulations are
QIs, WPs, and WTs) and U.S. branches withhold and report the payment is not effective on June 30, 2017.
of FFIs not treated as U.S. persons—(A) required to report the payment on Form Applicability Dates: For dates of
In general. Except as otherwise 1042–S as described in paragraph applicability, see §§ 1.501(a)–1(f),
provided in paragraph (d)(4)(iii)(B) (d)(4)(iii)(A) of this section if the 1.501(c)(3)–1(h), and 1.508–1(c).
(relating to NQIs, NWPs, NWTs, and payment is made to a nonparticipating FOR FURTHER INFORMATION CONTACT:
FFIs electing under section 1471(b)(3)) FFI or recalcitrant account holder and Peter A. Holiat at (202) 317–5800 (not a
and § 1.1471–4(d)(2)(ii)(F) (relating to its withholding agent has withheld the toll-free number).
mstockstill on DSK30JT082PROD with RULES

transitional payee-specific reporting for correct amount of tax on such payment SUPPLEMENTARY INFORMATION:
payments to nonparticipating FFIs), a and correctly reported the payment on
participating FFI or deemed-compliant a Form 1042–S. Such FFI or branch is Background
FFI (including a QI, WP, or WT), and a required to report a payment, however, Since 1969, section 508 of the Code
U.S. branch of an FFI that is not treated when the FFI knows, or has reason to has required an organization seeking
as a U.S. person that applies the rules know, that less than the required tax-exempt status under section
described in § 1.1471–4(d)(2)(iii)(C) that amount has been withheld by the 501(c)(3), as a condition of its

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Document Created: 2017-06-30 06:02:04
Document Modified: 2017-06-30 06:02:04

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Correcting amendments.
Dates		These corrections are effective June 30, 2017 and are applicable beginning January 6, 2017.
Contact		Kamela Nelan at (202) 317-6942 (not a toll-free number).
FR Citation		82 FR 29728
RIN Number		1545-BL72
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

82 FR 29728 - Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities; Correction

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 82, Issue 125 (June 30, 2017)

DEPARTMENT OF THE TREASURY
Internal Revenue Service