September 17, 2013: IRS Publishes New FAQs for FATCA Registration Website
Foreign Account Tax Compliance Act (FATCA)
IRS Publishes New FAQs for FATCA Registration Website
The IRS has published additional guidance for the recently opened FATCA Registration Website. The IRS posted two separate FAQs; one for general FATCA Registration guidance including IGA issues and the other geared towards qualified intermediaries. Two FAQs in particular help clarify certain registration concepts that were not immediately obvious under existing guidance.
First, although the FATCA Registration Manual ("Manual") allows for an expanded affiliated group (EAG) to have multiple Lead FIs (essentially allowing the group to segment their EAG for registration purposes based on convenience), the Manual was not clear on whether member FIs can sign up separately without a Lead FI. FAQ number 13 (see below) makes it clear that an FFI that is a member of an EAG cannot create its own FFI registration account without first having a Lead FI log in and add the member into the Lead FI's group. Once the Lead FI registers and adds its member FIs, it will receive a FATCA ID and temporary passcode to provide its member FIs for registration.
|Q13||Can a member of an Expanded Affiliated Group (EAG) create their own FATCA account?||A Member Financial Institution (FI) cannot create its own FATCA account. The Lead FI will create all their member accounts and provide each member FI with its login credentials. The member will then log into its account and complete its registration.|
Second, FAQ 21 notes that Lead FIs will have access to member FI accounts without having to log into each member FI's account separately. However, only one person can be logged into an account at any given time. This access will help Lead FIs better manage the registration status and updates for its EAG (or for the EAG members signed up under it for groups that split the registration and have multiple Lead FIs).
Additionally, FAQ number 9 notes that there is a bug in the website that occurs with EAG groups with over 50 member FIs. For these groups, the PDF printout containing the log-in information for the members FIs will not show member FIs past the first 50. The FAQ asks the Lead FI to keep track of the information separately as they are listed on the website until the issue is fixed.
The IRS FAQs for the FATCA Registration Website including IGA issues can be accessed here. The qualified intermediary specific FAQs can be accessed here. Full article and copies of both IRS FAQs are available for download. For more information please contact a Deloitte FATCA Leader or click here.
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