U.S.A.: FATCA : IRS releases draft Form 8966
The U.S. Internal Revenue Service (IRS) has released a draft version of Form 8966 for use in FATCA reporting by Foreign Financial Institutions (FFIs) with reporting obligations under FATCA to report the following U.S. recipients:
- Owners of U.S. accounts;
- Substantial U.S. owners of passive Non-Financial Foreign Entities (NFFEs);
- U.S. owners of owner-documented FFIs.
However, it should be noted that the form also includes one checkbox for account holders that are non-participating FFIs and another for pooled reporting types that are non-participating FFIs.
Reporting of foreign reportable amounts paid to non-participating FFIs in 2015 and 2016 could potentially be expected to be due on Form 8966 instead of Form 1042-S.
Clarification in this regard can still be expected from the IRS, along with a final form accompanied by instructions.
We continue to monitor the implementation of FATCA and will provide more information as it becomes available.
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