skip navigation
Search Help
Navigation Help

Tax Map Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

International
Tax Topic Index

Affordable Care Act
Tax Topic Index

FAQs
Forms
Publications
Tax Topics

Comments
About Tax Map

IRS.gov Website
taxmap/instr2/i8966-000.htm#en_us_publink27980nd0e7

Instructions for Form 8966

rule

FATCA Report


2014
 taxmap/instr2/i8966-000.htm#en_us_publink27980nd0e36

taxmap/instr2/i8966-000.htm#TXMP7da71949
Future Developments(p1)

rule
For the latest information about developments related to Form 8966 or its instructions such as legislation enacted after they were published, go to
www.irs.gov/form8966.
taxmap/instr2/i8966-000.htm#en_us_publink10005174

taxmap/instr2/i8966-000.htm#TXMP0dc6b313
General Instructions(p1)

rule
taxmap/instr2/i8966-000.htm#en_us_publink10005175

taxmap/instr2/i8966-000.htm#TXMP2f584229
What's New(p1)

rule
taxmap/instr2/i8966-000.htm#en_us_publink10005176
taxmap/instr2/i8966-000.htm#TXMP79350ab9
Summary of Chapter 4 and Related Matter. (p1)
rule
Under chapter 4 of the Internal Revenue Code (Code) (sections 1471-1474 and Treasury Regulations (Regulations) under those sections, commonly referred to as the Foreign Account Tax Compliance Act or FATCA), a withholding agent is generally required to deduct and withhold tax equal to 30 percent of a withholdable payment made to a foreign financial institution (FFI) unless the FFI has entered into an FFI agreement with the IRS to be treated as a participating FFI (PFFI). Pursuant to the FFI agreement, a PFFI agrees to satisfy, among other things, certain reporting obligations for each calendar year concerning its U.S. accounts, accounts held by owner-documented FFIs (ODFFI), and certain aggregate information concerning accounts held by recalcitrant account holders and, for a transitional period, accounts held by nonparticipating FFIs. An FFI may also be excepted from chapter 4 withholding if it is deemed to comply with the provisions of section 1471(b). See Regulations sections 1.1471-5(f)(1) and 1.1471-6. Chapter 4 also requires a withholding agent to deduct and withhold tax equal to 30 percent of a withholdable payment made to a passive non-financial foreign entity (NFFE) unless the passive NFFE certifies to the withholding agent that it does not have any substantial U.S. owners or provides certain identifying information with respect to its substantial U.S. owners. A withholding agent is also required to report information about substantial U.S. owners of a passive NFFE and specified U.S. persons holding certain equity and debt interests in a payee that the withholding agent has agreed to treat as an ODFFI. The withholding and other requirements of chapter 4 begin on July 1, 2014.
To facilitate FATCA implementation for FFIs operating in jurisdictions with laws that would prevent the FFIs from complying with the terms of the FFI agreement, the Treasury Department developed two alternative model intergovernmental agreements (IGAs) (Model 1 IGA and Model 2 IGA) that would allow FFIs operating in such jurisdictions to perform due diligence and reporting on their account holders to achieve the objectives of FATCA. FFIs reporting under a Model 1 IGA (Reporting Model 1 FFIs) report certain information about their U.S. reportable accounts and certain payees as required under the applicable IGA to their respective tax authorities. Reporting Model 1 FFIs do not file Form 8966 directly to the IRS. FFIs reporting under a Model 2 IGA (Reporting Model 2 FFIs) report directly to the IRS on Form 8966 certain information about their U.S. accounts, accounts held by owner-documented FFIs (and Trustee- Documented Trusts), and certain aggregate information concerning account holders who do not waive legal restrictions for the FFI to report this information (non-consenting U.S. accounts), and, for a transitional period, accounts held by nonparticipating FFIs as required under the applicable IGA and the Regulations.