Daily Tax Update - September 25, 2014: IRS Updates FATCA FAQs on IGAs

IRS Updates FATCA FAQs on IGAs:  The IRS added two items to its website of FATCA questions and answers earlier today.  In the section dealing with IGA registration, the IRS added Question 7, which addresses the instances in which an entity in a jurisdiction subject to a Model 1 intergovernmental agreement (IGA) that qualifies as a deemed-compliant foreign financial institution (FFI) under the IGA or as an exempt beneficial owner under relevant US Treasury Regulations must register on the FATCA registration website.  Additionally, the IRS added Question 8 to the section dealing with general compliance, which addresses what would be considered a “similar agreed form” for purposes of self-certification under Annex I of an IGA.   

The updated FATCA FAQs can be accessed here.  

IRS Releases Draft Form 1099 Instructions to Reflect New FATCA Requirements:  The IRS has released new draft instructions for Form 1099-DIV, Form 1099-INT, Form 1099-OID, and Form 1099-MISC to reflect new requirements under FATCA.  The instructions for all four forms refer to a new check box that has been added for FFIs filing the forms to satisfy chapter 4 reporting requirements.   

The draft instructions for Form 1099-DIV can be accessed here

The combined draft instructions for Forms 1099-INT and 1099-OID can be accessed here

The draft instructions for Form 1099-MISC can be accessed here.