IRS Opens Online Registration for FATCA

The Internal Revenue Service (IRS) launched an online registration system Monday for foreign financial institutions (FFIs) required to create accounts as per the Foreign Account Tax Compliance Act (FATCA).

While the initial implementation dates for FATCA were pushed back, the launch is consistent with the IRS’s modified timeline and other compliance dates are on target. From now until the end of the year, institutions will be able to set up and modify their accounts, which gives FFIs time to familiarize themselves with the system before finalizing their information in the first half of 2014.

After registering, the IRS will issue Global Intermediary Identification Numbers (GIINs) financial institutions, and the agency will publish the first FFI list on June 2, 2014. FFIs need to finalize their registrations by April 25, 2014 in order to be included on the first list, but they have until June 30, 2014 to register in order to be compliant with FATCA. After that date, FFIs without GIINs face a 30% withholding tax on U.S. source income.

Additional information regarding FATCA can be found on the IRS website, including online registration tips. “Financial Institutions are strongly encouraged to use the online registration process,” the agency says in a document explaining the system. However, the IRS will accept paper submissions (Form 8957) as long as they receive the forms after January 1, 2014.