On 28 October 2024, the IRS published Notice 2024-78: Extension of Temporary Relief for Foreign Financial Institutions (“FFIs”) Required to Report US Tax Identification Numbers (“TINs”). This Notice extends for calendar years 2025, 2026 and 2027, the temporary relief provided in Notice 2023-11 for certain FFIs (including Irish FFIs) required to report US TINs for Pre-Existing Accounts, under a Model I Intergovernmental Agreement (“IGA”). Kevin Cohen of our FATCA team explains below.
The IRS will not determine that there is significant non-compliance by a Reporting Model I FFI (which could ultimately lead to the FFI being subject to 30% FATCA withholding tax on certain US source income) solely due to a failure to obtain and report each US TIN with respect to a Pre-Existing Account for the 2025, 2026 and 2027 calendar years, provided that the conditions set out in the Notice are met.
In particular, a Reporting Model I FFI must be resident in an eligible Model I IGA jurisdiction (as defined) and for each US Reportable Account (both Pre-Existing and New Accounts – notwithstanding that the relief only applies for Pre-Existing Accounts) with a missing US TIN, the Reporting Model I FFI must continue to:
- Obtain and report the date of birth of each Account Holder that is an Individual and Controlling Person whose US TIN is not reported;
- Annually request from each Account Holder any missing US TIN (in the prescribed format);
- Annually search electronically searchable data maintained by the Reporting Model I FFI for any missing US TINs; and
- Report an accurate TIN Code (see IRS Reporting FAQ #6) for each account that is missing a US TIN.
The above four conditions are currently required under the Temporary Relief available for the 2022, 2023 and 2024 calendar years (as per Notice 2023-11). However, in addition to the above, to qualify for the Temporary Relief available for the 2025, 2026 and 2027 calendar years, the Reporting Model I FFI must:
- For each Specified US Person that is missing a US TIN, report the foreign (i.e. non-US) TIN (or functional equivalent) which has been assigned to the taxpayer by their country of tax residence, if such data is contained in the FFI’s electronically searchable account information; and
- Report the “City” and “Country” of Residence for each Specified US Person that is missing a US TIN.
The Irish Revenue Commissioners have not yet published any Irish specific guidance in relation to Notice 2024-78.
Please click here to read further details regarding the requirements prescribed in the Notice and other FATCA/CRS related developments since our previous alert.
Should you require any assistance with meeting your FATCA and CRS obligations, please contact a member of our AEOI team.
Get in touch
Should you require any assistance with meeting your FATCA and CRS obligations please contact Kevin Cohen of our FATCA team.
We'd be delighted to hear from you.
Kevin Cohen
Partner
KPMG in Ireland