Hungary: Updated FATCA filing instructions incorporating default codes for U.S. TINs
Hungary issued an updated version of the FATCA filing instructions
Hungary issued an updated version of the FATCA filing instructions
An updated version of the FATCA filing instructions includes the addition of a series of codes developed by the U.S. tax agency (IRS) that can be used by reporting financial institutions when the account is missing U.S. tax identification numbers (TINs). Read TaxNewsFlash
The codes can only be used if the financial institution can justify the reason for the missing TIN to the IRS, it can prove that it has done everything in its power to obtain the TIN, and it has an appropriate procedure in place to obtain the TIN.
The IRS system will generate an error notification to indicate that the entry is invalid if incorrect codes (including the codes mentioned above) are used. Financial institutions will have 120 days to correct this error after which the IRS will report significant non-compliance. However, the absence of a TIN does not automatically mean significant non-compliance. The IRS will take into consideration all the facts and circumstances which led to the absence of a U.S. TIN, such as whether the financial institution has adequate procedures in place to obtain the U.S. TIN and the efforts taken by the financial institution to obtain the TIN.
If a financial institution is determined to be significantly non-compliant, it will have at least 18 months from the date of receipt of notice to correct the errors related to the TIN before the IRS takes further steps, such as removing the financial institution’s global intermediary identification number from the IRS list.
Read an August 2022 report [PDF 190 KB] prepared by the KPMG member firm in Hungary
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