Australia: Updated 2023 U.S. TIN reporting requirements under FATCA regime

Updates regarding U.S. TIN reporting requirements for FATCA purposes for calendar year 2023

Updated U.S. TIN reporting requirements for FATCA purposes for calendar year 2023

The Australian Taxation Office (ATO) on 23 January 2023, issued updates regarding U.S. tax identification number (TIN) reporting requirements for FATCA purposes for calendar year 2023.

Australian financial institutions who comply with the standards but fail to submit a U.S. TIN for a pre-existing account will not be considered non-compliant when specific requirements are adhered to.

Specifically, financial institutions with missing U.S. TIN for each reportable account are eligible for this relief if they:

  • Obtain and report the date of birth of each individual account holder and controlling person whose U.S. TIN cannot be reported
  • Request annually, beginning calendar year 2023, for any missing U.S. TIN from each account holder
  • Search annually, beginning calendar year 2023, for any missing U.S. TIN in the electronic data maintained by the Australian financial institutions
  • Report an accurate TIN code for each account missing U.S. TIN

Financial institutions reporting for calendar year 2022 can use either the TIN codes issued by the IRS in May 2021 or the updated TIN codes to be issued by the IRS in early 2023. Additionally, financial institutions need to use the latest TIN codes published by the IRS when reporting for calendar year 2023 and 2024.

KPMG observation

In order to meet the solicitation requirements, financial institutions need to use the proper methods of communication that are likely to reach each account holder, and include either:

  • The web address of the State Department’s Joint FATCA frequently asked questions (FAQs)
  • A copy of the FAQs and either a copy of the relief procedures published by the IRS for specific former citizens or the web address for such procedures

Financial institutions are also advised to retain the following documentation through the end of calendar year 2028:

  • Records of the policies and procedures adopted for the compliance requirements
  • Documentation proving the adherence to the policies and procedures

Read a January 2023 report [PDF 555 KB] prepared by the KPMG member firm in Australia

 

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