Global Tax Alert | 3 January 2014

US IRS issues final FFI Agreement

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On 26 December 2013, the IRS released Revenue Procedure 2014-13 (initially 2014-10), which contains the final version of the Foreign Financial Institution Agreement (FFIA). The revenue procedure is applicable to foreign financial institutions (FFIs) entering into FFI agreements with the IRS to be treated as participating FFIs for FATCA purposes, including Reporting FFIs in Model 2 IGA countries (e.g., Switzerland and Japan). As a reminder, Reporting FFIs in Model 1 IGA countries are not required to enter into FFIAs.

The revenue procedure includes additions, deletions, corrections and clarifications to the draft FFI agreement, and notes that two sets of temporary regulations are expected be issued in early 2014.

  • Temporary FATCA regulations. One set of temporary regulations will provide clarifications and modifications to the final chapter 4 regulations.
  • Temporary coordinating regulations. The second set of temporary regulations will provide coordinating rules under chapters 3 (Section 1441 reporting and withholding on payments to non-US persons), chapter 4 (FATCA), and chapter 61 (reporting and withholding on payments to US persons).

The revenue procedure, effective 1 January 2014, will be published in the I.R.B. on 13 January 2014.

For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP, Washington, DC
  • Barbara M. Angus
    +1 202 327 5824
    barbara.angus@ey.com
  • Lilo Hester
    +1 202 327 5764
    lilo.hester@ey.com
  • Margaret O’Connor
    +1 202 327 6229
    margaret.oconnor@ey.com
  • Deborah Pflieger
    +1 202 327 5791
    deborah.pflieger@ey.com
  • Maria Murphy
    +1 202 327 6059
    maria.murphy@ey.com
  • George G. Fox
    +1 202 327 5621
    george.fox@ey.com
Ernst & Young LLP, New York
  • Terence Cardew
    +1 212 773 3628
    terence.cardew@ey.com
  • Justin O’Brien
    +1 212 773 4767
    justin.obrien@ey.com
  • Faye M. Polayes
    +1 212 773 7287
    faye.polayes@ey.com
  • Douglas M. Sawyer
    +1 212 773 8707
    douglas.sawyer@ey.com
Ernst & Young LLP, Boston
  • Matt Blum
    +1 617 585 0340
    matt.blum@ey.com
  • Ann Fisher
    +1 617 585 0396
    ann.fisher@ey.com
  • Dawn McGuire
    +1 617 375 3737
    dawn.mcguire@ey.com
Ernst & Young LLP, Chicago
  • Anthony Calabrese
    +1 312 879 2000
    anthony.calabrese@ey.com

EYG no. CM4077