Clarification on FAQ 6(reporting) and FAQ 3 (reporting) issued by U.S. IRS in respect of FATCA reportable accounts

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.... between the United States of America and other Model 1 jurisdictions. Both these FAQs (https://www.irs.gov/businesses/corporations/frequently-asked-questions-faqs-fatca-compliance-legal#reporting) deal with situations where the U.S. Taxpayer Identification Number (TIN) data elements in respect of U.S. reportable accounts are not reported by Reporting Financial Institutions. 2. In the context of the above, the following clarifications, inter alia, have been sought: a) Whether the FAQ 6(reporting) has overridden FAQ 3(reporting) issued earlier by U.S. IRS in respect of codes that may be used by a Reporting Financial Institution to populate the U.S. TIN data element where the U.S. TIN has not been obtained. b) Whether there may be instan....

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....request any missing TINs. The expectation is that the use of these codes will allow our tax administrations to better understand the facts and circumstances behind the missing U.S. TINs, both in general and with respect to a specific reporting Model 1 FFI. The TIN field code and related scenarios are as follows: * 222222222 - Preexisting individual account with only U.S. indicia being a U.S. place of birth. * 333333333 - New individual account that (1) has indicia of a U.S. place of birth, and (2) either: * (a) has a change in circumstances causing the self-certification originally obtained at account opening to be incorrect or unreliable, and a new self-certification has not been obtained, or * (b) was below the threshold for d....

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....entified in relation to its controlling persons. * 777777777 - For pre-existing accounts where there is no TIN available and the account has been dormant or inactive, but remains above the reporting threshold, also known as a "dormant account". For reference, the U.S. defines "dormant account" in U.S. Treasury Regulations §1.1471-4(d)(6)(ii). Note that the IRS system will still generate an error notification to indicate the entry is invalid when one of the above codes is used. The error notification will provide 120 days to correct the issues, which is consistent with Paragraph 4.2.2 "Administrative or Other Minor Errors" of the Competent Authority Arrangement. Consistent with the Intergovernmental Agreement (IGA) and Competent A....