United States: IRS Offers FATCA Relief, Extending Registration Deadline And Expanding Intergovernmental Agreement List

On April 2, 2014, the U.S. Internal Revenue Service (IRS) issued Announcement 2014-17 (the Announcement), which provides certain FATCA relief.1  The Announcement extends from April 25, 2014 to May 5, 2014 the deadline by which an FFI must register with the IRS in order to appear on the first public list of "Global Intermediary Identification Numbers" (GIINs) maintained by the IRS, also known as the "FFI List."  A GIIN is an identification number that will be assigned by the IRS to an FFI upon registration. The Announcement also expands the list of jurisdictions with intergovernmental agreements (IGAs) considered effective (Effective IGA List) by including jurisdictions with IGAs that have been agreed in substance, even if an IGA has not yet been signed.

Extension of First Registration Deadline

Treasury Regulations under FATCA generally provide that, in order for withholding under FATCA not to apply for certain payments made after June 30, 2014, a withholding agent must obtain a GIIN and confirm that the GIIN appears on the FFI List.2  Prior guidance from the IRS indicated that an FFI had to register with the IRS by April 25, 2014 in order to ensure inclusion on the first FFI List.3

Under the Announcement, the deadline by which an FFI must register in order to appear on the first FFI List (to be published on June 2, 2014) is extended to May 5, 2014. Further, FFIs that register by June 3, 2014 will be included on the second FFI List to be published on July 1, 2014.

The Announcement points out that FFIs finalizing registration after these dates may still be included on the first or second FFI Lists, as applicable, but the IRS cannot provide assurance that this will be the case.

Expansion of Effective IGA List

In order to register for a GIIN for an FFI that is subject to an IGA, the IGA must be effective as of the registration date. With the first registration deadline approaching, concern had arisen that entities in jurisdictions engaged in discussions with the United States regarding IGAs, but which had not yet signed IGAs, would face uncertainty regarding their status for registration purposes. In order to address this concern, the Announcement provides that a jurisdiction that, prior to July 1, 2014, has reached an agreement in substance with the United States on the terms of an IGA and has consented to be included on the list will be included on the Effective IGA List, even if that IGA has not yet been signed.4

  • These jurisdictions will be treated as having an IGA in effect from the date the jurisdiction consents to inclusion on the Effective IGA List (or April 2, 2014, if later) until December 31, 2014, the date by which the IGA must be signed in order for its effective status to continue without interruption.
  • Jurisdictions that reach agreements in substance on or after July 1, 2014 will not be included in the Effective IGA List until an IGA is signed.
  • The Effective IGA List will specify whether the relevant IGA will follow Model 1 or Model 2, but will have no further information regarding the specific details of the IGA discussions, and the jurisdiction will be treated as having the relevant model provisions in effect.
  • As of the date of the Announcement, jurisdictions that will be treated as having Model 1 IGAs in effect include Australia, Belgium, Brazil, the British Virgin Islands, Croatia, the Czech Republic, Estonia, Gibraltar, Jamaica, Kosovo, Latvia, Liechtenstein, Lithuania, New Zealand, Poland, Portugal, Qatar, Slovenia, South Africa, South Korea and Romania. As of the date of the Announcement, Austria is the only jurisdiction that will be treated as having a Model 2 IGA in effect.
  • A jurisdiction may be removed from the Effective IGA List if Treasury determines that such jurisdiction is not taking the steps necessary to bring the IGA into force within a reasonable period of time, although the Announcement does not describe how this determination might be made. As it is not explicit in the Announcement, it is unclear whether this provision also applies to jurisdictions that have signed IGAs, but have not yet taken steps to bring the IGAs into force (e.g., formal ratification steps through the IGA partner jurisdiction's legislative processes).

The Announcement is generally favorable, as it expands the number of jurisdictions on the Effective IGA List to include a number of additional G20 countries and other U.S. trading and investment partners, and as such is a welcome development. However, there continue to be important questions about the implementation of FATCA in jurisdictions with IGAs, which may or may not be addressed in future guidance.


1. "FATCA" is the common name for the withholding and information reporting regime codified at Sections 1471-1474 of the U.S Internal Revenue Code of 1986, as amended. FATCA generally requires foreign financial institutions (FFIs) and certain other foreign entities to undertake diligence to identify U.S. accounts, and report certain information to the IRS with respect to such U.S. accounts, or suffer 30% U.S. withholding on certain U.S. source "withholdable payments" and on foreign "passthru" payments that such foreign entities receive. An IGA is an agreement entered into by the United States and another jurisdiction that provides for an alternative method of implementing FATCA.

Please see our previous client alerts, including " FATCA Deadlines Extended" (July 15, 2013), " U.S. Tax Authorities Issue Final FATCA Regulations" (January 25, 2013), and " IRS Announces Extended FATCA Deadlines" (October 25, 2012).

2. Pursuant to a special rule, a withholding agent does not need to obtain a GIIN from a "Model 1 FFI" for payments made before January 1, 2015. Two types of model IGAs have been released by the IRS and the Treasury Department: Model 1 and Model 2. A Model 1 FFI is an FFI in a jurisdiction with a Model 1 IGA in effect.

3. See Notice 2013-43 and Announcement 2014-1, 2014-2 I.R.B. 393.

4. The current list of jurisdictions that are treated as having an IGA in effect is available at the following address: http://www.treasury.gov/resource-center/tax-policy/treaties/Pages/FATCA-Archive.aspx

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Proskauer Rose LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Proskauer Rose LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions