Instructions For Form 8966 (2015) printable pdf download

2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 8966

FATCA Report

Section references are to the Internal Revenue Code

owner-documented FFIs (ODFFI), and certain aggregate

unless otherwise noted.

information concerning accounts held by recalcitrant

account holders and, for a transitional period, certain

Future Developments

payments made to accounts held by nonparticipating

For the latest information about developments related to

FFIs. An FFI may also be excepted from chapter 4

Form 8966 or its instructions such as legislation enacted

withholding if it is deemed to comply with the provisions of

after they were published, go to

section 1471(b) under Regulations section 1.1471-5(f) or

is otherwise exempt from withholding if it is an exempt

beneficial owner for chapter 4 purposes under

Regulations section 1.1471-6. Chapter 4 also requires a

General Instructions

withholding agent to deduct and withhold tax equal to 30

What's New

percent of a withholdable payment made to a passive

non-financial foreign entity (NFFE) unless the passive

New lines and check boxes. New lines and check

NFFE certifies to the withholding agent that it does not

boxes are added for 2015.

have any substantial U.S. owners or provides certain

At the beginning of Form 8966, a box is added for the

identifying information with respect to its substantial U.S.

filer to check if it has no accounts to report. This box is

owners. A withholding agent is also required to report

optional for filers other than Direct Reporting NFFEs and

information about substantial U.S. owners of a passive

Sponsoring Entities filing on behalf of a Sponsored Direct

NFFE and specified U.S. persons holding certain equity or

Reporting NFFE.

debt interests in a payee that the withholding agent has

agreed to treat as an ODFFI.

Part I, line 1b, requests the filer's two-digit category

code, and Part I, line 1a, is renumbered. See the specific

To facilitate FATCA implementation for FFIs operating

instructions for this new Part I, line 1b for the code to

in jurisdictions with laws that would prevent the FFIs from

enter.

complying with the terms of the FFI agreement, the

Note. This line is required to be completed only if the filer

Treasury Department developed two alternative model

is a Direct Reporting NFFE or a Sponsoring Entity filing on

intergovernmental agreements (IGAs) (Model 1 IGA and

behalf of a Sponsored Direct Reporting NFFE. Otherwise,

Model 2 IGA) that would allow FFIs operating in such

completing this line is optional.

jurisdictions to perform due diligence and reporting on

In Part II, line 1b, the filer should check the appropriate

their account holders to achieve the objectives of FATCA.

box to indicate whether the account holder or payee is an

FFIs reporting under a Model 1 IGA (Reporting Model 1

individual or entity, and Part II, line 1a, is renumbered.

FFIs) report certain information about their U.S. reportable

In Part II, line 5, the check box for Direct Reporting

accounts and certain payees as required under the

NFFE is removed. A filer that is a Direct Reporting NFFE

applicable IGA to their respective tax authorities.

or Sponsoring Entity filing on behalf of a Direct Reporting

Reporting Model 1 FFIs do not file Form 8966 directly to

NFFE should enter the applicable filer category code at

the IRS. FFIs reporting under a Model 2 IGA (Reporting

the top of the form.

Model 2 FFIs) report directly to the IRS on Form 8966

In Part IV, line 3b, a check box is added for accounts

certain information about their U.S. accounts, and certain

closed during the year, and Part IV, line 3a is renumbered.

aggregate information concerning account holders who

Note. New Part IV, line 3b is completed only by filers that

do not waive legal restrictions for the FFI to report this

are FFIs and is optional for 2015.

information (non-consenting U.S. accounts), and, for a

Summary of Chapter 4 and Related

transitional period, certain payments made to accounts

held by nonparticipating FFIs as required under the

Matters

applicable IGA and the Regulations. Trustee-Documented

Trusts subject to a Model 2 IGA are reported by the

Under chapter 4 of the Internal Revenue Code (Code)

trustee of the Trustee-Documented Trust.

(sections 1471–1474 and Treasury Regulations

(Regulations) under those sections, commonly referred to

Purpose of Form

as the Foreign Account Tax Compliance Act or FATCA), a

Form 8966 is required to be filed by filers listed under

withholding agent is generally required to deduct and

“Who Must File,” later, to report information with respect to

withhold tax equal to 30 percent of a withholdable

certain U.S. accounts, substantial U.S. owners of passive

payment made to a foreign financial institution (FFI)

NFFEs, specified U.S. persons that own certain debt or

unless the FFI has entered into an FFI agreement with the

equity interests in ODFFIs, and certain other accounts as

IRS to be treated as a participating FFI (PFFI). Pursuant to

applicable based on the filer’s chapter 4 status. For

the FFI agreement, a PFFI agrees to satisfy, among other

calendar years 2015 and 2016, Form 8966 is also filed by

things, certain reporting obligations for each calendar year

PFFIs, registered deemed-compliant (RDC) FFIs, and

concerning its U.S. accounts, accounts held by

Dec 24, 2015

Cat. No. 59612Q

Instructions For Form 8966 (2015)

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