Instructions For Form 8966 (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
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
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


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