Instructions For Form 8966 (2015) Page 5

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Entity that performs certain due diligence, withholding,
Owner-documented FFI (ODFFI). An ODFFI is an FFI
and reporting obligations on behalf of the Sponsored FFI.
described in Regulations section 1.1471-5(f)(3).
Sponsoring Entity. A Sponsoring Entity is an entity that
Participating FFI (PFFI). A PFFI is an FFI, or branch of
has registered with the IRS to perform the due diligence,
an FFI, that has in effect an FFI agreement with the IRS,
withholding, and reporting obligations of one or more
and includes a Reporting Model 2 FFI.
Sponsored FFIs or Sponsored Direct Reporting NFFEs.
Passive NFFE. A passive NFFE is an NFFE that is not an
Substantial U.S. owner. A substantial U.S. owner is a
excepted NFFE. With respect to a Reporting Model 2 FFI
specified U.S. person described in Regulations section
filing this Form 8966 to report its accounts and payees, a
1.1473-1(b). For purposes of filing this form, a Reporting
passive NFFE is an NFFE that is not an active NFFE (as
Model 2 FFI reporting an account held by a passive NFFE
defined in the applicable Model 2 IGA).
should substitute the term “controlling person that is a
Pooled reporting. For purposes of this form, an FFI is
specified U.S. person” for “substantial U.S. owner” and
permitted to report recalcitrant account holders,
refer to the applicable Model 2 IGA for the definition of
non-consenting U.S. accounts, and certain
controlling U.S. person. A territory NFFE that is not an
nonparticipating FFIs on an aggregate basis in a reporting
excepted NFFE determines its substantial U.S. owners by
pool rather than report specific account holder
applying the 10 percent threshold in Regulations section
information. With respect to recalcitrant account holders
1.1473-1(b)(1).
and non-consenting U.S accounts, a reporting pool
Territory Financial Institution. A Territory Financial
consists of account holders that fall within a particular type
Institution is a financial institution that is incorporated or
described in Regulations section 1.1471-4(d)(6).
organized under the laws of any U.S. territory, excluding a
Qualified Intermediary (QI), Withholding Foreign
territory entity that is a financial institution only because it
Partnership (WP), Withholding Foreign Trust (WT). A
is an investment entity.
QI is a foreign entity (or foreign branch of a U.S. financial
Territory Financial Institution treated as a U.S. per-
institution) that has entered into a QI agreement with the
son. A Territory Financial Institution treated as a U.S.
IRS. A WP is a foreign partnership that has entered into a
person means a Territory Financial Institution treated as a
withholding foreign partnership agreement with the IRS. A
U.S. person under Regulations section 1.1471-3(a)(3)(iv).
WT is a foreign trust that has entered into a withholding
foreign trust agreement with the IRS.
Trustee-Documented Trust. A Trustee-Documented
Trust is a trust described as such in a Model 1 IGA or
Recalcitrant account holder. A recalcitrant account
Model 2 IGA.
holder is an account holder (other than an account holder
that is an FFI) of a PFFI or registered deemed-compliant
U.S. account. A U.S. account is any account held by one
FFI that has failed to provide the FFI maintaining its
or more specified U.S. persons. A U.S. account also
account with the information required under Regulations
includes any account held by a passive NFFE that has
section 1.1471-5(g).
one or more substantial U.S. owners, or in the case of a
Reporting Model 2 FFI, any account held by a passive
Registered deemed-compliant FFI (RDC FFI). A
NFFE that has one or more controlling persons that are
registered deemed-compliant FFI is an FFI described in
specified U.S. persons. See Regulations section
Regulations section 1.1471-5(f)(1), and includes a
1.1471-5(a) and an applicable Model 2 IGA.
Reporting Model 1 FFI, a QI branch of a U.S. financial
institution that is a Reporting Model 1 FFI, and a
U.S. branch treated as a U.S. person. A U.S. branch
nonreporting FI treated as a registered deemed-compliant
treated as a U.S. person is a U.S. branch of a PFFI,
FFI under a Model 2 IGA.
Reporting Model 1 FFI, Reporting Model 2 FFI, or RDC
FFI that is treated as a U.S. person under Regulations
Reporting Model 1 FFI. A Reporting Model 1 FFI is an
section 1.1441-1(b)(2)(iv)(A).
FI, including a foreign branch of a U.S. financial institution,
treated as a reporting financial institution under a Model 1
Withholding agent. With respect to a withholdable
IGA.
payment, a withholding agent is a person described in
Regulations section 1.1473-1(d).
Reporting Model 2 FFI. A Reporting Model 2 FFI is an FI
or branch of an FI treated as a reporting financial
Withholdable payment. A withholdable payment is a
institution under a Model 2 IGA.
payment described in Regulations section 1.1473-1(a).
Specified U.S. person. A specified U.S. person is any
Accounts and Withholdable
U.S. person described in Regulations section 1.1473-1(c).
Payments Required To Be Reported
Sponsored Direct Reporting NFFE. A Sponsored
Direct Reporting NFFE is a Direct Reporting NFFE that
Accounts to be reported. A PFFI, Reporting Model 2
has a Sponsoring Entity perform due diligence and
FFI, or RDC FFI must file a separate Form 8966 annually
reporting requirements on behalf of the Sponsored Direct
for each account required to be reported, or for each
Reporting NFFE as described in Regulations section
group of accounts for which pooled reporting is permitted,
1.1472-1(c)(5).
in accordance with the FFI agreement and Regulations
section 1.1471-4(d). Such an FFI must report with respect
Sponsored FFI. A Sponsored FFI is an FFI that is an
to accounts required to be reported that are maintained at
investment entity, a controlled foreign corporation, or a
any time during each calendar year. This includes
closely held investment vehicle that has a Sponsoring
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Instructions for Form 8966 (2015)

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