Daily Tax Update – September 25, 2017: IRS Issues FATCA Taxpayer Identification Number Guidance

IRS Issues FATCA Taxpayer Identification Number Guidance: Today, the IRS issued Notice 2017-46, which modifies the requirements for financial institutions to collect taxpayer identification numbers (TINs) as part of the Foreign Account Tax Compliance Act (FATCA). The notice provides that foreign financial institutions (FFIs) required to report TINs for US taxpayers’ accounts under a FATCA intergovernmental agreement will not be considered significantly noncompliant for years 2017-2019 if they are unable to provide the TIN and they (1) report the account holder’s date of birth, (2) request the missing TIN annually from the account holder, and (3) did not find the TIN after searching the FFI’s electronically searchable data.

The notice also announces the Treasury Department and the IRS’s intent to modify Treas. Reg. section 1.1441-1T(e)(2)(ii)(B) and narrow the circumstances in which US financial institutions must provide foreign TINs and dates of birth for foreign account holders. The notice delays the start date for the requirement to provide foreign TINs from January 1, 2017 to January 1, 2018.

IRS Issues Final Regulations on Gambling Winnings: Today, the Treasury Department and the IRS issued final regulations regarding information reporting and withholding with respect to gambling winnings from horse races, dog races, jai alai, and certain other gambling payments. These rules adopt, with minor modifications, the proposed regulations issued December 30, 2016.