This blog was last updated on June 26, 2021
The IRS has published additional Frequently Asked Questions that address general compliance issues related to FATCA obligations. Specifically, the FAQs touch upon Foreign TIN and Date of Birth requirements. A withholding agent must obtain a foreign TIN for:
• A foreign person claiming a reduced rate of withholding under an income tax treaty if
there is no U.S. TIN and the income type requires a TIN.
• A foreign holder of an account maintained at a U.S. branch or office of the withholding agent Financial Institution.
For calendar year 2017, a withholding agent is not required to treat an otherwise valid beneficial owner withholding certificate as invalid for lack of a foreign TIN – unless the agent has knowledge of its existence. For certificates obtained on or after 1/1/2017, withholding agent must collect a date of birth for an individual beneficial owner unless it was previously collected in other paperwork.
Where a foreign TIN is not included on an otherwise valid beneficial owner withholding certificate, a withholding agent may obtain it on a written statement by the owner indicating that the foreign TIN is to be associated with the certificate.
