What is the Foreign Account Tax Compliance Act Timeline?

2013:
• January 1 – Effective date for FATCA.
• August 19 – IRS’s Registration Portal available.

2014:
• January 1 – Each financial institution expected to finalize its registration information by logging onto the FATCA registration website, making necessary changes and submitting as final.
– GIINs will begin to be issued as registrations are finalized. Reporting Model 1 FFIs will be able to register and obtain GIINs beginning on Jan. 1, 2014 to ensure they are included in the IRS FFI list before January 1, 2015.
• April 25 – To be included in the June 2014 IRS FFI list, FFI’s need to finalize their registration by this date.
• June 2 – IRS will electronically post the first IRS FFI list and will update on a monthly basis.
• June 30 – U.S. Withholding Agents, Participating FFIs, and Registered Deemed-Compliant FFIs must document preexisting entity accounts identified as Prima Facie FFIs. If the FFI signed an agreement after January 1, 2014, the deadline is six months from the effective date of the FFI agreement.
• June 30 – Withholding begins on payments made after this date to payees that are FFIs and NFFEs with respect to obligations that are grandfathered obligations, unless the payments can be reliably associated with documentation on which the withholding agent can rely to treat the payments as exempt from withholding.
• June 30 – FFI agreement of a PFFI that registers and receives a GIIN from the IRS on or before June 30, 2014 will have an effective date of June 30, 2014.
• July 1 – Begin FATCA withholding on preexisting entity account holder that are undocumented Prima Facie FFIs.
• July 1 – Grandfathered obligations includes obligations outstanding on July 1, 2014 and associated collateral.
• July 1 – Withholding agent generally required to implement new account opening procedures (or for PFFIs by the later of July 1, 2014 or the effective date of its FFI agreement).
• December 31 – Participating FFIs must document preexisting high value individual accounts by December 31, 2014. If the FFI signed an agreement after January 1, 2014, the deadline is one year from the effective date of the FFI agreement.

2015
• January 1 – Begin FATCA withholding on undocumented individual preexisting high value accounts.
• March 15 – Form 1042-S reporting on income payments made in 2014 begins.
• March 31 – U.S. withholding agents begin Form 8966 U.S. Owner reporting
• March 31 – FFIs begin Form 8966 U.S. Account information and balance reporting (with respect to the 2013 and 2014 calendar years). Note, Notice 2013-43 states that the IRS and Treasury intend to modify this reporting to include only calendar year 2014 for US accounts identified by December 31, 2014.
• March 31 – Begin aggregate FATCA reporting for recalcitrant accounts on Form 8966, FATCA Report.
• December 31 – U.S. Withholding Agents, Participating FFIs, and Registered Deemed-Compliant FFIs must document preexisting entity accounts not identified as Prima Facie FFIs. If the FFI signed an agreement after January 1, 2014, the deadline is two years from the effective date of the FFI agreement
• December 31 – Participating FFIs must document all remaining preexisting non-high value individual accounts by December 31, 2015. If the FFI signed an agreement after January 1, 2014, the deadline is two years from the effective date of the FFI agreement.

2016
• January 1 – Deadline for limited FFIs or limited branches (due to local regulations prohibiting FATCA compliance) to become participating FFIs and avoid other participating FFIs within the expanded affiliated group from losing their participating FFI status
• January 1 – Begin FATCA withholding on remaining undocumented preexisting accounts.
• March 15 – FFI begin temporary Form 1042-S aggregate reporting on payments made to non-participating FFIs during calendar year 2015.
• March 31 – Form 8966 reporting on U.S. Account income by participating FFIs begins in addition to account information and balance for the 2015 calendar year.
• December 31 – End of first compliance certification period.
• December 31 – Deadline for qualification as Limited Life Debt Investment Entity.

2017:
• January 1 – FATCA withholding on gross proceeds payments to non-participating FFIs and recalcitrant payees begins.
• January 1 – FATCA withholding begins on foreign pass-through payments.
• March 15 – Last year for FFI temporary Form 1042-S aggregate reporting on payments made to non-participating FFIs (with respect to 2016 calendar year).
• March 31 – Form 8966 reporting on U.S. account gross proceeds by participating FFIs begins in addition to account information, balance, and income for calendar year 2016.
• March 31 – Begin full FATCA reporting on Form 8966 for calendar year 2016.

2018:
• March 15 – Begin Form 1042-S reporting on gross proceed payments for calendar year 2017.

Please contact the Wilson Tax Law Group at (949) 397-2292 if you should have any questions or concerns about the withholding timeline.