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    Reporting account holder US TINs for 2020

    If you are an Australian financial institution with reporting obligations for the Foreign Account Tax Compliance Act (FATCA), it is important you are aware of the reporting requirements relating to account holder United States of America (US) taxpayer identification numbers (TINs).

    For all reports submitted for the 2020 calendar year onwards, the US Internal Revenue Service (IRS) requires a US TIN be provided for each account holder reported.

    Failure to provide a valid TIN will result in an error notification from the IRS. The error notification is classed as an Administrative or Other Minor Error (Article 5 of the Australia/USA FATCA Intergovernmental AgreementThis link will download a file and Paragraph 4 of the Australia/USA Competent Authority Arrangement). FATCA reports with valid US TINs should be resubmitted within 120 days.

    2020–year reports without account holder US TINs

    To better understand why a Foreign Financial Institution (FFI) in a US Model 1 IGA jurisdiction may not have been able to obtain a US TIN, the IRS has developed a series of codes that may be used by an FFI to populate the TIN field in circumstances where the TIN is not available, as an alternative to using nine As (AAAAAAAAA).

    The use of these codes is optional and does not mean an FFI will not be at risk of being found significantly non-compliant due to a failure to report each required US TIN.

    The IRS will consider the facts and circumstances leading to the absence of the US TIN, such as the reasons why the TIN could not be obtained, whether the FFI has adequate procedures in place to obtain TINs, and the efforts made by the FFI to obtain TINs.

    The codes are as follows:

    • 222222222 – Pre-existing individual account with only US indicia being a US place of birth.
    • 333333333 – New individual account that (1) has indicia of a US place of birth, and (2) either:

    (a) has a change in circumstances causing the self-certification originally obtained at account opening to be incorrect or unreliable, and a new self-certification has not been obtained

    (b) was below the threshold for documenting and reporting the account at the time of account opening and subsequently exceeded the threshold, and a self-certification has not been obtained.

    • 444444444 – Pre-existing individual and entity account that (1) has US indicia other than a US. place of birth, and (2) either:

    (a) has a change in circumstances, causing the self-certification or other documentation originally obtained to be incorrect or unreliable, and a new self-certification or other documentation has not been obtained

    (b) was below the threshold for documenting and reporting the account at the time of account opening and subsequently exceeded the threshold, and a self-certification or other documentation has not been obtained.

    • 555555555 – New individual and entity account that has a US indicia other than a US place of birth, and (2) either:

    (a) has a change in circumstances causing the self-certification or other documentation originally obtained to be incorrect or
    unreliable, and a new self-certification or other documentation has not been obtained, or

    (b) was below the threshold for documenting and reporting the account at the time of account opening and subsequently exceeded the threshold, and a self-certification or other documentation has not been obtained.

    • 666666666 – Pre-existing entity account with account balance exceeding $1,000,000 held by a passive NFFE with respect to which no self-certifications have been obtained, and no US. indicia has been identified in relation to its controlling persons.
    • 777777777 – For pre-existing accounts where there is no TIN available and the account has been dormant or inactive, but remains above the reporting threshold, also known as a “dormant account”. Further information on what constitutes a "dormant account" can be found in US Treasury Regulations §1.1471-4(d)(6)(ii)External Link

    If an account holder US TIN is not known at the time of reporting, the account must be reported by supplying nine As or one of the codes above in the account holder US TIN field. Reports without the account holder US TIN field populated will not be accepted. This requirement applies for all account holder types:

    • individuals
    • organisations
    • substantial owners (controlling persons).

    Extension to the deadline for 2020 year reports

    To allow reporters more time to obtain missing TINs from account holders, and also to modify systems to enable reporting of codes, we have extended the deadline for submitting 2020 reporting year FATCA reports to 31 August 2021. This extension does not apply for the submission of CRS reports.

    We have changed the timing of our transmission of FATCA reports to the IRS. The ATO usually sends reports to the IRS as we receive them. The ATO will send 2020 reporting year reports to the IRS in September 2021.

    Reporting account holder US TINs 2017 to 2019

    The US will accept reporting of accounts without a TIN through to the 2019 reporting period, but only if strict conditions are met. One of these conditions is that a date of birth must be provided in the absence of a US TIN. For more information refer to due diligence actions.

    Due diligence actions if missing US TIN

    If the US TIN is not held for a pre-existing account holder that is an individual, reporting Australian financial institutions must comply with the required due diligence actions. These are outlined in Notice 2017-46 (PDF 57.30KB)This link will download a file and are summarised as follows.

    Reporting Australian financial institutions must:

    • obtain and report the date of birth of each account holder and controlling person whose US TIN is not reported
    • request any missing US TINs from each account holder annually
    • search electronically searchable data maintained by the reporting institution for any missing US TINs before reporting each year.

    If due diligence actions are taken the IRS will not determine that there is significant non-compliance for the calendar years 2017, 2018 and 2019.

    How to report missing US TINs

    The US requirements for missing TINs differ for the 2017 reporting year and prior years. If, after due diligence actions have been undertaken, you have not been able to obtain US TINs for your clients:

    • For the 2017 and prior year reports, you must use nine zeros (000000000) to populate the US TIN data element.
    • For the 2018 reporting year and subsequent years, you must use nine capital As (AAAAAAAAA) to populate the US TIN data element.

    Consider if your system requires changes to accommodate entering alpha type characters in the US TIN data element.

    Some other countries may not be using nine As. This may affect reporting from or for branches in other countries.

    Tax residence country for organisation account holders (2020 onwards)

    For the 2020 reporting year and onwards, you must provide the tax residence country code for all account holders that are organisations in the ResCountryCode data element. If the ResCountryCode is US, provide the TIN of the organisation account holder. If the ResCountryCode is not US, provide nine As in the TIN field.

    FATCA small reporter tool (SRT)

    We have developed a small reporter tool for FATCA reporters with up to 50 reportable individual accounts and up to 50 reportable organisation accounts.

    FATCA reporters with no reportable accounts can also use the SRT to lodge a nil report.

    The FATCA SRT allows reporters to enter information into an Excel spreadsheet and convert the data into an XML file.

    FATCA SRT users should note that a new SRT must be downloaded every year. If preparing reports for more than one financial institution in a year, a new, separate SRT must be downloaded for each report. If this is not done, then additional reports created with the single SRT will be generated with duplicate MessageRefID’s and DocRefID’s. Files received with duplicate MessageRefID’s and DocRefID’s will create errors when received by the ATO.

    Next step:

    Providing your Australian business number (ABN)

    The identifier to be used by a reporting financial institution (FI) or sponsor is the global intermediary identification number (GIIN) it received from the US Internal Revenue Service (IRS) at registration. The GIIN is supplied at the reporting FI and sponsor (if a sponsor is reporting) taxpayer identification number (TIN) elements.

    We recommend a reporting FI and sponsor supplies their ABN in addition to their GIIN. The IRS issued Reporting FI TIN element is mandatory and should always be included in your report (trustee documented trusts are excluded – see below).

    Supplying your ABN helps us to record your lodgment and reduces the need for us to contact you.

    Example

    <ns2:ReportingFI>

    <ResCountryCode>AU</ResCountryCode>

    <TIN issuedBy="US">xxxxxx.xxxxx.xx.xxx</TIN>

    <TIN issuedBy="AU">(Insert ABN here)</TIN>

    <Name>XXXXXX</</Name>

    <Address>

     

    <ns2:Sponsor>

    <ResCountryCode>AU</ResCountryCode>

    <TIN issuedBy="US">xxxxxx.xxxxx.SP.xxx</TIN>

    <TIN issuedBy="AU">(Insert ABN here)</TIN>

    <Name>XXXXXX</</Name>

    <Address>

    End of example

    Reporting sponsor GIIN correctly

    The global intermediary identification number (GIIN) value of a sponsoring entity is the GIIN issued to the entity when it is acting in its capacity as a sponsor. Sponsors have 'SP' in their GIIN in the following format: xxxxxx.xxxxx.SP.xxx

    If you have more than one GIIN, ensure they are provided correctly.

    Ensure the sponsor GIIN appears in the Sponsor element. The ReportingFI GIIN should appear at the ReportingFI TIN element. The ReportingFI TIN is the GIIN issued to the entity when it registers as a ReportingFI.

    Trustee documented trusts (TDTs)

    When reporting for trustee documented trusts (TDTs), the trustee is reporting on behalf of the trust and is therefore required to register and obtain a GIIN. The trust itself is not required to obtain a GIIN.

    The trustee GIIN is reported in the Sponsor data element. The trustee’s GIIN should not be reported in the ReportingFI element.

    The details of the trust are reported in the ReportingFI element.

    For TDTs, the IRS FATCA XML User Guide (PDF 1.15MB)This link will download a file advises to leave the ReportingFI TIN field 'blank'. This means the TIN field in the ReportingFI element should be removed completely.

    In the Small Reporter Tool (SRT), the TIN cell is left blank – refer to the SRT guide.

    Note also that:

    • the sponsor element must be present and completed
    • DocRefIds should all begin with the Sponsor GIIN
    • the sponsor FilerCategory code must be ‘FATCA609’.

    See also:

    Consider when to archive your reports

    FATCA reports received from Australian reporters are normally passed on to the US IRS immediately after lodgment. If the IRS advises of any errors requiring correction, we contact reporters to fix the errors.

    For 2020 reporting year reports, the ATO will send reports in September 2021.

    Consider the timing for archiving your FATCA reports to enable any necessary corrections.

    Wrapper headers

    From 1 January 2019, all FATCA reports must be lodged with wrapper header information.

    See also:

    Single file limitation

    Under the system implemented on 1 January 2018, the lodgment of FATCA files allows only a single report per file. That report should contain all an entity's reportable accounts.

    The bulk data exchange (BDE) FATCA functionality which enabled the submission of a file for more than one reporting institution was decommissioned in December 2018.

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    Last modified: 19 Apr 2021QC 56992