IRS Offers New Information to Banks Reporting U.S. Accounts for FATCA

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The Internal Revenue Service offered the information in a FATCA supplement to the 2014 instructions for Form 1099, updated Sept. 29. Several versions of Form 1099 are used to report various types of income; the supplement didn't specify which ones FFIs should use.

According to the IRS, a foreign financial institution is eligible for Form 1099 reporting, instead of Form 8966 reporting, if:
• it is a participating FFI or a registered deemed-compliant FFI required to report a U.S. account as a condition of registered-deemed compliant status;

• it is required to report the account as a U.S. account for purposes of Chapter 4 of the tax code; and

• the account is a U.S. account held by a specified U.S. person that the FFI elects to report under Treasury Regulations Section 1.1471-4(d)(5)(i)(A).