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FATCA Certification: Are You Required to Apply?

  • Article

A Foreign Account Tax Compliance Act (FATCA) certification involves a series of questions that responsible officers of certain foreign financial institutions (FFIs) must answer and submit to the IRS to confirm compliance.

There are two general types of certifications related to: 

  1. An entity’s preexisting accounts
  2. An entity’s compliance with various FATCA requirements

In most instances, FFIs must file the periodic certification by July 1. However, if you have a Global Intermediary Information Number (GIIN), it is very possible you must file the periodic certification. 

FFIs in Model 1 IGA countries are exempt unless they are participating FFIs of an electing consolidated compliance group. FFIs in Model 2 IGA countries and participating FFIs in countries that do not have an IGA with the U.S. would be required to file the certification.

The registration system will suggest the required certifications based on the entity's FATCA classification. It's advisable for entities without certification requirements to update their classification to avoid unnecessary notices.

Doeren Mayhew’s international tax advisors offer comprehensive FATCA services, including entity classification, compliance assistance, training workshops, and individual taxpayer consultation. We’re stand ready to help you with all your FATCA needs.

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