FATCA news and updates
Account Holder United States of America Taxpayer Identification Numbers (TINs)
The Internal Revenue Service (IRS) has released Notice 2017-46, (PDF 57.3 KB)This link will download a file on the reporting of reportable pre-existing accounts where your users do not have TIN information on record. This guidance applies for the 2017, 2018 and 2019 reporting years.
The IRS advises that users will be able to continue reporting pre-existing accounts for which there is no United States TIN on file provided the following actions are carried out:
obtain and report the date of birth of each account holder and controlling person whose United States TIN is not reported
annually request any missing United States TINs from each account holder
search electronically searchable data maintained by the user for any missing required United States TINs prior to reporting information that relates to calendar years from 2017 onward.
Further instructions regarding the appropriate reporting of the TIN data element for reportable pre-existing accounts with missing TINs will follow in due course as the IRS makes them available.
If users carry out the actions above, any failure to obtain and report United States TINs will not be deemed as significant non-compliance with their obligations.
Single file limitation and extension of BDE functionality
Under the solution to be implemented on 1 January 2018, lodgment of FATCA files will be limited to a single report per file. The report should contain all of an entity's reportable accounts.
However current BDE FATCA functionality, which enables the submission of a file for more than one reporting institution, will continue until approximately December 2018.
You can receive an email alert, from the ATO, when we have new information about FATCA reporting.
Subscribe to our Bulletin by emailing firstname.lastname@example.org
IRS FATCA News and Information email
You can receive an email, from the IRS, that provides the latest IRS news, guidance and other information relating to FATCA by subscribing to the FATCA News and Information List on the IRS website.
Subscribe to the FATCA News and Information ListExternal Link
FATCA reports must be created in XML format as per the FATCA XML Schema and associated user guide available on the IRS websiteExternal Link.
From 23 December 2016 all reports, even if for prior years, must be created using V2.0 of the FATCA XML Schema.
Generally only Direct Reporting Non-Financial Foreign Entities (NFFEs) and Sponsoring Entities reporting on behalf of Sponsored Direct Reporting NFFEs are required to submit a nil report. For other entity types, if there are no reportable accounts for the year, nil reports are preferred but not mandatory. Lodging a nil report will help us monitor FATCA compliance and may reduce the need for queries.
Users can create and lodge a nil report using the FATCA XML schemaExternal Link or by sending an email to email@example.com.
The email must include:
the Global Intermediary Identification Number (GIIN) of the Reporting Financial Institution (FI) and either the ABN or TFN
the name of the Reporting FI
contact name and daytime telephone number
state that you are advising of a nil report
details of the reporting period for which this report applies.
Lodging the FATCA report
Due date for the FATCA report
FATCA reports must be lodged through the ATO Business Portals no later than 31 July each year.
The FATCA reporting period is 1 January to 31 December. The report is due to be lodged by 31 July the following year.
Applying for an extension of time
If you are unable to lodge your FATCA report by 31 July, email us to apply for an extension of time to lodge. The email should include:
the ABN or TFN and GIIN of the Reporting FI (the ABN/TFN is required as the request is recorded on the ATO system and remains active until the lodgment is received)
the name of the Reporting FI
your name and daytime telephone number
the reasons for the request
the date by which you will be able to lodge the FATCA report.
How To Lodge (follow link)
FATCA report errors
Correcting, voiding and amending reports
The following document types are used to lodge new data, corrected data, void data and amended data:
FATCA1 (new data) – New data that has not previously be processed or voided.
FATCA2 (correction) – Corrected reports are only lodged when responding to a request from ATO staff to correct specific data. This would occur where there is an IRS record-level error notification.
FATCA3 (void) – Void reports are lodged to erase previously lodged reports after a request from ATO staff in response to specific errors in the original report. Users may also void a report at any time if they become aware of inaccurate information.
FATCA4 (amendment) – Amended reports are lodged to amend a previously lodged report that is later found, by you, to contain incorrect information. If, after lodging a report, you identify that some account holders were omitted from the report, you should lodge a new original report with just those omitted accounts and account information included. Users are able to amend a record in a previously lodged report at any time. This option is NOT to be used in response to an IRS error notification.
ATO and IRS notified errors
If a FATCA report fails ATO validation at lodgment, the file must be corrected and the entire report re-lodged.
If the ATO accepts a lodgment but is later advised by the IRS there is an error in the FATCA report, the IRS will provide the ATO with an error notification. ATO staff will telephone you to advise the corrective action required and follow up with an email confirming that action.
The ‘FilerCategory’ element is mandatory and should be included in all FATCA reports for the 2016 and later reporting years.
The ‘FilerCategory’ element should be reported in the ‘ReportingFI’ element unless the user is a Sponsor, in which case the user reports the ‘FilerCategory’ in the Sponsor element. Refer to the IRS schema guidance webpageExternal Link.
The ReportingFI details should reflect the Sponsored entity details. The GIIN value of a Sponsoring Entity is the GIIN issued to the entity when it is acting in its capacity as a Sponsor. The Sponsoring Entity should use its Sponsoring Entity’s GIIN value and include the ‘FilerCategory’ field in the Sponsor element rather than the ReportingFI element.
Do not use GIIN’s obtained by financial institutions designated as a Single, Lead or Member (LE, SL, ME or BR category codes) as a GIIN value in the Sponsor Element.
Trustee Documented Trusts (TDTs)
The GIIN of a Trustee of a TDT is the GIIN it receives when registering to act as a Trustee of a TDT. The Trustee GIIN should be reported in the Sponsor element.
The TDT should be reported in the ReportingFI element and leave the GIIN field blank.
Corrected and void reports
The MessageRefId in the FATCA report has to be unique and can only ever be used once. When lodging a FATCA2 it must have its own unique MessageRefId and refer to the report that is being corrected by putting the original report’s MessageRefId in the CorrMessageRefId element of the FATCA2 report.
Similarly, each DocRefId has to be unique and can only ever be used once. When lodging a FATCA2, the CorrDocRefId elements are populated by the DocRefIds from the original report.
By Australian Government
6 Feb 2018