The address to be reported with respect to an account held by a Specified US Person is the residence address recorded by the Reporting Financial Institution for the account holder or, if no residence address is associated with the account holder, the address for the account used for mailing or other purposes by the Reporting Financial Institution.
In the case of Controlling Persons of a Passive NFFE, the address required will be the address of each Controlling Person who is reportable.
Taxpayer Identification Numbers (TINs)
Where it has been established that an account holder is a US
Person a Financial Institution is required to obtain a US TIN in several instances. When referred to, a US TIN means a US Federal Taxpayer Identification Number.For Pre-existing Individual Accounts that are Reportable Accounts then a US TIN need only be provided if it exists in the records of the Reporting Financial Institution. In the absence of a record of the US TIN, a date of birth should be provided, but again only where it is held by the Reporting Financial Institution.
In line with the Agreement, HMRC has introduced legislation to require Reporting Financial Institutions to obtain the US TIN for relevant
Pre-existing Individual Accounts from the 1 January 2017.For all New Individual Accounts that are identified as Reportable Accounts from 1 July 2014 onwards, the Reporting Institution must obtain a self certification from account holders identified as resident in the US that includes a US TIN. This self certification could be on, for example, IRS forms W-9 or on an other similar agreed form.
Where for a New Individual Account the proposed account holder fails to provide a US TIN or evidence of non-US status and the account becomes active, the account is to be treated as reportable.
There is no requirement for a Financial Institution to verify that any US TIN provided is correct. A Financial Institution will not be held accountable where information supplied by an individual proves to be inaccurate, and the Financial Institution had no reason to know.
The account number to be reported on an account is the identifying number assigned to the account or other number that is used to identify the account within the Financial Institution.
Account balance or value
The account balance or value of an account may be reported in US dollars or the currency in which the account is denominated.
The balance or value will be that shown on the 31 December, unless the account is closed on a date before that.
For a reportable Depository Account, the balance or value to be reported will be the balance or value as of the 31 December 2014. This will be reported in 2015.
Other Financial Accounts
The balance or value will either be that shown on 31 December of the year to be reported or where it is not possible to, or usual to value an account at 31 December, the normal valuation point for the account that is nearest to 31 December is to be used.
When a Specified Insurance Company has chosen to use the anniversary date of a policy for valuation purposes where if for example, the policy was opened on 3 August 2013, it will be valued on 2 August 2014. If it exceeds the reporting threshold, then it is the 2 August 2014 value that will be reported for the year ending 31 December 2014. This will be reported to HMRC in 2015.
Where the 31 December falls on a weekend or non-working day, the date to be used is the last working day before the 31 December.
The balance or valuation of a Financial Account is the balance or value calculated by the Financial Institution for purposes of reporting to the account holder.
The balance or value of an Equity Interest is the value calculated by the Financial Institution for the purpose that requires the most frequent determination of value, and the balance or value of a Debt Interest is its principal amount.
The balance or value of the account is not to be reduced by any liabilities or obligations incurred by an account holder with respect to the account or any of the assets held in the account and is not to be reduced by any fees, penalties or other charges for which the account holder may be liable upon terminating, transferring, surrendering, liquidating or withdrawing cash from the account.
For Joint Accounts, the balance or value to be attributed is the entire balance or value of the account. This will be attributable to each holder of the account.
Where a jointly held account has a balance or value of $100,000 and one of the account holders is a Specified US Person then the amount to be attributed to that person would be $100,000.
If both account holders were Specified US Persons, then each would be attributed the $100,000 and reports would be made for both.
The process for closing accounts will differ between institutions and between different products and accounts. The intention is to capture the amount withdrawn from the account in connection with the closure process, as opposed to the account balance at the point of closure given there is an expectation the balance will be reduced before point of closure. For these purposes, it is acceptable for the Financial Institution to:
· record the balance or value within five business days of when they receive instructions from the account holder to close the account; or
· record the most recent available balance or value that is obtainable following receipt of instructions to close the account, where a Financial Institution is unable to record the balance or value at the time of receiving instructions to close the account. This may include a balance or value that predates the instructions to close the account if this is the balance or value that is the most readily available.
For accounts that close as a result of switching to another bank, the balance calculated as the transferable balance as part of the BACs Account Switching service.