Instructions For Form 8966 (2015) (Page 5 of 13) in pdf

Entity that performs certain due diligence, withholding,

Owner-documented FFI (ODFFI). An ODFFI is an FFI

and reporting obligations on behalf of the Sponsored FFI.

described in Regulations section 1.1471-5(f)(3).

Sponsoring Entity. A Sponsoring Entity is an entity that

Participating FFI (PFFI). A PFFI is an FFI, or branch of

has registered with the IRS to perform the due diligence,

an FFI, that has in effect an FFI agreement with the IRS,

withholding, and reporting obligations of one or more

and includes a Reporting Model 2 FFI.

Sponsored FFIs or Sponsored Direct Reporting NFFEs.

Passive NFFE. A passive NFFE is an NFFE that is not an

Substantial U.S. owner. A substantial U.S. owner is a

excepted NFFE. With respect to a Reporting Model 2 FFI

specified U.S. person described in Regulations section

filing this Form 8966 to report its accounts and payees, a

1.1473-1(b). For purposes of filing this form, a Reporting

passive NFFE is an NFFE that is not an active NFFE (as

Model 2 FFI reporting an account held by a passive NFFE

defined in the applicable Model 2 IGA).

should substitute the term “controlling person that is a

Pooled reporting. For purposes of this form, an FFI is

specified U.S. person” for “substantial U.S. owner” and

permitted to report recalcitrant account holders,

refer to the applicable Model 2 IGA for the definition of

non-consenting U.S. accounts, and certain

controlling U.S. person. A territory NFFE that is not an

nonparticipating FFIs on an aggregate basis in a reporting

excepted NFFE determines its substantial U.S. owners by

pool rather than report specific account holder

applying the 10 percent threshold in Regulations section

information. With respect to recalcitrant account holders

1.1473-1(b)(1).

and non-consenting U.S accounts, a reporting pool

Territory Financial Institution. A Territory Financial

consists of account holders that fall within a particular type

Institution is a financial institution that is incorporated or

described in Regulations section 1.1471-4(d)(6).

organized under the laws of any U.S. territory, excluding a

Qualified Intermediary (QI), Withholding Foreign

territory entity that is a financial institution only because it

Partnership (WP), Withholding Foreign Trust (WT). A

is an investment entity.

QI is a foreign entity (or foreign branch of a U.S. financial

Territory Financial Institution treated as a U.S. per-

institution) that has entered into a QI agreement with the

son. A Territory Financial Institution treated as a U.S.

IRS. A WP is a foreign partnership that has entered into a

person means a Territory Financial Institution treated as a

withholding foreign partnership agreement with the IRS. A

U.S. person under Regulations section 1.1471-3(a)(3)(iv).

WT is a foreign trust that has entered into a withholding

foreign trust agreement with the IRS.

Trustee-Documented Trust. A Trustee-Documented

Trust is a trust described as such in a Model 1 IGA or

Recalcitrant account holder. A recalcitrant account

Model 2 IGA.

holder is an account holder (other than an account holder

that is an FFI) of a PFFI or registered deemed-compliant

U.S. account. A U.S. account is any account held by one

FFI that has failed to provide the FFI maintaining its

or more specified U.S. persons. A U.S. account also

account with the information required under Regulations

includes any account held by a passive NFFE that has

section 1.1471-5(g).

one or more substantial U.S. owners, or in the case of a

Reporting Model 2 FFI, any account held by a passive

Registered deemed-compliant FFI (RDC FFI). A

NFFE that has one or more controlling persons that are

registered deemed-compliant FFI is an FFI described in

specified U.S. persons. See Regulations section

Regulations section 1.1471-5(f)(1), and includes a

1.1471-5(a) and an applicable Model 2 IGA.

Reporting Model 1 FFI, a QI branch of a U.S. financial

institution that is a Reporting Model 1 FFI, and a

U.S. branch treated as a U.S. person. A U.S. branch

nonreporting FI treated as a registered deemed-compliant

treated as a U.S. person is a U.S. branch of a PFFI,

FFI under a Model 2 IGA.

Reporting Model 1 FFI, Reporting Model 2 FFI, or RDC

FFI that is treated as a U.S. person under Regulations

Reporting Model 1 FFI. A Reporting Model 1 FFI is an

section 1.1441-1(b)(2)(iv)(A).

FI, including a foreign branch of a U.S. financial institution,

treated as a reporting financial institution under a Model 1

Withholding agent. With respect to a withholdable

IGA.

payment, a withholding agent is a person described in

Regulations section 1.1473-1(d).

Reporting Model 2 FFI. A Reporting Model 2 FFI is an FI

or branch of an FI treated as a reporting financial

Withholdable payment. A withholdable payment is a

institution under a Model 2 IGA.

payment described in Regulations section 1.1473-1(a).

Specified U.S. person. A specified U.S. person is any

Accounts and Withholdable

U.S. person described in Regulations section 1.1473-1(c).

Payments Required To Be Reported

Sponsored Direct Reporting NFFE. A Sponsored

Direct Reporting NFFE is a Direct Reporting NFFE that

Accounts to be reported. A PFFI, Reporting Model 2

has a Sponsoring Entity perform due diligence and

FFI, or RDC FFI must file a separate Form 8966 annually

reporting requirements on behalf of the Sponsored Direct

for each account required to be reported, or for each

Reporting NFFE as described in Regulations section

group of accounts for which pooled reporting is permitted,

1.1472-1(c)(5).

in accordance with the FFI agreement and Regulations

section 1.1471-4(d). Such an FFI must report with respect

Sponsored FFI. A Sponsored FFI is an FFI that is an

to accounts required to be reported that are maintained at

investment entity, a controlled foreign corporation, or a

any time during each calendar year. This includes

closely held investment vehicle that has a Sponsoring

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Instructions for Form 8966 (2015)

Instructions For Form 8966 (2015) Page 5

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