There is a popular offensive technique in ice hockey known as the "jam." In a jam, the offensive team players use their driving force all together to push the defense into a useless stance that will give any number of the attacking team players an advantage over the goalie. On February 8, 2012, the Internal Revenue Service (IRS) wisely chose to utilize this tactic in responding to the immense challenge of drafting regulations for the provisions of the Financial Account Tax Compliance Act (FATCA). In what must be one of the largest regulation projects ever released, it appears that a significant percentage of the IRS's 106,000 employees came together in a driving force to deliver this guidance. This GT Alert attempts to synthesize selected portions of the massive release into understandable pieces. It is not intended to provide a detailed guide to the proposed regulations; it is intended only to provide an overview of certain salient points.

I. The Pre-Game: Brief FATCA Background

The FATCA provisions, contained in Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (the "Code"), contain an extraordinary set of penalty tax rules on foreign financial institutions (FFIs) that do not (i) conduct due diligence on their account holders, equity holders and debt holders to ferret out U.S. persons that are holding assets outside of the United States and (ii) disclose the identity of such persons to the IRS.¹ Specifically, if the FFI does not comply with the FATCA rules, then "withholdable payments" to it for its own account and on behalf of its customers are subject to U.S. federal income tax withholding.² Withholdable payments include items of U.S.-source income, such as interest and dividends, as well as gross proceeds "from the disposition of any property of a type which produce interest or dividends from sources within the United States."³ If the payment is made for the account of a non-participating FFI, "no credit or refund shall be allowed or paid with respect to such tax."⁴ In other words, if an FFI does not comply with the FATCA rules, it will be subjected to gross proceeds withholding on its U.S.-source income and will not be able to recover the withheld amounts.

Code § 1471(b) contains the six requirements that must be met in order for an FFI to be considered to be in compliance with the FATCA rules:

1. The FFI must obtain the information necessary to determine if it has "United States accounts." 
2. The FFI must comply with IRS-specified due diligence and verification requirements with respect to U.S. accounts. 
3. The FFI must annually report IRS-specified information to the IRS on its U.S. accounts. 
4. The FFI must withhold on U.S.-source payments made to recalcitrant account holders⁵and non-compliant FFIs and withhold on payments to other FFIs who have elected not to withhold on their own recalcitrant account holders. 
5. The FFI must comply with IRS requests for additional information. 
6. The FFI must attempt to obtain a waiver of any foreign law that would prevent the transmission of the information sought by the IRS to the IRS on the FFI's accounts and, if such waiver cannot be obtained, to close the affected accounts.

Prior to the release of the proposed regulations, the IRS has released three sets of preliminary guidance under the FATCA provisions of the Code: (i) Notice 2010-60,⁶ (ii) Notice 2011-34,⁷and (iii) Notice 2011-53.⁸ Notice 2010-60 delineated when certain foreign entities would be treated as FFIs and prescribed certain due diligence rules that FFIs would be required to complete in order to satisfy their due diligence requirements on account holders. Notice 2011-34 modified and expanded such due diligence requirements and provided guidance on the passthru payment rules. Notice 2011-53 extended the period of time that FFIs would have before FATCA withholding requirements became effective.

II. The Game Plan: Scope of the Proposed Regulations

Broadly, the proposed regulations address eight subjects: (1) the scope of obligations grandfathered from the application of the FATCA rules, (2) transitional rules for entities that could face non-U.S. legal prohibitions on complying with FATCA, (3) categories of deemed compliant entities, that is, non-U.S. entities that will be considered FATCA-compliant by virtue of their status, (4) modification of the due diligence requirements to ferret out U.S. accounts, (5) guidance on the procedures necessary to verify FATCA compliance, (6) the definition of a financial account, (7) extension of the transition period for information reporting and withholding on passthru payments and (8) government-to-government reporting. Over and above these categories of issues, the proposed FATCA regulations address myriad interpretative issues.

1. Who Is the Payee?

Various practitioners had reached contrary conclusions regarding who is the payee for FATCA purposes when a withholding agent makes a payment to a foreign account. Specifically, it was not clear whether FATCA withholding was required if either or both of the foreign institutions where the account was maintained or the account holder was not FATCA-compliant. The IRS has provided a set of rules that consistently treats the owner of the account as the payee.⁹Accordingly, if a non-U.S. person who is not subject to FATCA withholding maintains an account at a non-participating FFI (NPFFI), a withholding agent is not required to withhold on the payment because of this fact.

Certain look-through rules apply to an account holder. If the account holder is (i) a non-financial foreign entity (NFFE), (ii) a participating FFI (PFFI) acting as an intermediary with respect to FDAP income, (iii) acting as an NQI or NWP with respect to a payment or (iv) otherwise acting as an agent, the payee not will be considered to be the beneficial owner(s).¹⁰With one exception, payments to disregarded entities are treated as made to the owners of such entities.¹¹ (The exception is that a payment to a "limited branch" is treated as made to a NPFFI.¹²) Payments to U.S. branches of non-U.S. banks will be treated as payments to U.S. persons if the U.S. branch has elected to be treated as a U.S. person for regular tax purposes or if elects to be treated as a U.S. person under FATCA.¹³

Detailed rules are provided on how a payer determines the payee.¹⁴ In an interesting twist on the rules for FDAP withholding, proof that no withholding was required may be furnished after the date of payment "but that was effective as of the date of payment."¹⁵

2. Expanded Categories of Grandfathered Obligations 

The FATCA legislation provided grandfather protection for withholding for payments on certain financial instruments outstanding on March 12, 2012. The proposed regulations provide that grandfather protection will be extended to payments on obligations outstanding on January 1, 2013 (now defined as "preexisting obligations").¹⁶ If a preexisting obligation is materially modified after January 1, 2013, it will lose its grandfather status.¹⁷ Grandfather protection will also be provided for the gross proceeds from the disposition of a preexisting obligation. As under the Notices, a grandfathered obligation¹⁸ cannot include an instrument treated as equity, one without a stated term, such as a demand deposit or an ISDA Master Agreement, but can include revolving lines of credit executed prior to 2013.¹⁹

The proposed FATCA regulations provide more lenient documentation rules for payers on preexisting obligations that apply for obligations arising after January 1, 2013.²⁰ In certain cases, the more lenient rules only apply to years before 2017. Lenient rules are also provided for establishing the payee under preexisting obligations of $1 million or less.²¹

3. Transitional Rules for FFIs Facing Local Legal Restrictions on FATCA Compliance

The proposed FATCA regulations will allow two additional years, until January 1, 2016, for affiliates of a PFFI, that is, an FFI that has signed an FFI Agreement, that cannot comply with FATCA because of local law prohibitions on the ability to become FATCA-compliant. In order to take advantage of this rule, FFIs that are not subject to the local law limitation must comply with the FATCA due diligence, reporting and withholding requirements and affiliates that are subject to reporting restrictions must nonetheless comply with due diligence requirements. In other words, however, an FFI can still become a PFFI through 2016 even though one or more of its branches or affiliates is legally prohibited from transmitting account information to the IRS.²²

4. Deemed Compliant FFIs

The proposed FATCA regulations expand the categories of deemed compliant FFIs. Deemed compliant FFIs are FFIs that are treated as FATCA-compliant even though they are not required to conduct due diligence or report information on U.S. accounts to the IRS. The proposed regulations specify three categories of deemed compliant FFIs:

A. Registered Deemed Compliant FFIs. These FFIs register with the IRS to establish their exemption. Such entities include local banks without a place of business outside of their country of organization, FFI affiliates that do not maintain U.S. accounts, qualified collective investment vehicles (investment vehicles regulated in its country of formation as an investment fund) and restricted funds (funds that cannot sell interests to U.S. persons).²³ A registered deemed-compliant FFI may use agents for ensuring that they meet the necessary requirements.

B. Certified Deemed Compliant FFIs. These FFIs certify to payers that they are deemed compliant. They include a non-U.S. local bank that is not a registered deemed compliant FFI with assets of less than $175 million, a non-U.S. retirement fund, non-profit organization and FFIs with only low value accounts and less than $50 million in assets, can certify to the IRS that they meet specified requirements.

C. Owner-Documented FFIs. An FFI who maintains all of its accounts with a designated withholding agent who agrees to undertake additional due diligence is treated as a deemed complaint FFI with respect to payments received from the designated withholding agent, provided that it does not receive the payment as an agent of another person. Certain hedge funds should be able to take advantage of this exception. The exception, however, requires the provision of account holder information to the designated withholding agent.

5. Modification of Due Diligence Procedures

In order to be FATCA-compliant, an FFI must conduct due diligence to determine its U.S. account holders (both direct and indirect). FFIs perceived that the due diligence requirements specified in Notice 2010-60, as modified by Notice 2011-34, created a significant administrative burden. The IRS responded in the proposed FATCA regulations by allowing FFIs to limit due diligence to electronic records, unless the account has a balance or value in excess of $1,000,000. In addition, preexisting accounts with values of less than $50,000 and insurance policies with values of $250,000 or less are excluded from the due diligence procedures. Account balances not maintained in U.S. dollars are valued at the spot rate in effect on the last day of the preceding year.²⁴ FFIs may rely on their existing account opening procedures for identifying U.S. accounts unless the new account is a passive investment entity or has indicia of U.S. ownership.

An FFI may use an independent auditor's report, not more than one year old, to establish that its due diligence was sufficient to determine its U.S. owners.²⁵ Importantly, FFIs that comply with the due diligence requirements specified in the proposed regulations will not be strictly liable in the event that one or more accounts identified as a non-U.S. account turns out to be a U.S. account.

The preamble to the proposed FATCA regulations states that Treasury and the IRS intends to modify the FDAP withholding regulations promulgated under Code § 1441 to conform to the due diligence standards set forth in the FATCA regulations.²⁶

A. Individual Accounts. The proposed FATCA regulations do not require FFIs to conduct due diligence on preexisting offshore (i) accounts with value of $50,000 or less or (ii) insurance or annuity accounts with values of $250,000 or less.²⁷ FFIs with accounts with values larger than these thresholds, but values of $1 million or less may limit due diligence for U.S. indicia to electronic searches. In determining the account balances, the PFFI must aggregate all accounts, including jointly held accounts, held by the PFFI and its affiliates.²⁸ If, however, an indicia of U.S. ownership is found, the FFI must conduct additional due diligence.

The proposed FATCA regulations cast aside the rules for private banking accounts contained in Notice 2011-34 and replace this concept with "high value accounts." Specifically, FFIs holding accounts with values in excess of $1,000,000 must search non-electronic files for indicia of U.S. ownership and must make an inquiry of the relationship manager who maintains the account.²⁹A due diligence exception is provided for accounts for which due diligence has been preformed for QI or withholding partnership (WP) purposes.³⁰

FFIs may rely upon their "know your customer" (KYC) and anti-money laundering (AML) procedures to determine if a new account is owned by a U.S. person. If indicia of U.S. ownership is found, the FFI must obtain additional information regarding the account.³¹

B. Entity Accounts. FFIs need not conduct due diligence on preexisting entity accounts with balances of $250,000 or less (determined by aggregating all accounts held by the entity at the FFI and its affiliates) until the account balance exceeds $1 million.³² For other preexisting accounts, the FFI can rely on its KYC/AML records to determine whether the account holder is a U.S. person for up to one year for prima facie FFIs³³ and for up to 2 years for all other entity accounts.³⁴ If the account balance is $1 million or less, the FFI can rely on its records to determine whether the entity has substantial U.S. owners. If the account balance is in excess of $1 million, the FFI must make an independent search to determine if the entity has U.S. owners or obtain certification from the entity that it does not have substantial U.S. owners.

FFIs are not required to conduct due diligence on two categories of new accounts. First, no due diligence is required on an account opened by an FFI (other than an FFI for which the account holder has agreed to perform reporting). If the FFI does not provide certification that it is a PFFI, the FFI opening the account will simply treat the account as belonging to a NPFFI. Second, no due diligence is required for accounts opened by an entity engaged in an active nonfinancial trade or business. For all other entities opening accounts, the FFI must obtain certification regarding the substantial U.S. owners from the entity opening the account.

6. FFI Obligations and Verifying FATCA Compliance

The regulations specify that in order to become a PFFI, an FFI will be required to undertake the following responsibilities pursuant to a to-be-promulgated PFFI Form:

A) Withhold on passthru payments made to NPFFIs and recalcitrant account holders beginning in 2014; 
B) Obtain information on account holders as is necessary to determine which accounts are U.S., recalcitrant and NPFFI accounts; 
C) Annually report to the IRS on U.S. and recalcitrant accounts; 
D) Obtain a waiver of non-U.S. law that would impede FATCA reporting; 
E) Adopt written policies and procedures governing the due diligence procedure; 
F) Conduct periodic reviews of its compliance procedures; 
G) Certify compliance to the IRS; and 
H) Respond to IRS requests for information.³⁵

If the IRS determines that there are compliance failures, it can verify compliance corrections through an audit, performed by an external auditor.³⁶

PFFIs will be required to report the name, address, taxpayer identification number (TIN) and account information of U.S. account holders for 2013 and 2014. Beginning in 2016 (with respect to 2015), PFFIs will be required to report income information on U.S. accounts. Also beginning with respect to 2016, PFFIs will be required to provide full reporting on U.S. accounts, including gross proceeds reporting. In addition, FFIs can report in either the currency in which the account is maintained or U.S. dollars.³⁷

The proposed regulations specify that third party audits of FATCA compliance will not be required. In addition, FATCA compliance can be verified by the FFI officers charged with ensuring FATCA compliance.³⁸ The initial certification is due within one year of the effective date of the FFI Agreement and requires confirmation that high-value accounts have been checked. Thereafter, annual reporting is required.³⁹ U.S. branches can rely on their backup withholding and other income tax reporting in lieu of FATCA reporting.⁴⁰ FATCA reporting to payees and the IRS will be made on Form 1042.⁴¹

7. Definition of Financial Account

FATCA reporting is required only with respect to United States accounts.⁴² A U.S. account is any financial account held by a U.S. person or a foreign-owned U.S. person.⁴³ Accordingly, if an account falls outside of the definition of a financial account, it is exempt from FATCA due diligence and reporting. The definition of financial account has been narrowed in the proposed regulations to focus on bank accounts and custodial accounts.⁴⁴ The proposed definition excludes most debt and equity securities issued by banks and brokerage firms. Specifically, the proposed FATCA regulations would narrow the definition of financial account to include only:

A) Depositary accounts in a financial institution. 
B) Custodial accounts. 
C) Non-publicly traded equity or debt in a financial institution (including hedge funds) and 
D) Cash value insurance contracts.

Retirement and pension accounts subject to non-U.S. laws are excluded from the definition. Tax-favored non-retirement savings accounts established under non-U.S. law that limit annual contributions to $50,000 or less are also excluded from the definition. Accounts held by persons exempt from FATCA, including foreign governments, are also exempted from the classification of financial accounts.⁴⁵

8. Withholding Obligations and Extension of Transitional Period

A. Withholdable Payments. The proposed FATCA regulations contain extensive guidance on what constitutes a withholdable payment.⁴⁶ Specifically, withholdable payments include U.S.-source FDAP income. If a payment is grossed up in respect of FATCA withholding tax, the gross-up payment is treated as U.S.-source FDAP income.⁴⁷ Accrued interest in bond sales is excluded from the definition of withholdable payments. As noted in the Background section above, gross proceeds from the disposition of U.S. stocks and bonds are withholdable payments. The proposed FATCA regulations clarify that gross proceeds includes the "total amount realized" from a sale or other disposition.⁴⁸

Most importantly, the proposed FATCA regulations carve-out payments made by the withholding agent in the ordinary course of its trade or business from nonfinancial goods and services from gross proceeds withholding.⁴⁹ Such payments include ordinary course payments for nonfinancial services, wages, office and equipment leases, software licenses, transportation, freight, gambling winnings, awards, prizes, scholarships, and interest on outstanding accounts payable arising from the acquisition of nonfinancial services, goods, and other tangible property.

B. Withholding Obligations. Withholdable payment withholding is required beginning in 2014 under a transitional rule, unless the NPFFI or recalcitrant account holder is eligible for a government-to-government exception.⁵⁰ U.S. branches of non-U.S. banks will be considered compliant with FATCA if they satisfy their backup withholding obligations.⁵¹ If the payee is aprima facie NPFFI, 2014 withholding is required.⁵² Otherwise withholding is required to begin 2015. A payer must treat a payee as a prima facie FFI if its electronic records indicate whether it is a QI or NQI or contain NAICS Codes indicative of it being a financial institution. The information that a PFFI must report to the IRS is phased in between 2013 and 2015. For these years, less information must be reported to the IRS than in 2016 and thereafter.⁵³ Withholding on passthru payments is scheduled to begin in 2017.

Withholding will be required regardless of whether the payment is for the account of the NPFFI itself or a person with an account at the FFI.⁵⁴ This rule is tempered, however, by the payee rule described above. Specifically, if the payer can associate the payment with information establishing that the beneficial owner is not subject to FATCA withholding, no withholding is required if the account is maintained at a NPFFI. If the payee is a non-qualified intermediary (NQI) or nonwithholding partnership (NWP) and provides the payer with a Form W-8IMY, no withholding is required, however, with respect to the portion of any payment that can be traced to a person exempt from FATCA withholding.⁵⁵ NQIs and NWPs that provide the required information will not be held liable for the failure of a withholding agent to have withheld the correct amounts.⁵⁶ Only qualified intermediaries (QIs) may make the election provided for in Code §1471(b)(3) to be withheld upon instead of making the withholding themselves.⁵⁷ In addition, the withholding can be passed only to a PFFI or a U.S. withholding agent.⁵⁸

The proposed FATCA regulations contain rules on when payments made to NFFEs are subject to withholding.⁵⁹ No withholding is required on payments to "exempted NFFEs." Exempted NFFEs include publicly-traded corporations, bona fide residents of U.S. possessions exempt organizations and active NFFEs. An active NFFE is a NFFE with less than 50% of its income derived from passive sources.⁶⁰

Importantly, the proposed FATCA regulations incorporate the "knowledge" test contained in Treasury Regulation § 1.1441-4(d).⁶¹ Under this rule, if a payer of a withholdable payment does not have "knowledge of the facts that give rise to the payment," it cannot be held responsible for a failure to withhold.

C. Foreign Passthru Payments. Pass-thru payment withholding is not yet required on foreign pass-thru payments.⁶² The preamble states that withholding on foreign passthru payments will be required beginning in 2017. Nonetheless, for 2015 and 2016, PFFIs will be required to report the aggregate amount of certain payments to NPFFIs.

D. Coordination with Other U.S. Tax Withholding Rules. If a payment is subject to regular income tax withholding, the amount withheld is provided as a credit against any FATCA withholding taxes that must be withheld.⁶³ If a payment is subject to withholding under the Foreign Investment in Real Property Tax Act (FIRPTA), it is not subject to FATCA withholding.⁶⁴Last, amounts subject to withholding on a partnership allocation of income effectively connected with the conduct of a trade or business in the United States under Code § 1446 are not subject to FATCA withholding.⁶⁵

9. A Point to Note on U.S.-Owned Foreign Entities

The FATCA rules require withholding on withholdable payments made to U.S.-owned foreign entities, as well as on payments made to U.S. persons.⁶⁶ The proposed FATCA regulations take an expansive stance on determining when a U.S. person is an owner of a non-U.S. entity by counting U.S. persons who hold options in the non-U.S. entity as owners, regardless of strike price of the option or whether there are any conditions precedent to the exercise of the option.⁶⁷

10. Impact of Tax Treaties

The proposed FATCA regulations confirm that the FATCA withholding tax can be reduced pursuant to the provisions of an income tax treaty.⁶⁸ These provisions still leave open a significant issue for NPFFIs that suffer gross proceeds withholding. Specifically, the issue remains as to whether a treaty-eligible NPFFI can claim a reduced rate of tax on gross proceeds withholding. Given the newness of FATCA, no treaty specifically addresses the rate of tax on what amounts to a confiscatory payment. Thus, unless it could be argued that an "Other Income" provision exempts a treaty-eligible NPFFI from FATCA taxes, it does not appear that a treaty could reduce this withholding.

11. Government-to-Government Reporting

Under the government-to-government rules, the FFI will be required to collect the information required by the FATCA rules and report this information to its residence country government. The residence country government will then enter into an information exchange agreement with the United States to provide the collected information to the IRS. Simultaneous with the release of the proposed FATCA regulations, the IRS, France, Germany, Italy, Spain and the United Kingdom issued a joint statement (the Joint Statement).⁶⁹ Each of the countries has agreed to pursue legislation to allow FFIs to collect FATCA information and report such information to the resident authorities. The resident authorities would then report the information collected on U.S. accounts to the IRS.

FFIs that are resident in countries that enter into government-to-government agreements with the IRS obtain close to a complete exemption from the direct provisions of the FATCA rules. Specifically, such FFIs will not be required to enter into an FFI agreement with the IRS. All FATCA reporting will be made to local authorities instead of the IRS. There will not be any FATCA withholding on payments made to FFIs resident in the non-U.S. country. In addition, such FFIs will not be required to close the accounts of recalcitrant account holders, withhold on passthru payments made to recalcitrant account holders on payments made to any other FFI located in a country with which there is a government-to-government agreement.

III. Post-Game: Future Issues to Be Addressed

The statutory withholding rules create a dichotomy between U.S. financial institutions and FFIs. Specifically, U.S. financial institutions are requires to withhold only on U.S.-source income, while the FATCA regime requires FFIs to withhold on gross proceeds and passthru payments as well.⁷⁰ This difference creates the opportunity for NPFFIs to use U.S. financial institutions as "blockers." Specifically, a U.S. person paying foreign source income to a NPFFI would not be required to withhold on a foreign passthru payment (that contained allocated U.S.-source income). The IRS stated that it intends to address this issue shortly.

The IRS also stated that future guidance will include allowing on-line PFFI registration prior to 2013, procedures for allowing a PFFI to designate an entity that will be the "lead PFFI" for affiliated entities, the provision of PFFI identification numbers (FATCA IDs), amendments to qualified intermediary agreements to contain FATCA representations and amendments to Forms W-8 to provide for the provision of FATCA IDs to withholding agents.

One last point of note is that while the IRS has specified that equity interests cannot constitute grandfathered instruments, it will consider providing an exemption for equity interests in securitization vehicles with limited lives.

_{¹See Code § 1471(d)(2) (financial accounts include depository accounts, custodial accounts and debt and equity investments in the FFI). 
²Code § 1471(a); Prop. Treas. Reg. § 1.1471-2(a)(1). 
³Code § 1473(1)(A). 
⁴Code § 1474(b)(2)(a)(ii). 
⁵Recalcitrant account holders are defined as persons who fail to comply with requests for information or fail to provide a waiver of foreign law, if requested to do so. Code § 1471(d)(6). 
⁶2010-37 I.R.B. 329. 
⁷2011-19 I.R.B. 765. 
⁸2011-32 I.R.B. 124. 
⁹See Prop. Treas. Reg. § 1.1471-2(b)(1)(v); Prop. Treas. Reg. § 1.1471-3(a)(1). 
¹⁰Prop. Treas. Reg. § 1.1471-3(a)(3). 
¹¹Prop. Treas. Reg. § 1.1471-3(a)(3)(v). 
¹²Id. A limited branch is an affiliate, division of or business line in a participating FFI that cannot comply with FATCA due to local law requirements. Prop. Treas. Reg. § 1.1471-4(e)(2)(iii). 
¹³Prop. Treas. Reg. § 1.1471-3(a)(3)(vi). 
¹⁴Prop. Treas. Reg. § 1.1471-3(c), (d). 
¹⁵Prop. Treas. Reg. § 1.1471-3(c)(7). 
¹⁶Prop. Treas. Reg. § 1.1471-2(b)(1)(i). 
¹⁷Prop. Treas. Reg. § 1.1471-2(b)(2)(iii). 
¹⁸Prop. Treas. Reg. § 1.1471-2(b)(1). 
¹⁹Prop. Treas. Reg. § 1.1471-2(b)(2)(ii). 
²⁰Prop. Treas. Reg. § 1.1471-3(d)(2)(ii). 
²¹Prop. Treas. Reg. § 1.1471-3(d)(11)(iii)(B). 
²²Prop. Treas Reg. § 1.1471-4(e)(2). 
²³Prop. Treas. Reg. § 1.1471-5(f)(1). 
²⁴Prop. Treas. Reg. § 1.1471-4(c)(6) (denominated (5) in the author's version. 
²⁵Prop. Treas. Reg. § 1.1471-3(d)(7)(ii). 
²⁶REG-121647-10. 
²⁷Prop. Treas. Reg. § 1.1471-4(c)(5)(iv); Prop. Treas. Reg. § 1.1471-4(c)(7). 
²⁸Prop. Treas. Reg. § 1.1471-4(c)(5)(iii)(B). This regulation is misnumbered in the author's copy of the regulations as Prop. Treas. Reg. § 1.1471-4(c)(4)(iii)(B). 
²⁹Prop. Treas. Reg. § 1.1471-4(c)(8). 
³⁰Prop. Treas. Reg. §1 1.1471-4(c)(9). 
³¹See e.g. Prop. Treas. Reg. § 1.1471-3(e)(4)(ii)(C). 
³²Prop. Treas. Reg. § 1.1471-4(c)(3)(ii). 
³³See Section 8 below. 
³⁴Prop. Treas. Reg. § 1.1471-4(c)(3). 
³⁵Prop. Treas. Reg. § 1.1471-4(a). 
³⁶Prop. Treas. Reg. § 1.1471-4(a)(6). 
³⁷Prop. Treas. Reg. § 1.1471-4(d)(4)(iv)(F). 
³⁸Prop. Treas. Reg. § 1.1471-4(c)(10). 
³⁹Prop. Treas. Reg. § 1.1471-4(d)(2). 
⁴⁰Prop. Treas. Reg. § 1.1471-4(d)(2)(iii)(B). 
⁴¹Prop. Treas. Reg. § 1.1474-1. 
⁴²Code § 1471(b)(1)(A). 
⁴³Code § 1471(d)(1). 
⁴⁴Prop. Treas. Reg. § 1.1471-5(b). 
⁴⁵See Treas. Reg. § 1.1471-6 for the parameters on persons exempt from FATCA reporting. 
⁴⁶Prop. Treas. Reg. § 1.1473-1. 
⁴⁷Prop. Treas. Reg. § 1.1473-1(a)(2)(v). 
⁴⁸Prop. Treas. Reg. § 1.1473-1(a)(3)(iii). 
⁴⁹Prop. Treas. Reg. § 1.1473-1(a)(4)(iii). 
⁵⁰Prop. Treas. Reg. § 1.1471-4(b)(1). 
⁵¹Prop. Treas. Reg. § 1.1471-4(b)(5). 
⁵²Prop. Treas. Reg. § 1.1471-2(a)(4)(ii). 
⁵³Prop. Treas. Reg. § 1.1471-4(d)(7). 
⁵⁴Prop. Treas. Reg. § 1.1471-2(a)(1). 
⁵⁵Prop. Treas. Reg. § 1.1471-2(a)(2)(i); Prop. Treas. Reg. § 1.1471-2(a)(4)(v). 
⁵⁶Prop. Treas. Reg. § 1.1471-2(a)(2)(ii). 
⁵⁷Prop. Treas. Reg. § 1.1471-2(a)(2)(iii). 
⁵⁸Prop. Treas. Reg. § 1.1471-2(a)(2)(iii)(1). 
⁵⁹Prop. Treas. Reg. § 1.1472-1. 
⁶⁰Prop. Treas. Reg. § 1.1472-1(c)(1)(v). 
⁶¹Prop. Treas. Reg. § 1.1471-2(a)(4)(i). 
⁶²Prop. Treas. Reg. § 1.1471-4(b)(3). 
⁶³Prop. Treas. Reg. § 1.1474-6(b)(1). 
⁶⁴Prop. Treas. Reg. § 1.1474-6(c)(1). 
⁶⁵Prop. Treas. Reg. § 1.1474-6(d). 
⁶⁶Code § 1471(d)(1)(A). 
⁶⁷Prop. Treas. Reg. § 1.1473-1(b)(2)(iv). 
⁶⁸Prop. Treas. Reg. § 1.1474-5(a)c.i. 
⁶⁹Joint Statement from the United States, France, Germany, Italy, Spain and the United Kingdom Regarding Intergovernmental Approach to Improving International Tax Compliance and Implementing FATCA (February 8, 2012). 
⁷⁰Compare Code § 1471(a)(all withholding agents required to withhold on withholdable payments); Code § 1471(b)(1)(D)(i)(FFIs required to withhold on passthru payments made to NPFFIs and recalcitrant account holders).}