SEC. 3. APPLICATION FOR

WITHHOLDING AGREEMENT

1. Eligible person and eligible fi- nancial institution . An eligible person is a person described in §1.1441–1(e)(5)(ii) that may apply for a withholding agreement under this revenue procedure. An eligible financial institution is an eligible person described in §1.1441–1(e)(5)(ii)(A) (a clearing organization defined in section 1.163–5(c)(2)(i)(D)( 8 ) or a financial institution defined in §1.165–12(c)(1)(iv)).

2. Pre-application conference . An eligible person interested in a withholding agreement under this revenue procedure may request one or more pre-application conferences with the Assistant Commissioner (International), Foreign Payments Division, to explore informally the benefits and burdens associated with such an agreement. The conference provides an opportunity to address such matters as the scope of the agreement, available alternatives, special issues regarding the institution’s ability to comply with the terms of the agreement, the legal status of the agreement under local law, and the nature of documentation, recordkeeping, reporting, verification, withholding and remittances of tax that may be required under the agreement.

3. Where to Apply . An eligible person may apply for a withholding agreement by submitting a written request to the Assistant Commissioner (International), Foreign Payments Division CP:IN:I:WT, 950 L’Enfant Plaza, Washington D.C. 20024.

4. Content of Application—Eligible Financial Institution . The application shall indicate that the applicant is an eligible financial institution and that it requests a withholding agreement with the Service pursuant to this revenue procedure. In the case of an eligible financial institution, the application shall include the information described in this section 3.04(i) through (viii). Upon review of the application, the Service may request additional information and documentation.

(i) The applicant’s name, address, and employer identification number. If

the applicant does not have an employer identification number, a completed Form SS–4 must be included to obtain such number.

(ii) A description of the applicant including the country under whose laws the applicant is created or organized and status of the applicant (corporation, partnership, trust, pool, etc.) under such country’s laws.

(iii) A list of the applicant’s officers and directors, and a list of the employees who are responsible parties for performance under the agreement.

(iv) An explanation of the branches, if any, intended to be covered by the agreement and a description of their location.

(v) An explanation of the applicant’s ‘‘know-your-customer’’ practices and procedures for opening accounts, identifying customers, and communication with customers, and the extent to which they are mandated and verified under local law and regulations applicable at each location intended to be covered by the agreement, and the penalties or sanctions that may apply under local law in the event of a failure to comply with such procedures. Supporting documentation must be included.

(vi) An explanation of the account agreements and other account documents used by the applicant in its account relationships with its customers (or partners) at each location intended to be covered by the agreement.

(vii) Information regarding the number of account holders (or partners) likely to be covered by an intermediary certificate and the aggregate value of estimated U.S. investments associated with the account holders (or partners).

(viii) Information regarding governmental or other supervision to which the applicant is subject at each location intended to be covered by the agreement.

.05 Content of Application—Eligible Persons Other than Financial Institu- tions . The application shall indicate that the applicant is an eligible person, other than an eligible financial institution, and that it requests a withholding agreement with the Service pursuant to this revenue procedure. In the case of an applicant other than an eligible financial institution, the application shall include the information described in this section 3.05 (i) through (viii). Upon review of the application, the Service may request additional information and documentation.

1996–27 I.R.B. 8

(i) The applicant’s name, address, and employer identification number. If the applicant does not have an employer identification number, a completed Form SS–4 must be included to obtain such number.

(ii) The reason that the applicant wishes to conclude a withholding agreement.

(iii) A description of the applicant including the country under whose laws the applicant is created or organized and status of the applicant (corporation, partnership, trust, pool, etc.) under such country’s laws.

(iv) A list of the applicant’s officers and directors, and a list of the employees who are responsible parties for performance under the agreement.

(v) An explanation of the branches, if any, intended to be covered by the agreement and a description of their location.

(vi) Information regarding the number of account holders (or partners) likely to be covered by an intermediary certificate and the aggregate value of estimated U.S. investments associated with the account holders (or partners).

(vii) An explanation of the applicant’s ‘‘know-your-customer’’ practices and procedures, if any, and the extent to which they are mandated and verified under local law and regulations applicable at each location intended to be covered by the agreement, and the penalties or sanctions that may apply under local law in the event of a failure to comply with such procedures. Supporting documentation must be included.

(viii) Information regarding governmental or other supervision to which the applicant is subject at each location intended to be covered by the agreement.