SECTION 2. BACKGROUND

On March 18, 2010, the Hiring Incentives to Restore Employment Act of 2010, Pub. L. 111–147 added chapter 4 of Subtitle A (chapter 4 or FATCA) to the Code, comprised of sections 1471 through 1474. On January 28, 2013, the Department of the Treasury (Treasury Department) and the IRS published final regulations under chapter 4 in the Federal Register (78 FR 5874), and, on September 10, 2013, published corrections to those final regulations (collectively, the final chapter 4 regulations). The final chapter 4 regulations provide comprehensive guidance to withholding agents and FFIs; in particular, the regulations under § 1.1471–4 provide the substantive requirements applicable to participating FFIs under the FFI agreement.

On July 29, 2013, the Treasury Department and the IRS issued Notice 2013–43 (2013–31 I.R.B. 113), which revises the timelines for implementation of the FATCA requirements and provides additional guidance concerning the treatment of FFIs located in jurisdictions that have signed intergovernmental agreements for the implementation of FATCA (IGAs) but have not yet brought those IGAs into force. On October 29, 2013, the Treasury Department and the IRS published Notice 2013–69 (2013–46 I.R.B. 503), which sets forth a draft FFI agreement that substantially incorporates the provisions of § 1.1471–4 of the final chapter 4 regulations, as modified by Notice 2013–43 (e.g., to reflect revised timelines for

FATCA implementation). Further, on December 13, 2013, the Treasury Department and the IRS released Announcement 2014–1 (2014–2 I.R.B. 393), which provides that the FFI agreement will be published prior to January 1, 2014. Section 5 of this revenue procedure sets forth the FFI agreement, which finalizes the draft FFI agreement. Modifications to the draft FFI agreement that are incorporated into the FFI agreement are described in section 4 of this revenue procedure.