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, including the substantive requirements applicable to participating FFIs under the FFI agreement, which are contained in the regulations under § 1.1471–4. On January 13, 2014, the Treasury Department and the IRS issued Revenue Procedure 2014–13, which provides the terms of the FFI agreement and substantially incorporates the provisions of § 1.1471–4 of the final chapter 4 regulations, as modified by Notice 2013–43 (2013–31 I.R.B. 113) ( e.g., to reflect revised timelines for FATCA implementation).

On February 20, 2014, the Treasury Department and the IRS released two sets of temporary regulations. One set of temporary regulations (T.D. 9657) provides clarifications and modifications to the final chapter 4 regulations (temporary chapter 4 regulations). A second set of temporary regulations (T.D. 9658) primarily provides rules under chapters 3, 61, and section 3406 of the Code to coordinate with the requirements provided in the final and temporary chapter 4 regulations (temporary coordination regulations).

In the preamble to the temporary chapter 4 regulations, the Treasury Department and the IRS announced that the FFI agreement published in Rev. Proc. 2014–13 would be updated consistent with the temporary chapter 4 regulations and the temporary coordination regulations. Section 5 of this revenue procedure provides the updated FFI agreement.