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) of 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 (TD 9610) under chapter 4 in the Federal Register (78 FR 5874), and, on September 10, 2013, published corrections to those final regulations (collectively, the 2013 chapter 4 regulations). The 2013 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 §1.1471– 4. On January 13, 2014, the Treasury Department and the IRS issued Revenue Procedure 2014-13 (2014-3 I.R.B. 419), which provides the terms of the FFI agreement and substantially incorporates the provisions of §1.1471–4 of the 2013 chapter 4 regulations, as modified by Notice 2013-43 (2013-31 I.R.B. 113) (for example, to reflect revised timelines for FATCA implementation).

On March 6, 2014, temporary regulations (TD 9657) under chapter 4 were published in the Federal Register (79 FR 12812) and corrections to the temporary regulations were published in the Federal Register on July 1, 2014, and November 18, 2014 (79 FR 37175 and 78 FR 68619, respectively). TD 9657 and the corrections thereto are referred to collectively as the 2014 chapter 4 regulations.

On July 14, 2014, the Treasury Department and the IRS issued Revenue Procedure 2014-38, which updated the FFI agreement published in Revenue Procedure 2014-13 consistent with the 2014 chapter 4 regulations and temporary regulations (TD 9658) under chapters 3 and 61 and sections 3406 and 6402 (79 FR 12726). The Treasury Department and the IRS are publishing regulations finalizing certain temporary regulations under chapter 4 (final chapter 4 regulations) and temporary regulations providing additional rules under chapter 4 (temporary chapter 4 regulations) shortly after the publication date of the FFI agreement (T.D. 9809).

The Treasury Department and the IRS are also publishing regulations finalizing certain temporary regulations under chapters 3 and 61 and sections 3406 and 6402 and temporary regulations providing rules under chapter 3 shortly after the publication date of the FFI agreement (T.D. 9808). The FFI agreement references and incorporates certain provisions of the aforementioned regulations.