In Notice 2016-8, the IRS announced that the Treasury Department and the Internal Revenue Service intend to amend the regulations under chapter 4 in order to modify the date for submitting to the IRS the preexisting account certifications required for Reporting Model 2 FFIs. According to the amended requirements, the preexisting account certification must be submitted to the IRS at the same time that the FFI is required to submit its first periodic certification of compliance. This means, for example, that a participating FFI or Reporting Model 2 FFI that has an FFI agreement with an effective date of June 30, 2014 has to submit the preexisting account certification by July 1, 2018 instead of by August 29, 2016.
However, the changes to submitting the preexisting account certification do not affect the deadlines to complete the due diligence procedures for preexisting accounts, and FFIs will therefore be required to certify to the completion of those procedures within the time required.
Equally, the IRS announced that the chapter 4 regulations will be amended to provide that Local FFIs and restricted funds must submit their one-time certifications regarding preexisting accounts at the same time that they submit the first periodic certification of registered deemed-compliant FFIs. The chapter 4 regulations will also be modified to provide that registered deemed-compliant FFIs must provide the periodic certification of registered deemed-compliant FFI status on or before July 1 of the calendar year following the end of the certification period.
Finally, the IRS intends to amend the regulations to provide that, with respect to calendar year 2015, a participating FFI, reporting Model 2 FFI, or registered deemed-compliant FFI is not required to report gross proceeds paid to or with respect to an account held by a nonparticipating FFI.