On October 11, 2022, the IRS announced that it has identified Sponsoring Entities that do not have Sponsored Entities registered in the FATCA Registration System. A Sponsored Entity is a Sponsored FFI or Sponsored Direct Reporting NFFE. The IRS will be contacting the Sponsoring Entities identified by posting a message on the Sponsoring Entity’s FATCA registration system message board. The IRS is requesting that Sponsoring Entities either cancel their FATCA agreement, if they do not meet the requirements for being a Sponsoring Entity, or if the entity has Sponsored FFIs or Sponsored Direct Reporting NFFEs, proceed with registering the Sponsored Entities in the system.
If no action is taken within 60 days of the notification posted to the message board, the Sponsoring Entity will be removed from the published FFI List and may be subject to 30% withholding.
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