n-18-20.pdf

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Update on Jurisdictions Included on the IRS List of Jurisdictions That Do Not Issue
Foreign TINs

Notice 2018-20

# I. PURPOSE

This notice announces that the Internal Revenue Service (IRS) will expand the list of
jurisdictions that do not issue taxpayer identification numbers to their residents,
described in section IV.B.3.ii of Notice 2017-46, 2017-41 I.R.B. 275, to include
jurisdictions that make a request to the U.S. competent authority to be included on such
list. The Department of the Treasury (Treasury Department) and the IRS intend to
amend §1.1441-1T(e)(2)(ii)(B) to incorporate the guidance described in this notice.

# II. BACKGROUND

On January 6, 2017, the Treasury Department and the IRS published temporary
regulations under chapter 3 of the Internal Revenue Code (T.D. 9808, 82 F.R. 2046)
(temporary regulations). Section 1.1441-1T(e)(2)(ii)(B) of the temporary regulations
provides that, beginning January 1, 2017, a beneficial owner withholding certificate
provided to document an account maintained at a U.S. branch or office of a withholding
agent that is a financial institution is required to contain the taxpayer identification
number issued by the account holder's jurisdiction of tax residence (Foreign TIN) in
order for the withholding agent to treat the withholding certificate as valid. Section
1.1441-1T(e)(2)(ii)(B) further provides that for withholding certificates associated with
payments made on or after January 1, 2018, an account holder that does not provide a
Foreign TIN must provide a reasonable explanation for its absence in order for the
withholding certificate not to be considered invalid.

On September 25, 2017, the Treasury Department and the IRS released Notice
2017-46, which provides guidance modifying the requirements of §1.1441-1T(e)(2)(ii)(B)
for withholding agents to obtain and report Foreign TINs of their account holders.
Among other things, Notice 2017-46 extends the date on which the requirement to
obtain Foreign TINs takes effect to January 1, 2018; provides transitional rules for
withholding agents obtaining a Foreign TIN for an account holder documented with an
otherwise valid Form W-8 that was signed before January 1, 2018; and provides
exceptions to obtaining Foreign TINs for certain categories of account holders. In
particular, Notice 2017-46 provides that under regulations to be published at a later
date, withholding agents will not be required to obtain a Foreign TIN (or a reasonable
explanation for why an account holder has not been issued a Foreign TIN) for an
account held by a resident of a jurisdiction that has been identified by the IRS on a list
of jurisdictions that do not issue Foreign TINs to their residents (No TIN list). Notice
2017-46 identifies three such jurisdictions, and provides that a list of all such
jurisdictions will be made available at www.irs.gov/FATCA and will be updated as
necessary. In December 2017, the No TIN list was posted by the IRS and is available
at https://www.irs.gov/businesses/corporations/list-of-jurisdictions-that-do-not-issue-
foreign-tins.

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# III. EXPANSION OF NO TIN LIST TO INCLUDE JURISDICTIONS THAT REQUEST TO BE ON THE LIST

Since the release of Notice 2017-46, some jurisdictions with laws that restrict the
collection or disclosure of the Foreign TINs of their residents have requested that their
residents not be required to provide Foreign TINs to withholding agents for purposes of
§1.1441-1T(e)(2)(ii)(B). In response to these requests, the Treasury Department and
the IRS have decided to expand the No TIN list to include jurisdictions that request to be
on the list, even if the jurisdictions issue Foreign TINs to individuals or entities resident
in such jurisdictions. To request to be added to the No TIN list, a jurisdiction's
competent authority should contact the U.S. competent authority. As of the date of this
notice, the following jurisdiction will be included on the No TIN list:

# Australia

The Treasury Department and the IRS intend to amend §1.1441-1T(e)(2)(ii)(B) to
provide that withholding agents are not required to collect or report Foreign TINs of
residents in the jurisdictions on the No TIN list, including the jurisdiction identified
above.

# IV. TAXPAYER RELIANCE

Before the issuance of the amendment to the temporary regulations described in
section III of this notice, taxpayers may rely on the provisions of this notice regarding
the content of the amendment and the inclusion of Australia (and any jurisdictions
subsequently included) on the No TIN list.

# V. EFFECT ON OTHER DOCUMENTS

This notice supplements Notice 2017-46.

# VI. DRAFTING INFORMATION

The principal author of this notice is Charles Rioux of the Office of Associate Chief
Counsel (International). For further information regarding this notice, contact Charles
Rioux at (202) 317-4992 (not a toll-free call).