IRS Adds 3 Countries to Tax Data Exchange List

26 CFR 1.6049.00-00: Returns Relating to Payments of Interest

(Also: 1.3406.07-00 Exceptions to Backup Withholding)

December 2016 Supplement to Rev. Proc. 2014-64, Implementation of Nonresident Alien Deposit Interest Regulations

SECTION 1. PURPOSE

This revenue procedure supplements the listing in Section 3 of Revenue Procedure 2014-64, 2014-53 I.R.B. 1022, of the countries with respect to which the reporting requirement of §§ 1.6049-4(b)(5) and 1.6049-8(a) of the Income Tax Regulations applies, effective for interest paid on or after January 1, 2017.

This revenue procedure also supplements the listing in Section 4 of Revenue Procedure 2014-64, as previously supplemented by Rev. Proc. 2015-50, 2015-42 I.R.B. 583, and Rev. Proc. 2016-18, 2016-17 I.R.B. 635, of the countries with which the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) have determined that it is appropriate to have an automatic exchange relationship with respect to the information collected under §§ 1.6049-4(b)(5) and 1.6049-8(a).

SECTION 2. BACKGROUND

Sections 1.6049-4(b)(5) and 1.6049-8(a), as revised by TD 9584, require the reporting of certain deposit interest paid to nonresident alien individuals on or after January 1, 2013. Rev. Proc. 2012-24, 2012-20 I.R.B. 913, was published contemporaneously with the publication of TD 9584. Section 3 of that revenue procedure identified those countries with which the United States has in force an information exchange agreement, such that interest paid to residents of such countries must be reported by payors to the extent required under §§ 1.6049-4(b)(5) and 1.6049-8(a). Section 4 of that revenue procedure identified the countries with which the Treasury Department and the IRS had determined that it was appropriate to have an automatic exchange relationship with respect to the information collected under §§ 1.6049-4(b)(5) and 1.6049-8(a). Rev. Proc. 2012-24 was updated and superseded by Rev. Proc. 2014-64, Sections 3 and 4 of which contained updated lists of countries. Rev. Proc. 2014-64 was supplemented by Rev. Proc. 2015-50 and Rev. Proc. 2016-18, each of which added countries to the list in Section 4 of Rev. Proc. 2014-64. This revenue procedure supplements Rev. Proc. 2014-64 by adding Saint Lucia to the list of countries in Section 3 of Rev. Proc. 2014-64, and by adding Israel, Republic of Korea, and Saint Lucia to the list of countries in Section 4 of Rev. Proc. 2014-64.

SECTION 3. SUPPLEMENT TO SECTION 3 OF REV. PROC. 2014-64

Section 3 of Rev. Proc. 2014-64 is supplemented to read as follows:

The following are the countries with which the United States has in effect an income tax or other convention or bilateral agreement relating to the exchange of tax information within the meaning of section 6103(k)(4) pursuant to which the United 2 States agrees to provide, as well as receive, information and under which the competent authority is the Secretary of the Treasury or his delegate:

Section 4 of Rev. Proc. 2014-64, as supplemented by Rev. Proc. 2015-50 and Rev. Proc. 2016-18, is further supplemented to read as follows:

The following list identifies the countries with which the automatic exchange of the information collected under §§ 1.6049-4(b)(5) and 1.6049-8 has been determined by the Treasury Department and the IRS to be appropriate:

Rev. Proc. 2014-64, as supplemented by Rev. Proc. 2015-50 and Rev. Proc. 2016-18, is further supplemented.

SECTION 6. EFFECTIVE DATE

With respect to the additional country listed in Section 3, this revenue procedure is effective for interest paid on or after January 1, 2017.

SECTION 7. DRAFTING INFORMATION

The principal author of this revenue procedure is Jackie Bennett Manasterli of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Ms. Manasterli at (202) 317-6941 (not a toll-free call).