Takeaways from SIFMA Global Tax Reporting Symposium

By David Bolner
taina tech, taina technology, global tax, globaltax, tax reporting, global tax reporting, sifma

SIFMA Global Tax Reporting Symposium

The SIFMA Global Tax Reporting Symposium took place in New York City on October 17. This meeting brought together regulators from the IRS and Treasury with financial service tax operations, tax advisory and corporate tax professionals. The conference was an in-person event.  It was great to see all who could attend and hear from industry thought leaders.


The panels featured an impressive group of experts and covered:

  • Tax year in review and hot topics
  • The new digital asset broker reporting rules which featured a representative from treasury, industry, advisory and vendor.
  • Global challenges impacting U.S. portfolio investors.
  • IRS audit initiatives with representatives from the IRS as well as tax advisory firms
  • A review of Qualified intermediary issues


From the robust panel discussion highlighted takeaways from the conference include:  

  • There are a number of new updates introduced in 2023 for tax forms, tax reporting and other areas, each should be reviewed to determine the impact to an organization.
  • With more IRS funding expect more enforcement.
  • The new draft digital assets rules are complex.  The IRS and Treasury are looking for comments to clarify numerous areas of the rules.
  • As a best practice, obtaining proper validated forms can relieve many other potential issues.


Session 1 – Year in review and hot topics

The year in review and hot topics covered a number of changes introduced in tax information reporting for 2023.  The discussion was broken into sections and covered.

  • Tax Forms - Draft Revisions to Form W-9, Form W -8EXP Updates, US TIN Relief Tax Reporting
  • Tax reporting- Electronic Filing of Form 1042, Form 1042 -S and Instructions Updates, PLR 202340003, Transmitter Control Code new process, Form 1099 - K & CESOP
  • Other- AM 2023 -003, QI Agreement, Section 1446(f) impact, Section 871 (m), Rev. Proc. 2023 -35 14, Rev. Rul. 2023 – 2


Organizations should review each of these “topics” and determine potential impacts. Some of the highlights from the discussion include changes for tax forms including:


1.Draft Revision W-9 – A discussion regarding the new line 3B on the draft W-9. 

The new box is used if the payee is a partnership, trust or estate that has any foreign partners, owners or beneficiaries and is providing the W-9 to a partnership, trust or estate.  Questions and uncertainty that raised around this new line included:  

  • Substitute forms - is this section needed when this is not applicable.  For instance, when a substitute form is sent to a broker that is not a flow through entity, this box would be less application but when sent from a fund, could be more applicable.
  • Sunset rules - What about the sunset rules for W-9? There are stated sunset rules for W-8s, do they apply to W-9s? Would the prior version W-9 form be valid to receive 6 months up to 6 months from the date publication of the new form?


2.W-8 EXP updates- new updates for EXP were discussed. The updates are:

  • Qualified foreign pension funds. Regarding qualified foreign pension funds claiming an exemption to withholding under section 1445, the regulations provide two alternatives for making the certifications of QFPF/QCE status – either on Form W-8EXP once it is revised, or by using the certification of non-foreign status.
  • Non-private foundation status. The instructions for line 13c have been updated for revisions to the supporting information required for an entity qualifying under section 501(c)(3) to represent that it is not a foreign private foundation.


3.IRS temporarily relieves FFIs from reporting US tins- notice 2023-11

US Tin discussions were around a Rev. Proc. 2023-11. IRS temporarily relieves foreign financial institutions from reporting US TINs for certain preexisting accounts, provided requirements are satisfied.  For tax years 2022, 2023 and 2024, the Internal Revenue Service (IRS) will not require FFIs to furnish US TINs for preexisting accounts if certain steps are taken.

For each US reportable account missing a US TIN, Reporting Model 1 FFIs are to take the following steps to be eligible for relief under the notice:

  1. Obtain and report the date of birth of each account holder that is an individual, as well as each controlling person, who is reported without a US TIN
  2. Annually request, beginning in calendar year 2023, any required missing US TIN for both new and preexisting accounts
  3. Annually search, beginning in calendar year 2023, electronically searchable data maintained by the reporting FFI for any missing required US TINs
  4. Report an accurate TIN Code for each applicable account.

Tin codes can be found under Q6, FATCA FAQs

Frequently Asked Questions FAQs FATCA Compliance Legal | Internal Revenue Service (irs.gov)


Session 2 – Digital Assets: Broker reporting

The second session was a discussion with a treasury representative, Erika Nijenhuis, regarding the recently released proposed Digital Asset reporting regulations.   The session reviewed the current timeline with the initial reporting due in 2026 on transactions from January 1, 2025.  What is included and not included with the current draft.


What was highlighted as is not included in the current draft, and additional guidance is needed is:

  • Transfer statement reporting (section 6045A(d)), Business cash reporting (section 6050I), Mining and staking rewards (Rev. Rul. 2023-14), Digital asset lending and wash sales (sections 1058 and 1091)

The session also featured a robust discussion regarding how without the multiple broker exception rule in the current draft, there can be a fact pattern where two brokers can report on one transaction.Treasury noted they are looking to avoid multiple reporting.


Throughout the discussion treasury made a numerous comment, what was noted from treasury:

  • The Treasury and the IRS are very open to comments and want to hear from industry.
  • The government is not looking for duplicate reporting and is looking for suggestions on how to avoid scenarios presented.
  •  The government is open to comments on stable coins, proposed regulations are not complete in this area.
  • The comment period may be extended as consideration of mounting requests from industry and other stakeholders, consideration can be given to late comments if they do not hold up final regulations.
  • 1099-DA should be expected later this year.
  • Treasury commented that the US will have to modify the domestic broker proposal because CARF requires different information. For example, modifications might require brokers to file information on customers treated as exempt foreign persons.


Session 3 - Global tax challenges impacting US portfolio investors.

Discussed during this session was:

  • Treaty updates from   Chile, Norway, Taiwan, Hungary, Russia.  Were reviewed.
  1. Hungary- Treaty ceases to have affect 1/1/24 for taxes withheld at source. Benefits of lower tax rates on certain income (e.g., interest, dividends), and from double taxation would expire with the termination.  This could give rise to double taxation without relief for individuals.
  2. Chile- approved by congress in 2023, not in force just yet going through the executive process.
  3. Russia- treaty suspended in 2023.
  4. Taiwan- bill passed the senate in Sept 2023 that aims to relieve the double-taxation burdens of American and Taiwanese tax residents and includes provisions to address permanent establishment and residency issues.
  • Tax initiatives outside of U.S and best practices were discussed, including:
  1. Trace in Finland- Finland is the first country to implement trace (treaty relief compliance enhancement) which includes tax at source on dividends in 2022.
  2. EU Faster program – a new initiative with an objective of the EU member states having a common withholding and tax reclaim approach with a January 1, 2027, target for launch.
  3. In the best practice discussions, the importance of obtaining proper documentation at the start, eliminating numerous potential challenges, was emphasized.    


Session 4 - IRS Audit Initiatives

The IRS Audit initiatives session featured representatives from the IRS, industry, and advisors.A main theme of the section was with new funding the IRS is hiring in the foreign payment practice area and with more people expect more audit efforts. There is also more emphasis on data and analytics and audits with broader examinations. For example, if one provides a W-8ECI, the IRS can look to see if a corresponding return was filed.

The foreign payment practice has looked at traditional banks and financial institutions, with greater compliance efforts will look also at technology companies, real estate companies and managed funds.


Session 5 – Qualified intermediaries.

The Qualified intermediary (QI) section discusses a number or areas including:

  • QI public list – The IRS is to publish a public list of QIs. The date when it will be available is unknown, Discussion involved resulting obligations to perform verifications to the list and potential transition relief.
  • New TCC numbers - the new TCC numbers and issue with for non-U.S. individuals who are acting on behalf of their non-U.S. employers obtaining the new number. In the interim, FIRE TCCs for Non-U.S. entities will remain available for filing Form 1042-S and Forms 1099 in FIRE.
  • Penalties for client requested 1042-S’ and potential resulting late penalties as a result.  Under the QI agreement clients can request a separate 1042-S within 2 years of a payment, this can result in late penalties to the issuer of the 1042-S for filing a late form.
  • More enforcement – with additional IRS funding and personnel will bring greater enforcement.


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