Recalcitrant account holders
Recalcitrant account holders(1) Scope. This paragraph (g) provides rules for determining when an account holder of a participating FFI or registered deemed-compliant FFI is a recalcitrant account holder. Paragraph (g)(2) of this section defines the term recalcitrant account holder. Paragraphs (g)(3) and (4) of this section provide timing rules for when an account holder will begin to be treated as a recalcitrant account holder by a participating FFI and when an account holder will cease to be treated as a recalcitrant account holder by such institution. For rules for determining the holder of an account, see paragraph (a)(3) of this section. For the withholding requirements of an FFI with respect to its recalcitrant account holders, see paragraph (f) of this section and 1.14714(b). For the reporting requirements of an FFI with respect to its recalcitrant account holders, see 1.14714(d)(6), and, for the reporting required with respect to payments made to such account holders, see 1.14741(d)(4)(iii). A U.S. branch treated as a U.S. person shall apply the presumption rules of 1.14713(f) (for foreign entity account holders) and chapter 3 or 61 (for individual payees) to determine the status of a payee if it cannot reliably associate a payment made to the payee with valid documentation and does not apply this paragraph (g).
(1)Scope.This paragraph (g) provides rules for determining when an account holder of a participating FFI or registered deemed-compliant FFI is a recalcitrant account holder.Paragraph (g)(2)of this section defines the term recalcitrant account holder. Paragraphs (g)(3) and (4) of this section provide timing rules for when an account holder will begin to be treated as a recalcitrant account holder by a participating FFI and when an account holder will cease to be treated as a recalcitrant account holder by such institution. For rules for determining the holder of an account, seeparagraph (a)(3)of this section. For the withholding requirements of an FFI with respect to its recalcitrant account holders, seeparagraph (f)of this section and 1.14714(b). For the reporting requirements of an FFI with respect to its recalcitrant account holders, see 1.14714(d)(6), and, for the reporting required with respect to payments made to such account holders, see 1.14741(d)(4)(iii). A U.S. branch treated as a U.S. person shall apply the presumption rules of 1.14713(f) (for foreign entity account holders) and chapter 3 or 61 (for individual payees) to determine the status of a payee if it cannot reliably associate a payment made to the payee with valid documentation and does not apply this paragraph (g).