(104) Preexisting obligation(i) The term preexisting obligation means any account, instrument, contract, debt, or equity interest maintained, executed, or issued by the withholding agent that is outstanding on June 30, 2014. With respect to a participating FFI, the term preexisting obligation means any account, instrument, or contract (including any debt or equity interest) maintained, executed, or issued by the FFI that is outstanding on the effective date of the FFI agreement. With respect to a registered deemed-compliant FFI, a preexisting obligation means any account, instrument, or contract (including any debt or equity interest) that is maintained, executed, or issued by the FFI prior to the later of the date that the FFI registers as a deemed-compliant FFI pursuant to 1.14715(f)(1) and receives a GIIN or the date the FFI is required to implement its account opening procedures under 1.14715(f). Notwithstanding the previous provisions of this paragraph (b)(104)(i), a preexisting obligation includes an obligation held by an entity that is issued, opened, or executed on or after July 1, 2014, and before January 1, 2015, by or with a withholding agent or FFI that treats the obligation as a preexisting obligation. See 1.14712(a)(4)(ii), 1.14721(b)(2), and 1.14714(c)(3) for the due diligence requirements applicable to preexisting obligations for withholding agents and participating FFIs.
26 CFR § 1.1471-1
Scope of chapter 4 of the Internal Revenue Code. Sections 1.14711 through 1.14747 provide rules for withholding when a withholding agent makes a payment to an FFI or NFFE and prescribe the requirements for and definitions relevant to FFIs and NFFEs to which withholding will not apply. Section 1.14711 provides definitions for terms used in chapter 4 of the Internal Revenue Code (Code) and the regulations thereunder. Section 1.14712 provides rules for withholding under section 1471(a) on payments to FFIs, including the exception from withholding for payments made with respect to certain grandfathered obligations. Section 1.14713 provides rules for determining the payee of a payment and the documentation requirements to establish a payee's chapter 4 status. Section 1.14714 describes the requirements of an FFI agreement under section 1471(b) and the application of sections 1471(b) and (c) to an expanded affiliated group of FFIs. Section 1.14715 defines terms relevant to section 1471 and the FFI agreement and defines categories of FFIs that will be deemed to have met the requirements of section 1471(b) pursuant to section 1471(b)(2). Section 1.14716 defines classes of beneficial owners of payments that are exempt from withholding under chapter 4. Section 1.14721 provides rules for withholding when a withholding agent makes a payment to an NFFE, and defines categories of NFFEs that are not subject to withholding. Section 1.14731 provides definitions of the statutory terms in section 1473. Section 1.14741 provides rules relating to a withholding agent's liability for withheld tax, filing of income tax and information returns, and depositing of tax withheld. Section 1.14742 provides rules relating to adjustments for overwithholding and underwithholding of tax. Section 1.14743 provides the circumstances in which a credit is allowed to a beneficial owner for a withheld tax. Section 1.14744 provides that a chapter 4 withholding obligation need only be collected once. Section 1.14745 contains rules relating to credits and refunds of tax withheld. Section 1.14746 provides rules coordinating withholding under sections 1471 and 1472 with withholding provisions under other sections of the Code. Section 1.14747 provides the confidentiality requirement for information obtained to comply with the requirements of chapter 4. Any reference in the provisions of sections 1471 through 1474 to an amount that is stated in U.S. dollars includes the foreign currency equivalent of that amount. Except as otherwise provided, the provisions of sections 1471 through 1474 and the regulations thereunder apply only for purposes of chapter 4. See 301.14741 of this chapter for the requirements for reporting on magnetic media that apply to financial institutions making payments or otherwise reporting accounts pursuant to chapter 4.