With the August revisions to the W-9, how is everyone handling the changes to their account agreements? Are you simply adding the following "The payee is exempt from FATCA reporting" to satisfy the Substitute Form W-9 requirements? What is everyone's view on when these changes should be made to the account agreements?

http://www.irs.gov/pub/irs-pdf/fw9.pdf

From page 3 of the new form under Exemption from FATCA reporting code: The codes apply to persons submitting this form for accounts maintained outside the United States by certain foreign institutions. Therefore, if you are only submitting this form for an account you hold in the US, you may leave this field blank.
It sounds like that language means that statement doesn't apply to our customers, so I don't think it needs added to our account agreements.

Ok,I'm trying to read this form and I'm not sure other than the one code asked for in my previous response would be left blank.

According to the instructions, all four certifications below must be on the substitute form.

Substitute Form W-9
You may develop and use your own Form W-9 (a substitute Form W-9) if its content is substantially similar to the official IRS Form W-9 and it satisfies certain certification requirements. You may incorporate a substitute Form W-9 into other business forms you customarily use, such as account signature cards. However, the certifications on the substitute Form W-9 must clearly state (as shown on the official Form W-9) that under penalties of perjury:
1. The payee's TIN is correct,
2. The payee is not subject to backup withholding due to
failure to report interest and dividend income,
3. The payee is a U.S. person, and
4. The payee is exempt from FATCA reporting.

http://www.irs.gov/pub/irs-pdf/iw9.pdf

So you have answered your own question.

Do you have another one?

I'm still not clear on how everyone is handling the changes to their account agreements and what everyone's view is on when these changes should be made to the account agreements?

what everyone's view is on when these changes should be made to the account agreements?

Try August 2013 when the new W-9 became effective for starters.

Do we need to make this change immediately as not required until January 2014. Our platform forms vendor is not sending new W-9 form until November release update. Is there a problem with this action?

I looked for guidance and that and came up empty. Hopefully, someone here has the answer to that.

?

I guess I am confused. The Form was revised as of August 2013. Why is there a question of when the use of the new form was or is required?

If you are confused, you must not understand the FATCA requirements. The W-9 was updated in preparation for the FACTA requirements that don't go into effect until July 1, 2014. Simply downloading and utilizing the new W-9 Form is not the issue. The issue is with the form as it's embedded into account agreements. It isn't so simple to change the account agreements (especially when you have a 3rd party vendor) involved.

The form was revised in August but the FATCA requirements as they pertain to new accounts do not go into effect until July of next year. Does anyone else not see the discrepancy here?

OK - seriously, unless you are an foreign financial institution (FFI), the addition of the FATCA (not FACTA) certification is all but meaningless.

Wow. I hope you are not bringing that attitude with you when conducting your "professional consultanting" services. If so, your clients are in trouble.

I'd suggest you read up on FATCA. There are implications (that are not meaningless) for U.S. financial institutions (USFIs) as well.

Yes there are, but not involving that specific certification. The question really revolves around why your forms vendor is so slow to adopt new forms? The proposal to modify the W-9 was released in February 2012. This should not have been a surprise to the vendor. NotDoneYet basically answered your question in the first answer to your original post. The certification is not really applicable to a US financial institution.

Yes there are, but not involving that specific certification.
That is clarified in the instructions to the form in the first paragraph:

http://www.irs.gov/pub/irs-pdf/iw9.pdf

It appears that your concerns really surround the question as to why your forms vendor is so slow to adopt new forms? The proposal to modify the W-9 was released in February 2012 and the draft form was released in May 2013. This should not have been a surprise to the vendor or the Bank.

NotDoneYet basically answered your question in the first answer to your original post. The certification is not really applicable to a US financial institution.

And like all things, you get what you pay for. While I enjoy participating on BOL, most of the other posters have realized that I have a very dry sense of humor. I guess I should not have been pointing out that a form that has an effective date of August 2013 is expected to be used when it was released?

We're in a forum to solicit opinions, so I see nothing wrong with providing your own opinion. Doesn't mean I agree with you but I respect and welcome the opinion of you and anyone else that would like to chime in.

Bump. I just attended a deposit compliance seminar put on by Get Technical and they told the group the new W-9 form must be in place in our account agreements for 7/1/14. Being new to compliance, I didn't quite follow the discussion so this post was helpful in spite of the 'give and take' it includes. I am now looking internally to see where we are on this. Hopefully, it's in place already!

If you use a substitute W-9, such as one integrated into signature card (from a forms vendor or created in-house), the new requirements should already be in place. Even if you aren't using a substitute W-9, there really isn't any reason why you should wait until the very last minute to use the new form since it has been available for quite some time.