FATCA exemption codes on Line 4
The second code box on Line 4 claims exemption from FATCA reporting, and it applies only to accounts maintained outside the United States. For the overwhelming majority of filers the correct entry is nothing at all.
Line 4: letters A to M, foreign accounts only
- What it claims
- Exemption from reporting under the Foreign Account Tax Compliance Act
- Valid values
- A single letter, A to M
- Scope
- Applies to accounts maintained outside the United States only
- Who uses it
- Institutional payees: banks, brokers, funds, REITs, government bodies, exempt organizations
- Correct entry for most filers
- Blank
- Covered by Part II
- Yes. Certification 4 states that any FATCA code entered is correct
Next to the FATCA box the form says: Applies to accounts maintained outside the United States. If your account is held with a U.S. institution, the box is not relevant to you regardless of your entity type.
What FATCA is, briefly
FATCA was enacted in 2010 to address U.S. taxpayers holding assets in foreign accounts. It obliges foreign financial institutions to identify accounts held by U.S. persons and report them, either to the IRS directly or to their own government under an intergovernmental agreement. Some U.S. entities sit outside the scope of that reporting: a government body, a publicly traded corporation, a registered fund. The FATCA code lets such an entity tell a foreign institution which exemption it relies on, so the institution can document why it did not report the account. Everybody else has nothing to put in the box.
All thirteen FATCA codes
| Code | Who it covers |
|---|---|
| A | An organization exempt from tax under section 501(a), or any individual retirement plan as defined in section 7701(a)(37) |
| B | The United States or any of its agencies or instrumentalities |
| C | A state, the District of Columbia, a U.S. commonwealth or territory, or any of their political subdivisions or instrumentalities |
| D | A corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i) |
| E | A corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i) |
| F | A dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards and options) registered as such under the laws of the United States or any state |
| G | A real estate investment trust |
| H | A regulated investment company as defined in section 851, or an entity registered at all times during the tax year under the Investment Company Act of 1940 |
| I | A common trust fund as defined in section 584(a) |
| J | A bank as defined in section 581 |
| K | A broker |
| L | A trust exempt from tax under section 664 or described in section 4947(a)(1) |
| M | A tax-exempt trust under a section 403(b) plan or a section 457(g) plan |
FATCA codes compared with exempt payee codes
| Exempt payee code | FATCA exemption code | |
|---|---|---|
| Format | Number, 1 to 13 | Letter, A to M |
| Exemption claimed | Backup withholding under IRC 3406 | FATCA reporting under chapter 4 |
| Geographic scope | Any account | Accounts maintained outside the United States only |
| Typical user | Corporations, exempt organizations, government bodies | Institutional payees with foreign accounts |
| Correct entry for an individual | Blank | Blank |
| Reference | All thirteen codes | The table above |
Code 1 and code A both cover section 501(a) organizations, and it is tempting to assume the lists run in parallel. They do not. Code 5 is "a corporation" while code D is narrower: a corporation whose stock is regularly traded on an established securities market. A private corporation that uses code 5 is not entitled to code D.
When to leave it blank
- You are an individual, sole proprietor or disregarded single-member LLC.
- Your account is with a U.S. institution.
- You are a private company, however large, that is not publicly traded and not in a group with a publicly traded corporation.
- You are not sure which code applies.
- The requester has not asked for one.
An unsupported letter in this box is a false certification, because Part II item 4 states that any FATCA code entered is correct. What you sign
Frequently asked questions
Do I need a FATCA code?
Almost certainly not. The box applies only to accounts maintained outside the United States, and only to certain institutional payees. Individuals and ordinary domestic businesses leave it blank.
What is FATCA?
The Foreign Account Tax Compliance Act, enacted in 2010. It requires foreign financial institutions to report on accounts held by U.S. persons, and requires certain U.S. persons to report foreign financial assets. The W-9 box lets an exempt payee tell a foreign institution that it need not report the account.
My U.S. bank asked for a FATCA code. Should I give one?
Ask why. The box is expressly for accounts maintained outside the United States. A domestic account should not need it, and some requesters include the field simply because it is on the official form.
Is the FATCA code the same as the exempt payee code?
They are separate boxes claiming separate exemptions. Exempt payee codes are numbers 1 to 13 and concern backup withholding; FATCA codes are letters A to M and concern FATCA reporting.
General information, not tax advice. This page explains a federal tax form in plain English. It is not legal, tax, or accounting advice, and W9Form.org is not affiliated with the IRS. Verify everything against the official Form W-9 page on IRS.gov and speak to a licensed professional about your own situation. How we source and review these pages.