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CHAPTER 4: ORGANIZATIONS The Defense Travel System (DTS) uses an organization structure. This organization structure serves as an identifier to process document routing, accounting, and reporting.
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Chapter 4 organizations refer to certain foreign entities that are subject to withholding on certain types of income under the Internal Revenue Code.
Chapter 4 organizations are generally required to be filed by foreign financial institutions (FFIs), including banks, investment funds, and certain insurance companies, that have U.S. account holders or receive certain U.S. source income.
To fill out chapter 4 organizations, FFIs must complete and submit Form 8966, also known as the FATCA Report, to the Internal Revenue Service (IRS) electronically. The form requires information about the FFI, its U.S. account holders, and reportable transactions.
The purpose of chapter 4 organizations is to ensure compliance with the Foreign Account Tax Compliance Act (FATCA), which aims to prevent U.S. taxpayers from hiding assets and income offshore.
Chapter 4 organizations must report information such as the name, address, and taxpayer identification number of the FFI, as well as information about its U.S. account holders, including their names, addresses, account numbers, and balances.
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