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Notice 2013-69 also sets out that an Entity will be allowed to sponsor one or more Direct Reporting NFFEs (Sponsored Direct Reporting NFFEs) and report for them.
Sales promotion is an important component of a company's marketing communication strategy along with advertising, public relations, and personal selling.
A NFE can be an Active NFE if it meets any of the following criteria: The USA published a notice - Notice 2013-69 that announced the introduction of a new category of Passive NFFE – a Direct Reporting NFFE.
The US Regulations at §1.1472-1(c)(3) describes a Direct Reporting NFFE and explains how it is treated.
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As the name suggests, a Direct Reporting NFFE reports directly to the IRS certain information about its direct and indirect substantial US owners.