This regulation provides additions to final regulations issued under chapter 4 of subtitle A (sections 1471 through 1474) of the Internal Revenue Code of 1986, commonly known as the Foreign Account Tax Compliance Act, or FATCA. In Treasury Decision 9610 (78 FR 5874), the Treasury Department (Treasury) and the IRS issued final regulations under chapter 4 regarding reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on payments to FFIs and other foreign persons. The final regulations issued in TD 9610 affect persons making certain U.S.-related payments to FFIs and other foreign entities and payments by FFIs to other persons. The IRS and Treasury are issuing this Notice of Proposed Rulemaking to add new verification requirements for FFIs that are "sponsoring entities" that perform chapter 4 obligations on behalf of other "sponsored" FFIs or Non-Financial Foreign Entities (NFFEs).