Reporting Model 1 FFIs and reporting Model 2 FFIs are two different methods for Foreign Financial Institutions to report payments made to non-U.S. entities and non-U.S. individuals. Reporting Model 1 FFIs report the information directly to the IRS, while reporting Model 2 FFIs report the information to their withholding agents, who then report the information to the IRS. Both models have different due diligence requirements and reporting obligations.