US IRS updates FATCA FAQs on reporting deadlines and nil reporting

New frequently asked questions (FAQs) were posted to the US IRS’s FATCA website on March 24 concerning reporting deadlines and nil reporting, as follows:

Q: Are filers of Form 8966 required to file a nil report?

A:  A direct reporting NFFE (and a sponsoring entity of a direct reporting NFFE) is required to file a Form 8966 to declare that it has no substantial U.S. owners for the calendar year. For additional information, please read FAQ C19 on the IDES FAQ page.

Q: When is Form 8966 due for reporting with respect to calendar year 2014 for participating FFIs and Reporting Model 2 FFIs?

A:  Under an FFI Agreement, the Form 8966 is due on or before March 31 of the year following the end of the calendar year to which the form relates.  Under the Instructions for Form 8966, for reporting with respect to calendar year 2014 only, an automatic 90-day extension of time to file Form 8966 is provided to filers of Form 8966 (paper and electronic).  This automatic extension of time is provided without the need to file any form or take any action.  The Instructions for Form 8966 state that the automatic 90-day extension of time is not available for Reporting Model 2 FFIs reporting on a Non-Consenting U.S. Account.  Accordingly, a filer (other than Reporting Model 2 FFIs reporting on a Non-Consenting U.S. Account) with a filing deadline of March 31, 2015, has until June 29, 2015, to submit Forms 8966.

Reporting Model 2 FFIs reporting on a Non-Consenting U.S. Account should refer to the applicable Model 2 IGA for the due dates for those filings.  The IRS recognizes that FFIs will be using the IDES system for the first time and FFIs are currently testing and adapting to the new system.  Therefore, with respect to calendar year 2014, Reporting Model 2 FFIs filing Form 8966 with respect to Non-Consenting U.S. Accounts will not be treated as being in significant non-compliance under their applicable Model 2 IGAs as long as such FFIs are making good faith efforts to comply with their reporting obligations and reporting is completed within 90 days after the applicable filing deadline (taking into account any other extensions already provided).

Up-to-date answers to frequently asked questions as well as links to useful information relating to using IDES is available on the IRS website at FATCA IDES Technical FAQs.  Additional information can be found on the IDES support page, and sample data preparation files can be found on GitHub.

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