We have come to expect that the U.S. Internal Revenue Service (IRS) will send the FATCA Responsible Officer (RO) an email to alert the RO a message has been posted on the IRS FATCA portal message board. However, in some circumstances, the IRS will only send a message to a Point of Contact (POC) not the RO. What Is a “Responsible Officer”? An RO is the individual in charge of overseeing a Participating Foreign Financial Institution’s (PFFI’s) compliance with the terms of the I

Foreign Financial Institutions (FFIs) participating in FATCA through an IGA or as a Participating FFI are required to undertake annual FATCA reporting on certain U.S. Persons. The FFI documents U.S. Persons by obtaining a U.S. Internal Revenue Service (IRS) Form W-9 or substitute Form W-9 from its customer. However, some U.S. Persons are exempt from being reported and may use the Form W-9 to document their exemption. Line 4 Line 4 of the Form W-9 is where a U.S. Person may li

On February 11, 2022, the British Virgin Islands International Tax Authority (BVI ITA) announced it will be establishing a registration fee of US$185.00 effective September 1, 2022. On May 18, 2022, the BVI ITA issued a Bulletin to inform entities the portal fee will be implemented later this year and not September 1, 2022, as previously announced. The fee will be charged for each entity which is required under BVI law to register in the BVI Financial Account Reporting System

On May 19, 2022, Alessio Evangelista, Associate Director of FinCEN’s Enforcement and Compliance Division spoke at the Chainalysis Links Conference. Mr. Evangelista emphasized the large amount of information available to Virtual Asset Service Providers (VASPs) and suggested “VASPs proactively adopt and uphold high standards for compliance.” What Is FinCEN? The U.S. Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of the Treasury. FinCEN’s goal i

Certain entities may register in the IRS FATCA portal and, upon registration approval, receive a Global Intermediary Identification Number (GIIN). For some entities, the FATCA portal registration process involves the entity entering into an FFI Agreement with the IRS and submitting certain certifications. If the entity fails to submit these certifications, their IRS FATCA account may turn from Approved to Terminated. But you can reverse this status! IRS FATCA Certifications

In many jurisdictions such as the U.S., there are laws dictating when a financial institution must consider a customer’s financial account to be dormant. Each state in the U.S. has laws that govern when accounts are considered inactive and/or abandoned. However, what if you are applying FATCA in a jurisdiction without such clear laws or regulations? FATCA Regulations FATCA regulations provide tiered guidance in defining a dormant account for accounts that are not a cash value

Very surprising admission by the IRS Commissioner. Written Testimony of Charles P. Rettig, Commissioner Internal Revenue Service before the House Ways and Means Committee, Subcommittee on Oversight on the Filing Season and IRS Operations (March 17, 2022) "Because of our current funding and staffing limitations across our enforcement functions, we are forced to make difficult decisions regarding priorities, the types of enforcement actions we employ, and the service we offer.

The Bahamas Competent Authority announced the FATCA and Common Reporting Standard (CRS) portal will open for FATCA and CRS registration and submissions on Monday, July 18, 2022 at 9 AM EDT. The portal will close on Friday, August 26, 2022 at 5PM EDT. Financial Institutions (FIs) with FATCA and CRS reporting obligations that miss the August 26, 2022 portal deadline will need to contact the Bahamas Competent Authority at helpdesk@taxreporting.finance.gov.bs or information@taxr

On February 23, 2022, the Inland Revenue Authority of Singapore (IRAS) updated its IRAS FAQs on the Foreign Account Tax Compliance Act (FATCA). Specifically, IRAS updated FAQ B.7 dealing with reporting tax identification numbers (TINs). The FAQ is: "How should a Reporting SGFI report TINs of Foreign Entity Account Holders (where Entity Account Holder is not a U.S. Person such as in the case of a Passive NFFE)? We have confirmed that the Entity Account Holder Type is either FA

On February 21, 2022, the British Virgin Islands International Tax Authority (BVI ITA) announced the BVI Financial Account Reporting System (BVIFARS) will be offline starting Monday, February 21, 2022 until further notice. The BVI ITA expects to provide an update regarding the portal during the week of February 21. The BVI ITA also provided a reminder regarding the mandatory inclusion of tax identification numbers (TINs) in FATCA reporting. FATCA TIN Reporting As part of a Fi

On February 11, 2022, the British Virgin Islands International Tax Authority (BVI ITA) announced it will be establishing a registration fee of US$185.00 effective September 1, 2022. The fee will be charged for each entity which is required under BVI law to register in the BVI Financial Account Reporting System (BVIFARS). Entities register in BVIFARS to comply with BVI reporting under the Common Reporting Standard (CRS), Foreign Account Tax Compliance Act (FATCA) and Country-b

The Isle of Man Income Tax Division published updated versions of FATCA and Common Reporting Standard (CRS) guidance notes. The updated documents may be found by clicking on the below links: The International Tax Compliance (United States of America) Regulations 2014, as amended Application of FATCA for Isle of Man Financial Institutions - UPDATED 27 January 2022 - Guidance Note GN 55 The Common Reporting Standard Isle of Man Regulations, Application of the CRS for Isle of Ma

On January 27, 2022, Guernsey Revenue Service announced an extension for reporting the failure to obtain a valid self-certification. The first reporting date has been extended from January 31, 2022 to March 31, 2022 for both new and pre-existing accounts. Self-Reporting Failed Self-Certs If a Financial Institution (FI) has not been able to validate a self-certification for a New Account within 90-days of the account being opened, the FI must report the account to the Guernsey

On December 24, 2021, Guernsey Revenue Service issued a bulletin discussing mandatory FATCA and Common Reporting Standard (CRS) registration for all Guernsey financial institutions. The Guernsey Revenue Service makes clear that effective January 1, 2022, FATCA and CRS registration in IGOR is mandatory even if the financial institution does not have a reporting obligation. The deadline for registration is February 28, 2022. Thereafter, a Non-Reporting FI (NRFI) will have the c

On December 17, 2021, Guernsey Revenue Service issued a bulletin discussing compliance measures it may take against a Financial Institution (FI) with potential significant failings in meeting its FATCA and/or CRS obligations. Relevant Review Factors Guernsey provided the below list of nine factors it will take into consideration in determining if it will implement compliance measures against an FI: “whether the non-compliance issue is of a significant seriousness and risk to

Singapore recently increased the penalties for both FATCA and Common Reporting Standard (CRS) non-registration and non-filing offenses. As of November 16, 2021, the penalties are SGD$5000 (approximately US$3647) upon conviction, and a further fine of SGD$100 (approximately US$73) per day for a continuing offense. FI Obligations Singapore Financial Institutions (FIs) have the following obligations under FATCA and CRS: Register for FATCA and CRS with IRAS. Perform FATCA and CRS

The Bahamas Competent Authority announced the FATCA and Common Reporting Standard (CRS) portal is now open for FATCA and CRS registration and submissions. Additionally, Financial Institutions (FIs) are able to submit corrections to previous filings for non-U.S. tax identification numbers (TINs). To access the portal, click here. The portal will close on Friday, January 14, 2022 at 5 PM EST. After the portal closes, FIs with FATCA or CRS reporting obligations should contact th

The IRS announced the Public Key for FATCA filing will expire on December 3, 2021. For those financial institutions (FIs) who submit their FATCA reporting directly to the U.S. Internal Revenue Service (IRS), it is critical to determine if you have downloaded the IRS’ new public key and checked to see if your digital certificate is current. What Is IDES? Certain FIs transmit data directly to the IRS through the International Data Exchange Service (IDES). Depending on the amoun

On September 13, 2021, the Guernsey Revenue Service (GRS) posted FATCA and CRS legislative and regulatory changes stemming from the July 15, 2021 approval of the Income Tax (Guernsey) (Amendment) Ordinance, 2021, (the Ordinance). Onsite Visits The Ordinance provides the legal basis for GRS to undertake onsite visits to review a financial institution’s (FI’s) FATCA and/or CRS compliance. If GRS does not obtain consent from the FI or provide at least seven days written notice t

The Mauritius Revenue Authority (MRA) announced the due date to submit FATCA and Common Reporting Standard (CRS) reporting to the MRA has been extended from July 31, 2021, to August 16, 2021. To contact the MRA FATCA/CRS unit directly: +230 207 6000 or via email at fatcacrsunit@mra.mu. For assistance, please contact me via my contact page or at elizabeth@elizabethmcmorrowlaw.com. #Mauritius #FATCA #CRS #Reporting