The Internal Revenue Service (IRS) today announced an extension for certain jurisdictions to report 2019 information under the Foreign Account Tax Compliance Act (FATCA). Under the guidance, Model 1 IGA jurisdictions will have until December 31, 2020 to provide their data. The IRS has also issued other recent FATCA-related guidance noted below.  

FATCA Reporting Delays

The IRS explains in Question 5 on its FATCA Reporting FAQ page:

Q5:  Art. 3(5) of the Model 1 IGA generally provides that FATCA data must be exchanged on or before September 30 after the end of the calendar year to which the information relates (i.e., September 30, 2020 for tax year 2019). Due to the COVID-19 virus, will a Model 1 IGA jurisdiction be granted an extension of time to provide the FATCA data for tax year 2019?

Yes.  In response to the COVID-19 virus, the Internal Revenue Service will provide an extension of time for Model 1 IGA jurisdictions to provide their FATCA data for tax year 2019 to the U.S. Competent Authority. Model 1 IGA jurisdictions will have until December 31, 2020 to provide their data, although a jurisdiction may send tax year 2019 data prior to that date.

In a related move, the IRS late last month extended the deadline for a Reporting Model 2 Foreign Financial Institution (FFI) or a Participating FFI to file FATCA Report (Form 8966). The IRS extended this March 31, 2020 deadline to July 15, 2020.

Question 4 on the IRS FATCA Reporting FAQ page explains: 

Q4.  Due to the COVID-19 virus, will foreign financial institutions (FFI) filing the FATCA Report (Form 8966) to the IRS pursuant to the terms of a Model 2 IGA or the FFI agreement (i.e., a Reporting Model 2 FFI or Participating FFI) be granted an extension of time to file the FATCA Report which is generally due on March 31?

Yes.  In response to the COVID-19 virus, the Internal Revenue Service will provide an extension of time for a Reporting Model 2 FFI or a Participating FFI to file the FATCA Report (Form 8966) to the IRS. The filing deadline for the FATCA Report (Form 8966) will be extended from March 31, 2020 to July 15, 2020.  Form 8809-I, Application for Extension of Time to File FATCA Form 8966 will not be required for this extension.

FATCA Registration Status

Yesterday, the IRS issued a new FAQ on FATCA registration terminations.

Question 18 in the Registration Update category on the FATCA FAQs General page explains:

Q18. Why did my registration status change to Agreement Terminated? What can I do?

If your registration status is "Agreement Terminated," it is because the IRS has identified an issue with your registration. Please review your registration message board for any messages regarding why your registration status was changed to "Agreement Terminated."

Entities that have their registrations terminated and Global Intermediary Identification Number (GIIN) removed from the Foreign Financial Institution (FFI) List due to non-compliance with the FATCA certification requirement must not re-register for a new GIIN in the FATCA Registration System. The IRS reviews all registrations and entities that are found to have re-registered for a new GIIN after being terminated will not maintain their "Approved" registration status.

If an entity requires its GIIN to be reinstated, it must contact the IRS' Foreign Payments Practice (FPP) by mail or email (information provided in the events of default notice on the FATCA registration message board) to apply for reinstatement and follow the outlined Procedures for FATCA Certification Event of Default Notices.

FATCA Certification Event of Default Notices

The IRS Large Business and International (LB&I) Division issued a directive to its employees on procedures for FATCA certification event of default notices. It describes "Foreign Payments Practice's (FPP) process for addressing noncompliance with the FATCA certification requirements," the IRS explains. "These procedures outline the Event of Default Notice timeline, the request for reconsideration process, the appeals process, and remediation plan guidance."

The 11-page text of the IRS directive is posted here.

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