IRS Updates FAQs to Address FATCA Reports (Form 8966)
The IRS updated its technical FAQs about the International Data Exchange Services ("IDES") system.
First, the IRS confirmed that directly reporting non-financial foreign entities and their sponsoring entities must file nil reports if they have no substantial U.S. owners for the calendar year. Second, the IRS confirmed that, under the Instructions for the FATCA Report, participating foreign financial institutions ("FFIs") (other than Reporting Model 2 FFIs reporting on a non-consenting U.S. account) must file their FATCA Reports with respect to the 2014 calendar year by June 29, 2015.
By contrast, the deadline for Reporting Model 2 FFIs reporting on a non-consenting U.S. account is determined by reference to the applicable Model 2 IGA. The FAQ, however, provides a transitional rule for applicable Reporting Model 2 FFIs, and notes that the IRS will view Reporting Model 2 FFIs that file their FATCA Reports within 90 days of the IGA filing deadline (including any other applicable extensions) as complying substantially with their obligation to timely file the FATCA Report.