FATCA Report & Information, Form 8966 (2023)

The FATCA Report, officially known as Form 8966, is a document filed by specific foreign financial institutions (FFIs) to report information about certain U.S. accounts and account holders to the Internal Revenue Service (IRS). This report is crucial for implementing the Foreign Account Tax Compliance Act (FATCA), which aims to combat tax evasion by U.S. citizens and residents using foreign accounts.

Who Must File?

A. Participating Foreign Financial Institutions (PFFIs): These are foreign banks, investment firms, and other financial institutions that agree to comply with FATCA.

B. U.S. Branches of PFFIs not treated as U.S. persons: These branches operate in the US but are legally separate entities.

C. Registered Deemed Compliant Foreign Financial Institutions (RDC FFIs): These institutions meet specific criteria and agree to report certain information to the IRS.

D. Limited Branches or Limited Foreign Financial Institutions (FFIs): These smaller institutions face limited reporting requirements.

E. Reporting Model 2 FFIs: These institutions are obligated to report specific account information but are not full PFFIs.

What Information is Reported?

  • Details of accounts held by US taxpayers, including account numbers, balances, and income.
  • Information about substantial US owners of passive non-financial foreign entities (NFFEs).
  • Specified US persons with ownership interests in certain foreign financial institutions (ODFFIs).

Key Points About Form 8966:

  • Due date: March 31st of the year following the reporting year (unless extended).
  • Filing options: Electronic filing is mandatory for financial institutions; paper filing is an option for others.
  • Penalties: Failure to file or file accurately can lead to significant penalties.

For the current year's Form 8966, click here.