FATCA Report & Information, Form 8966

The Foreign Account Tax Compliance Act (FATCA) requires certain foreign financial institutions (FFIs) and other entities to report information about U.S. accounts to the IRS. Form 8966 serves as the primary reporting tool for this crucial information exchange.

Who Must File Form 8966?

A. Participating Foreign Financial Institutions (PFFIs): These are FFIs that have agreed to comply with FATCA by entering into an agreement with the U.S. government.

B. U.S. Branches of PFFIs not treated as U.S. persons: These branches are considered separate entities from their parent institutions for FATCA purposes.

C. Registered Deemed-Compliant Foreign Financial Institutions (RDC FFIs): These FFIs are located in jurisdictions deemed to have substantially equivalent FATCA laws and regulations.

D. Limited Branches or Limited FFIs: These are specific types of FFIs with limited activities that may have simplified reporting requirements.

E. Reporting Model 2 FFIs: These are FFIs that are not PFFIs or RDC FFIs but choose to report directly to the IRS under Model 2 of FATCA.

What Information is Reported on Form 8966?

  • Account information: This includes account numbers, balances, and types of accounts held by U.S. persons.
  • Owner information: This includes names, addresses, and tax identification numbers of U.S. account holders.
  • Compliance information: This details the FFI's compliance efforts with FATCA regulations.

Key Points to Remember:

  • Electronic Filing: All FFIs (except those granted a waiver) must file Form 8966 electronically.
  • Due Dates: Filing deadlines vary depending on the FFI's reporting model and calendar year.
  • Penalties for Non-Compliance: Failure to file or file inaccurate information can result in significant penalties.