Form 8966, Foreign Account Tax Compliance Act (FATCA)

Use Form 8966 to report information with respect to certain U.S. accounts, substantial U.S. owners of passive non-financial foreign entities (NFFE), U.S. accounts held by owner-documented foreign financial institutions (FFI), and certain other accounts as applicable based on the filer’s chapter 4 status.

The IRS published instructions for the final Form 8966, Foreign Account Tax Compliance Act Report. This form will not apply to Model 1 inter-governmental agreements (IGAs) because financial institutions under these terms report on their US clients to their local tax authorities rather than directly to the IRS.

This new tax information reporting obligation is for many different entities, including:

  • Foreign financial institutions (FFIs) under a Model 2 IGA
  • Reporting Model 2 FFIs that are reporting certain amounts paid to nonparticipating FFIs
  • Sponsoring entities
  • Limited branches and FFIs
  • Qualified intermediaries (QIs), withholding foreign partnerships (WPs) and withholding foreign trusts (WTs)
  • Direct reporting nonfinancial foreign entities (NFFEs)
  • Participating FFIs (PFFIs)
  • U.S. branches of PFFIs not treated as a U.S. person
  • Registered deemed-compliant FFIs (RDCs)

 

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