IRS Announces FATCA Filing Extension

On Thursday 16 April, the Internal Revenue Service (“IRS”) announced an extension to the deadline for Model 1 Foreign Financial Institutions in treaty countries to submit the information required under the Foreign Account Tax Compliance Act (“FATCA”).

The submission deadline has been extended in response to the COVID-19 virus. This means that financial institutions have the opportunity to report information regarding relevant account holders up to 31 December 2020.

This announcement comes after the increased deadline for Model 2 Foreign Financial Institutions which was declared on 25 March 2020. Similar to the extension of Model 1, a three-month extension was implemented bringing the deadline to 15 July 2020. In addition to this information, the IRS have detailed that an application for extension of time to file FATCA Form 8966 is not required to avail of the additional submission deadline.

As Ireland is a Model 1 jurisdiction, this is undoubtedly a welcomed development introduced by the IRS, assuming that the extension is supported by the Irish Revenue Commissioners. Model 1 jurisdictions are required to report to their local tax authorities whilst Model 2 jurisdictions report directly to the IRS. While the extension is welcomed at this time, any extension must be incorporated into the Irish tax return filing calendar of which the current reporting deadline for FATCA returns is 30 June. 

If you have any queries or wish to discuss anything further, please contact Mazars FS Tax.