IRS Punts Foreign Account Compliance Certification to December

Certain financial institutions now have until Dec. 15 to certify that they have been compliant with U.S. account holder reporting requirements.

The postponement—from July 1—was announced in an update to FAQs on Foreign Account Tax Compliance Act rules in response to disruptions caused by the coronavirus pandemic. The FATCA rules require certain U.S. taxpayers holding financial assets outside the U.S. to report the assets to the IRS.

• The new deadline will automatically appear on the FATCA registration page, according to the FAQ.
• Foreign financial institutions must periodically certify with the IRS that they have remained compliant with FATCA rules over a three-year period.
• FFIs are required under FATCA rules to report U.S. account holders either directly through the IRS, or through a government intermediary, known respectively as Model 1 and Model 2 countries.