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The Comply Catch-Up – February 2021 Issue 3

The Comply Catch-Up February 2021

What’s new with Comply?

Exciting news from us this month as we bring on board our newest member of the Comply team, Carolyn Luke. Carolyn brings with her over 20 years of experience within the financial services industry. She joins us from TAINA Technology where she was responsible for New Business Development and prior to that, eleven years at GlobeTax Inc, selling Cross Border Tax Reclamation outsourcing services along with US Tax Information Reporting and W-form validation. Carolyn is a subject matter expert, selling Form Validation and Reporting Services globally for Chapter 3 and 4 as well as for CRS. She will be focused on expanding our Business Development and Marketing Strategy.

We are pleased to announce we are sponsoring the AI in Financial Services Forum from March 23rd to 24th. Stop by our virtual booth for a demo of Comply and some great giveaway items. Register today!

We are also pleased to announce we are sponsoring the 2021 Tax Reporting & Withholding Virtual Conference held by the Tax Reporting Group! This is another exciting opportunity to “virtually” meet our team and discuss how Comply could benefit you. The conference will be held from Tuesday, April 27- to Wednesday, April 28, 2021. Make sure to Register here for two days of all the need-to-know tax reporting information from IRS and industry experts.

On the product side, we continue to innovate adding further developments and enhancements to our mobile E-Forms app, currently in Beta testing. Our true mobile app (not just responsive!) will give users the ability to electronically submit Forms W-8 and W-9, and enable our clients to seamlessly receive these pre-checked forms into our Comply Admin application where real-time validation can take place against the electronic books and records. If you need to handle 100’s, 1000’s, or even 10’s of thousands of Forms W-8, W-9 or Self-certificates click here and sign up to our beta release program and be part of the journey! Sign up to our beta release program and be part of the journey!

What you need to know this February

In January, the OECD published Updated Guidance on Tax Treaties.  Due to the many restrictions brought about by COVID-19 during 2020 and now continuing into 2021, the OECD Secretariat issued guidance on the impact of the pandemic on tax treaties.  It is important to remember that the guidance represents the view of the Secretariat on the interpretation of the provisions of tax treaties.  This means that each jurisdiction may adopt its own guidance to provide tax certainty to taxpayers.

The guidance addresses the following:

  • Concerns regarding permanent establishment.
  • Concerns related to change of residence for entities and individuals including the application of the tie-breaker rules to dual residents where individuals were restricted from travel. Also, the potential change in the “place of effective management” of a company as a result of a relocation, or inability to travel, of board members or other senior executives.
  • Concerns related to income from employment including stimulus packages, telecommuting, and other changes to employment during this unprecedented time.

On January 28, 2021, the IRS published Instructions for Form 5471, which include significant changes.

In accordance with Rev. Proc. 2019-40 (, the new Instructions address revisions related to Category 5 filers. As a result of the repeal of Code section 958(b)(4), Rev. Proc. 2019-40 generally provides relief to U.S. persons that directly, indirectly, or constructively own stock in non-U.S. corporations that are Controlled Foreign Corporations.

Filers must use these new Instructions with the December 2020 revision of Form 5471 and separate Schedules E, H, J, P, Q, and R; the December 2019 revision of separate Schedule I-1; the December 2018 revision of Schedule M; and the December 2012 revision of separate Schedule O.

There are changes throughout the new instructions based on the final regulations under section 960. Filers must review these Instructions carefully as there are many revisions and changes.

Form 1042 / 1042-S Key Dates & Reminders

  • Forms 1042-S, whether filed on paper or electronically, must be filed with the IRS and furnished to the recipient of the income by March 15, 2021.
    • A 30-day extension of time to file Form 1042-S may be requested by filing a Form 8809, Application for Extension of Time to File Information Returns.
    • A 30-day extension of time to furnish recipient statements may be requested by sending a letter to the IRS.

  • Form 1042 must be mailed to the IRS by March 15, 2021
    • An extension of time may be requested by submitting Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns. Form 7004 does not extend the time for payment of tax.


FATCA / CRS Key Dates & Reminders – Select Jurisdictions


  • The Australian Taxation Office (ATO) published an update announcing the extension of the deadline to submit 2020 reporting year FATCA reports to August 31, 2021. The deadline has been extended to allow RFI’s additional time to obtain missing TINs from account holders and modify reporting systems to enable reporting of codes. This extension does not apply for the submission of CRS reports.


British Virgin Islands

  • The International Tax Authority (ITA) of the BVI advised that the BVI Financial Account Reporting System (BVIFARS) Portal is open and has been updated to accept FATCA, CRS, and CbC enrolments and reporting submissions.
  • Enrolment and Submission Deadlines for FATCA and CRS are as follows:
    • Annual Enrolment deadline for FATCA: April 1, 2021
    • Annual Reporting Submission deadline for FATCA: May 31, 2021
    • Annual Enrolment/Notification deadline for CRS: April 30, 2021
    • Annual Reporting Submission deadline for CRS: May 31, 2021


  • The Tax Agency of Denmark published an updated TY2020 FATCA reporting guide. The guide indicates the following deadlines:
    • Test reporting is available throughout the year and updated for this year’s reporting from March 1, 2021.
    • TY2020 reporting can be done starting April 1, 2021.
    • The TY2020 FATCA reporting deadline is May 3, 2021, as May 1, 2021 falls on a Saturday.

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