Key Dates and Reminders
- On June 16, 2022, the IRS provided an update on the transition to the new Information Returns TCC (IR-TCC) Application for Filing Information Returns Electronically (FIRE) for customers who received their TCC(s) prior to September 26, 2021. Beginning in September 2022, FIRE TCC holders who submitted their TCC Application prior to September 26, 2021, will need to submit and complete the IR-TCC Application. The application can be done at any time between September 2022 and August 1, 2023. Any FIRE TCC that does not have a completed IR-TCC Application by August 1, 2023, will be dropped and will not be available for e-file. Click here to find out more information about the application process.
- On June 22, 2022, the IRS provided an update on Form 4419, Revise Existing Transmitter Control Code (TCC) for Filing Information Returns Electronically (FIRE). As part of the transition to the new Information Returns Application for Transmitter Control Code (IR-TCC), Form 4419 will be phased out effective August 1, 2022.
- If you faced challenges with your year-end reporting obligations, now is a great time to start reviewing your processes and procedures and implementing changes. As we know, IRS agents always ask for documented processes and procedures. This will be the first thing asked for when under audit. Consider things like:
- Documenting the methodologies that you use when taking a position and to update your processes and procedures accordingly.
- For example, documenting methodologies for identifying effectively connected income (ECI) and U.S. source fixed, determinable, annual, or periodical (FDAP) income that must be reported and documenting the usage of checklists or online validation applications for withholding certificate reviews.
- If you do not have W-8s and W-9s on file when you should, consider undertaking some remediation efforts to obtain those forms and collecting affidavits or retroactive statements for Forms W-8, where applicable.
FATCA / CRS Key Dates & Reminders – Select Jurisdictions
- On June 7, 2022, the IRS published Issue Number 2022-03, with a reminder that for the FATCA certification period ending December 31, 2021, FATCA Responsible Officer (“RO”) certifications are due no later than July 1, 2022. If an entity that is required to certify does not submit its certifications by the due date, the entity will not be in compliance with its obligations under FATCA. The consequences of being non-compliant may include the revocation of an entity’s FATCA status and, ultimately, the entity’s GIIN being removed from the FFI list.
- On June 20, 2022, OECD announced that the Republic of the Congo has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes, becoming the 165th member. Like all other members, by joining the Global Forum, Republic of the Congo is committed to combatting offshore tax evasion through the implementation of the internationally agreed standards of exchange of information on request (EOIR) and automatic exchange of information (AEOI).
- On May 27, 2022, the Barbados Revenue Authority (the Authority) advised all Reporting Barbados Financial Institutions (RBFIs) that the Automatic Exchange of Information (AEoI) web portal will open on Wednesday, June 1, 2022, for 2021 submissions. This portal will remain available until Wednesday, August 31, 2022. The Authority warns that submissions made after the deadline will incur a penalty. Failure to submit required reports may result in a fine of $50,000 or imprisonment for a term of 10 years or both. Further, penalties may also include $10,000 for a Reporting Barbados FI that fails to deliver the required report.
- The Authority also announced that in October 2022, the AEoI Portal will begin facilitating the filing of prior year Common Reporting Standard (CRS) and/or Foreign Account Tax Compliance Act (FATCA) reports and corrections to reports previously submitted.
- RBFIs that operated for the full reporting year or a part of the reporting year must submit a report for that particular period. Further, RBFIs that wish to deregister an institution from the AEOI web portal must do so in writing to the Authority on the company’s letterhead together with the necessary documentation via e-mail at firstname.lastname@example.org. RBFIs must submit all outstanding reports in order for the Authority to deregister an entity.
- The Inland Revenue Board of Malaysia (IRBM) published an updated IRBM Public Key for FATCA reporting to their website. The validity period of the Public Key is January 14, 2022 – January 25, 2023. The date for submitting the 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 reportable information and nil returns under FATCA to IRBM has been tentatively deferred to 2023.
- The Federal Board of Revenue (FBR) in Pakistan issued Circular No. 14 of 2022 announcing the issuance of the AEOI Implementation Manual to standardize and improve the process of compliance by Reporting Financial Institutions (RFIs) and efficient exchange of CRS reciprocal data. The manual is divided into two sections:
- Pillar A: Common Reporting Standard (CRS) Reciprocal Data guidelines
- Pillar B: Reporting Financial Institutions (RFIs) Compliance guidelines
- The Inland Revenue Department of Saint Lucia published updated guidelines for both FATCA and CRS. Check out the updated guidelines below:
- On June 1, 2022, the South African Revenue Service (SARS) posted an alert indicating Third Party Data submissions for the 2022 reporting period of annual Third Party Data Returns is now closed. SARS notes that 99% of the required Third Party Data submissions have been received timely and urges any outstanding returns to be submitted urgently as incomplete, late or non-submissions may be liable for penalties.
This month saw the launch of our new website! Our new release has countless design upgrades and even more information about our various solutions. Make sure you head on over to www.complyexchange.com.
Join us at the Sovos Comply and Connect Conference in Washington, D.C. on November 9 – 11. This annual event showcases experts addressing top changes and challenges your business faces in tax withholding and information reporting compliance. Register here.
We are in the process of onboarding and integrating with several new clients across various industries. In always taking our client’s needs into account, we will be adding various features into the software over the coming months from both a tax and technical perspective. Stay tuned!
If you would like to schedule a demo and discuss how Comply can help you automate and centralize your information reporting and withholding requirements, contact us at email@example.com.