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The Comply Catch-Up – September 2021 Issue 10

The Comply Catch-Up September 2021

Comply Updates

We’re excited to announce that we will be attending and sponsoring the 2021 Intelligent Reporting Summit hosted by Sovos.

Our team will be presenting various sessions during the weeklong event, including Operationalizing Forms W-8 and W-9 Processing and Forming an Organizational Blueprint for 1099 reporting for Digital Assets: W Forms & Self Certifications.

Be sure to also stop by our showcase session on Wednesday, October 6th, where we will be highlighting our Information Reporting and Withholding software, including our latest innovations. Grab your tickets here!

Speaking of our latest innovations, development on both our mForms solution and the Information Exchange continues to progress. Both applications are nearing launch! We are excited to show off these industry elevating solutions. Make sure to follow us on LinkedIn for more information!

Key Updates and Reminders

On September 2, 2021, the IRS published a DRAFT Form W-8BEN-E and Instructions. Similar to the recently published DRAFT Forms W-8, the BEN-E incorporates a number of updates related to the rules under sections 1446(a) and 1446(f), foreign taxpayer identification numbers (FTINs), claim of tax treaty benefits, and certifications. Read the full article here to find out the changes to the face of the form.

Instructions for Form 2848, Power of Attorney and Declaration of Representative (Rev. September 2021) are now live. The key updates here relate to electronic signatures.

  • First, acceptable methods now include a signature created by a third-party software. Further, to authenticate a business entity taxpayer’s identity for remote transactions, the third party must confirm through documentation that the individual who is signing the form has authority to sign on behalf of the taxpayer.

  • Finally, with respect to Forms 2848 signed electronically in a remote transaction, the third party must authenticate the signing individual’s entity and, in the case of an entity taxpayer, must authenticate the relationship between the entity taxpayer and the individual signing on behalf of the taxpayer. That is, unless the third party has personal knowledge allowing the third party to authenticate this information.

To find out more read the full article here!

On September 13, 2021, the IRS published DRAFT Forms 1099-MISC and NEC. Although the changes are few and subtle, they are worth noting:

  • Both DRAFT Forms 1099-MISC and NEC have been updated to reflect that they are continuous use forms.

  • DRAFT Form 1099-MISC includes renumbering of Boxes 13-18. The FATCA Filing Requirement checkbox is now Box 13 and all previously numbered boxes 13-17 on Form 1099-MISC have been renumbered 14-18 on the DRAFT Form 1099-MISC to accommodate the update.

  • Both DRAFT Forms 1099-MISC and NEC include references to the current General Instructions for Certain Information Returns in place of instructions regarding due dates, because the DRAFT Forms are continuous use forms and not year specific.

Check out the DRAFT Form 1099-MISC here and the DRAFT Form 1099-NEC here.

On September 27, 2021, the IRS released the Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G For Tax Year 2021.  There are a number of updates to Pub. 1220 this year, some of which include, but are not limited to: 

  • The new online Information Returns Application for Transmitter Control Code (TCC) and Secure Access 

  • Form 1099-MISC and Form NEC, particularly due dates and that Form 1099-NEC is part of the Combined Federal/State Filing (CF/SF) Program 

  • Common formatting issues 

  • Format specifications and record layouts 


Have a look at the 2021 Pub. 1220 here and be ready for your 2021 electronic filing tax year! 

During the offseason it is always a good idea to check in on general information reporting rules that may go unnoticed. One recommendation we always have is to review the rules for electronic delivery of recipient statements.

  • Generally, these can be found in Section 4.6 of Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns. Here are a few reminders regarding consent from recipients and formatting that are not always top of mind.

  • A recipient must provide consent in the affirmative to receiving the statement electronically. This is done electronically and in a way that demonstrates that he or she can access the statement in the electronic format in which it will be furnished. The recipient must not have withdrawn this consent before the payor or withholding agent furnishes the statement.

  • Payors and withholding agents are required to notify recipients whether there are any hardware or software updates before furnishing the statement, so that the recipient may adjust accordingly. Each time there is a new hardware or software release or updates, then the recipient must provide a new consent to receive the statement electronically.

FATCA / CRS Key Dates & Reminders – Select Jurisdictions


  • The Bermuda Ministry of Finance (the “Ministry”) published a notice informing Bermuda RFIs of the following upcoming CRS Compliance Activities planned by the Ministry:
    • Annual CRS Compliance Certification Form: The Ministry is adding an Annual CRS Compliance Certification Form (the “CRS Compliance Form”), which must be completed annually by all Bermuda RFIs and Trustee-Documented Trusts starting with the 2020 reporting period. The CRS Compliance Form should be available in the portal by October 15, 2021, and must be submitted no later than December 15, 2021, for the period ending December 31, 2020. For future reporting, the CRS Compliance Form must be submitted no later than September 30 following the end of the reporting period.
    • CRS Independent Compliance Reviews: The Ministry will begin issuing notices requiring certain Bermuda RFIs to undertake a CRS Independent Compliance Review (“CRS Review”).

  • The Ministry prepared guidelines for Bermuda RFIs for each of the above compliance activities:
  • The Ministry also reminds Bermuda RFIs of key points regarding CRS Compliance. See the full notice here.

Cayman Islands

  • The Department for International Tax Cooperation (DITC) of the Cayman Islands released updated FAQs under the CRS Compliance Form section. See the full list of FATCA and CRS FAQs here.


  • The Revenue Service of the States of Guernsey issued Bulletin 2021/5 which contained updates to The Income Tax Law in relation to FATCA and CRS. Read the full Bulletin here.


  • The Luxembourg Tax Administration (ACD) posted a newsletter on September 21, 2021. The newsletter informs Luxembourg Reporting Financial Institutions that have submitted FATCA declarations with administrative or minor TIN errors, that they will be notified by letter from ACD at the beginning of October in the event of a notification received from the IRS. The Financial Institutions will have 120 days to remedy the TIN issues, and if they are unable to remedy the TIN, the IRS will then assess whether there is significant noncompliance.


  • The Inland Revenue Authority of Singapore published FY2020 Annual Report. Included in the report is a section on International Engagements & Partnerships which discusses compliance under FATCA and CRS. Read the full Annual Report here.


  • Ministry of Finance of Ukraine officially announced its intention to implement the International Standard for Automatic Exchange of Information on Financial Accounts for Tax Purposes and plans to carry out first information exchanges in September 2023 for the reporting year 2022.

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