The latest IRS, FATCA & CRS news for February 2025
- 03/04/25
- 5 Min Read Time
Coming Up In March 2025
Form 1099 Electronic Filing
Form 1099 deadlines are approaching for most Forms 1099, where filing electronically. Paper filings were due at the end of February, and all recipient copies were due either by January 31, 2025, or February 15, 2025, depending on the type of Form 1099.
For electronic filings, Forms 1099-MISC, 1099-B and 1099-DIV are all due by March 31, 2025.
If any of these dates fall on a weekend or federal holiday, the due date is extended to the next business day. For more details, refer to the General Instructions for Certain Information Returns on the IRS website.
Form 1042/1042-S Deadlines
The Form 1042 is due to the IRS by March 15, 2025, unless an extension is filed. Use Form 7004 to request an automatic six-month extension to file Form 1042. You should submit Form 7004 by the original due date of Form 1042. Note, an extension for filing does not extend the time for payment of any taxes owed.
Electronic filing of Form 1042 remains mandatory for any business with 10 or more information returns.
The Form 1042-S is due to the IRS and recipients by March 15, 2025, unless an extension is filed. Use Form 8809 to request a 30-day extension for furnishing recipient copies or filing with the IRS. For recipient copies, the request must be submitted by March 15 (original due date for furnishing recipient copies). For IRS filing, the request must be submitted by March 15 (original filing deadline). A second 30-day extension may be available for filing with the IRS, but not for furnishing recipient copies, and must be requested in writing with a valid reason.
Withholding Nothing
In case you missed it, Comply Exchange launched a new podcast, Withholding Nothing. The first episode, Stop the Data Bleed – Death by Documentation, Jessica Zeltser (Comply Exchange) and Kai Kyriak (Comply Exchange) were joined by guest speakers Wendy Walker (SOVOS) and Jessalyn Dean (Ledgible) to discuss the ongoing pressure organizations face to document their account holders. Tune in on Spotify, Apple Podcasts or YouTube to explore the challenges associated with data management and documentation overload.
February 2025 FATCA and CRS Headlines
Ireland
On February 19, 2025, the Irish Revenue Commissioners released updated guidance on the Automatic Exchange of Information (AEOI) in Revenue eBrief No. 047/25. Key updates include:
- Section 3.2.1: Clarifies that information received from the United States under FATCA is restricted to assessments of income tax, universal social charge, corporation tax, and capital gains tax.
- Section 3.2.2: Specifies that data obtained from other jurisdictions under the Common Reporting Standard (CRS) is similarly limited to these tax assessments.
- Appendix 1: The AEOI exchange relationships table has been updated to reflect that, in 2024, Ireland began exchanging financial account information under CRS with Georgia, Kenya, Moldova, and Ukraine.
United Arab Emirates
On February 4, 2025, the UAE Ministry of Finance (MoF) released version 2.3 of the FATCA and Common Reporting Standard (CRS) System User Guide. This update introduces a new section that provides instructions for reporting financial institutions on how to deregister from the MoF FATCA/CRS system.
A Message From Our CEO
As we step into the new year, we find ourselves in interesting times, with a new U.S. administration taking office and potentially shifting the regulatory landscape, perhaps more toward deregulation. One area receiving increased attention as a result is cryptocurrency, a space where we are actively engaged. Our R&D team have been working hard behind the scenes, and I’m excited to say that we expect to make some major announcements in the coming weeks, watch this space.
Meanwhile, we’re also entering the busy reporting period, which always keeps things interesting. Our team is fully focused on ensuring a smooth season for our clients, providing the accuracy and efficiency they rely on.
On the product side, we’ve recently launched our Extractor, a powerful AI-driven tool that accurately extracts data from unstructured withholding statements. And we’re not stopping there, our next release, coming soon, will take things even further, using AI to process combined PDF documents, extracting the different documents types, extracting relevant data, and using to automatically build the multi-tiered structures to visualize and calculate withholding rates, all within minutes, and with significantly less human intervention. This is a significant step forward in automation, not seen before and we’re excited to bring this to market.
Plenty happening, and much more to come. Stay tuned.
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Coming Up In March 2025:
Bahamas FATCA, CRS, and CbC-AEOI Reporting
Deadline: February 28, 2025, by 5:00 PM EST.
Financial institutions in the Bahamas are required to submit their FATCA, CRS, and Country-by-Country Automatic Exchange of Information (CbC-AEOI) reports by this date.