The latest IRS, FATCA & CRS news for January 2025

January 2024 FATCA and CRS Headlines

Cayman Islands 

In late 2024, the Cayman Islands’ Department for International Tax Cooperation (DITC) announced the initiation of a comprehensive review program to assess financial institutions’ compliance with the Common Reporting Standard (CRS). These reviews, akin to onsite inspections or audits, are designed to evaluate various aspects of CRS compliance, including: 

• Governance structures 

• Implementation of policies and procedures 

• Due diligence processes 

• Review of self-certifications 

• Timely and accurate submission of CRS reports 

• Completeness of reportable accounts

Financial institutions will be selected for review based on a combination of risk assessments and random selection. The DITC has emphasized the importance of these reviews in ensuring adherence to international tax transparency standards. 

In preparation, financial institutions are encouraged to: 

• Reevaluate existing documentation 

• Review internal processes 

• Ensure that all CRS-related procedures are robust and up-to-date

For detailed information, please refer to the DITC’s official CRS framework page: 

• Cayman Islands DITC – CRS Framework

Finland 

On January 17, 2025, Finland’s tax administration released a newsletter reminding financial institutions of the upcoming deadline for submitting FATCA and Common Reporting Standard (CRS) annual information returns for the 2024 reporting year. These returns must be filed by January 31, 2025. 

Financial institutions are required to ensure that their submissions include current contact details to facilitate communication in case of inquiries. Additionally, they must review any feedback from the tax administration and make necessary corrections to their reports. 

France 

On January 15, 2025, the French tax authorities released version 4.9 of the FATCA technical guidance to assist reporting financial institutions with the submission of FATCA returns. Some of the key updates include: 

• U.S. Taxpayer Identification Numbers (TINs): The guidance reflects the issuance of IRS Notice 2024-78, which extends the temporary relief provided by Notice 2023-11 to foreign financial institutions regarding the reporting of U.S. TINs until 2027.  

• Submission Deadline Extension: Starting in 2025, the regulatory deadline for submitting FATCA files has been extended by 15 days. Consequently, the new submission deadline is July 15, 2025. (Section 5.4)

IRS 

The Internal Revenue Service (IRS) has published a comprehensive webinar titled “FATCA Responsible Officer Certifications of Compliance.” This two-hour session provides an in-depth overview of the Foreign Account Tax Compliance Act (FATCA) certification process, specifically focusing on the responsibilities of Responsible Officers (ROs). The webinar covers topics such as the distinction between Certification of Pre-existing Accounts (COPA) and Periodic Certification, entities required to certify, timelines, due dates, and potential implications of certification results. It also includes a walkthrough of the certification process and discusses related events of default. 

For those interested in viewing the webinar, it is available on the IRS website: 

• Webinar Video and Transcript: FATCA Responsible Officer Certifications of Compliance

Additionally, the IRS provides detailed information on the FATCA certification process, which can be found here: 

• FATCA Certifications: FATCA Certifications 

• Overview of FATCA Certification Process: Overview of FATCA Certification Process

These resources are valuable for financial institutions and their Responsible Officers to ensure compliance with FATCA requirements. 

Isle of Man 

On January 10, 2025, the Isle of Man released the updated list of reportable jurisdictions for the year 2024. Financial institutions should review this list to ensure compliance with reporting obligations. 

Jersey 

On January 15, 2025, the Government of Jersey released version 9.0 of its FATCA and Common Reporting Standard (CRS) practical guidance to assist financial institutions in their reporting obligations. 

FATCA Practical Guidance Updates: 

• Nil Reports: A note has been added stating that a nil report may consist of a single entity or include multiple reporting financial institutions with “No Account to Report.” 

• U.S. Taxpayer Identification Numbers (TINs): The guidance has been updated to reflect that the U.S. Internal Revenue Service (IRS) issued Notice 2024-78, extending the temporary relief provided by Notice 2023-11.

CRS Practical Guidance Updates: 

• Nil Returns: The guidance now specifies: 

• • Option 1: Using the nil return tick box on the upload page of the AEOI portal is applicable only for filing a nil return for a single named entity on the registration. 

• • Bulk Nil Returns: The Jersey AEOI portal now accepts “bulk” nil return CRS703 XML reports, allowing for the submission of nil returns for multiple entities within a single report. 

• TINs: Clarification has been added that for any “Individuals, Controlling Persons, or Entity Account Holders,” CRS reports will be rejected if the TIN element is omitted. 

• AccountHolderType: Financial institutions reporting passive non-financial entities (NFEs) with controlling persons under both AccountHolderType codes 101 and 103 should use only the CRS101 AccountHolderType. Using both codes would be considered a duplicate entry. 

• Nationality Element: The guidance notes that including the nationality element will cause CRS reports to fail validation checks, applicable to all reporting years.

For detailed information, please refer to the updated practical guidance documents available on the Government of Jersey’s official website: 

• CRS Practical Guidance: Practical guidance in respect of reporting under the Common Reporting Standard 

• FATCA Practical Guidance: FATCA (USA) Inter-Governmental Agreement

St. Kitts and Nevis 

On January 10, 2025, the Inland Revenue Department of St. Kitts and Nevis issued an advisory regarding the Automatic Exchange of Information (AEOI) Compliance Form for 2025. Financial institutions are advised to review the updated requirements and ensure timely submission. 

South Korea 

In late December 2024, South Korea issued a revised version of its Common Reporting Standard (CRS) regulations, which includes the following updates: 

• Participating Jurisdictions: Georgia, Moldova, and Ukraine have been added to the list of Participating Jurisdictions. 

• Reportable Jurisdictions: Belize, Georgia, Moldova, and Ukraine have been added to the list of Reportable Jurisdictions.

These updates reflect South Korea’s ongoing commitment to enhancing tax transparency and international cooperation. Financial institutions operating under South Korea’s jurisdiction should review these changes to ensure compliance with the updated CRS regulations. 

Switzerland 

A CRS reporting reminder was sent out reminding Swiss financial institutions that they must transmit reportable information to the Swiss Federal Tax Administration (SFTA) by June 30, 2025. This includes submitting nil reports if no reportable accounts are maintained.