The Latest IRS, FATCA and CRS News for June 2025

06/30/25
13 Min Read Time

Coming Up In July 2025 & Key Updates:

AIFinTech100

Comply has been included in this year’s AIFinTech100, a list of the world’s most innovative companies using AI to transform financial services. It’s exciting to see our work in tax automation, intelligent data extraction, and responsible AI recognised alongside so many impressive companies. At Comply Exchange, we’re focused on building practical tools that help organizations stay compliant and streamline their information reporting and withholding processes, and AI continues to play a growing role in that mission.

Comply Exchange – Sovos Webinar

Join Comply Exchange and Sovos for a live webinar on Wednesday, July 9^th, at 3pm EDT to discuss W-8/W-9 Management for Digital Assets, focusing on collection and validation tactics ahead of 1099-DA compliance. We will cover key collection requirements, document management best practices, and real-world use cases to help you prepare for 1099-DA reporting.

IRS: FATCA Responsible Officer Certifications

As a reminder, for the certification period ending December 31, 2024, FATCA Responsible Officer (“RO”) certifications are due no later than July 1, 2025. If an entity is required to certify and fails to do so by the due date, the entity will not be in compliance with its obligations under FATCA and risks revocation of the entity’s FATCA status, and ultimately the entity’s GIIN being removed from the FFI list.

IRS & Treasury Updates June 2025:

Legislative Update: Section 899

As part of recent developments, the U.S. Treasury announced that an agreement has been reached with the other G7 countries – Canada, France, Germany, Italy, Japan, and the UK – to exclude U.S. companies from being hit with Pillar Two taxes. In exchange, the U.S. has agreed to remove proposed Section 899 from the “One Big Beautiful Bill” that is currently in Congress.

As a reminder, Section 899 would’ve introduced a retaliatory tax on certain non-U.S. entities from countries that impose what the U.S. sees as discriminatory taxes, like UTPRs, digital services taxes, or diverted profits taxes. With this agreement in place, it looks like that provision will be dropped. We will keep watching as this bill continues to evolve.

Transitional Relief for Digital Asset Sales

On June 12, the IRS released Notice 2025-33, extending relief for brokers handling digital asset transactions, specifically announcing that no backup withholding will be required on digital asset transactions for 2025 and 2026. Looking ahead to 2027, there is targeted relief in the following areas:

Brokers can rely on uncertified TINs for existing customers, if TIN matching is used.
Certain foreign customers won’t trigger penalties or require backup withholding.
For crypto-to-crypto trades (excluding NFTs), backup withholding is only required on the amount received when liquidated, not the full transaction value.

June 2025 FATCA, CRS and CARF Headlines:

British Virgin Islands: BVIFars Updates

The British Virgin Islands International Tax Authority (BVI ITA) posted a notice informing users of the BVI Financial Account Reporting Systems (BVIFars) of the following:

Issues with making payments via credit cards
- Users experiencing issues making bulk payments via credit card or are unable to complete the payment transaction using a credit card should contact BVI ITA promptly at payments@bviita.vg. The subject line should read “BVIFars Payment Difficulties” with issues noted in the body of the email.
User access
- Only primary and secondary users who have been assigned “FI permissions” under their access profile are authorized to make payments via the BVIFars portal.
Annual fee application
- All entities that are currently enrolled in the portal are subject to the annual application fee. An entity who submitted an entity deactivation request on or before 8 April 2025 is not required to make the annual fee payment unless the request was declined by the BVI ITA.
- Where an entity has made a deactivation request after 8 April 2025, the entity should ensure all filings are up to date and that the entity is in good standing with the annual fee before proceeding with the application.
BVIFars Service Status
- The ITA website now includes real-time service status updates for the BVIFars portal.

Cayman Islands: Updates Bulletin

The Cayman Islands Department for International Tax Cooperation (“DITC”) posted an Updates Bulletin during the month of June. The bulletin contained the following reminders:

2024 CRS & FATCA Reporting Deadlines
- 2024 CRS Reporting: 31 July 2025
- 2024 CRS Filing Declaration: 31 July 2025
- 2024 FATCA Reporting: 31 July 2025
- 2024 CRS Compliance Form: 15 September 2025
Reportable and Participating Jurisdictions
- Reminder that an updated list of CRS Reportable and Participating Jurisdictions was published in the Cayman Islands Gazette, Issue No. 07/2025, on Monday 31 March 2025.

Germany: CRS Newsletter 03/2025

On June 17, 2025, the Federal Tax Office of Germany (BZSt), published CRS Newsletter 03/2025, which included the following updates:

Final 2025 Exchange List
- The final list of exchanges of states for 2025 has been announced by the Federal Ministry of Finance.
Maintenance work on CRS system
- Maintenance work on the CRS system will take place from 27 June 2025 to 02 July 2025, at the latest. The transmission of CRS reports is not affected by this and can be submitted as normal; however, there may be a delay in the transmission of the processing logs.
GIIN not sufficient to classify an entity as a financial institution
- Pursuant to Sections 9 to 18 of the Financial Account Information Exchange Act (FKAustG) and Section 5 (1) of the FATCA-USA Implementation Ordinance (FATCA-USA-UmsV), reporting German financial institutions must identify reportable accounts. Account holders who are themselves financial institutions are not subject to reporting obligations. Clarification is provided that the mere existence of a Global Intermediary Identification Number (“GIIN”) is not sufficient to determine classification of an entity as a financial institution. The provision of a GIIN does not replace the proper verification of an account as part of due diligence obligations.

Crypto-Asset Reporting Framework (CARF)

In June, the OECD updated the list of jurisdictions committed to implement the CARF in time to commence exchanges in 2027 or 2028 as part of the Global Forum’s CARF commitment process. The list was updated in June to include Kenya, under jurisdictions undertaking first exchanges by 2028.

A Message From Our CEO

It’s been a landmark month for crypto and digital innovation. After attending the 2025 London Blockchain Conference, where the focus was clearly on regulation, real-world utility, and institutional adoption, it’s clear the space is evolving. With a session at the House of Lords on the horizon next week, the momentum continues. At Comply Exchange, we’ve always been a forward-thinking, innovative company, and some of our most exciting announcements are now just around the corner. Stay tuned, as we unveil something truly game-changing.

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