FATCA Registrations Delay: Important Update

HM Revenue & Customs (HMRC) has advised that some individuals are experiencing difficulties in validating Foreign Accounts Tax Compliance Act (FATCA) registrations, in advance of the 31 May 2015 deadline for reports.

The advice from HMRC is that you should continue to file your FATCA return as soon as possible and it will not seek to apply a late FATCA filing penalty while these online delays continue.

HMRC has further advised that its published guidance is being updated to include a specific reference to these delays being considered a reasonable excuse to avoid penalties for late filing.

FATCA is US legislation aimed at reducing tax evasion by their citizens. It requires financial institutions outside the US to pass information about their US customers to the US tax authorities, the Internal Revenue Service (IRS).