Fill out Form 8966, FATCA Report with Instafill.ai

Part I of Form 8966 requires the filer to provide their identification information, including their name, taxpayer identification number (TIN), and address. If the filer is an entity, additional information such as the entity type, employer identification number (EIN), and the name and address of the principal officer or person responsible for the entity's tax matters may also be required.

A Global Intermediary Identification Number (GIIN) is a unique identification number issued by the Internal Revenue Service (IRS) or the relevant tax authority of the jurisdiction where the intermediary is located. It is used to identify financial institutions and other intermediaries that are required to report under FATCA. Part III of Form 8966 is used to report the GIIN of the reporting financial institution or withholding agent. If the filer is an FFI (Foreign Financial Institution) or NFFE (Non-Financial Foreign Entity) reporting directly on Form 8966, they will need to apply for and obtain their own GIIN.

Part II of Form 8966 is used to report the financial accounts of entities that are owned directly or indirectly by the filer. For each entity, the filer must provide the entity's name, address, and taxpayer identification number (if available). The filer must also report the type of entity, the entity's account number (if applicable), and the total value of reportable assets held by the entity during the calendar year. If the entity is a passive NFFE, the filer may be required to report additional information, such as the entity's country of incorporation and the percentage of ownership.

An Owner-Documented FFI (Foreign Financial Institution) is a financial institution that has self-certified its status as a FATCA reporting entity by providing the required information about its owners to the reporting financial institution. A Passive NFFE (Non-Financial Foreign Entity) is a non-financial entity that is engaged primarily in passive activities and has elected to report its U.S. source income directly to the IRS. A Non-Participating FFI is a financial institution that has not agreed to report FATCA-relevant information to the IRS. Instead, it relies on its customers (account holders) to report their status and provide the necessary information.

To report a U.S. owner in Part III of Form 8966, you will need to provide the name, address, and TIN or SSN of the U.S. person. If the U.S. person is an entity, you will also need to provide the entity's EIN. It is important to ensure that the information reported is accurate and complete.

Part IV of Form 8966 requires reporting of financial information related to the foreign financial institution (FFI) or withholding agent, including the total reportable payments made during the calendar year, the total reportable payments made to each account holder, and the total withheld tax. It is important to ensure that all required financial information is accurately reported.

Pooled reporting is the reporting of multiple accounts held by the same reporting NWI or withholding agent under a single FFI identification number (FFID). In Part V of Form 8966, you will report the total reportable payments made to each NWI or withholding agent, as well as the total withheld tax for each account type. It is important to ensure that all required information is accurately reported and that each account is properly identified.

A corrected report is a report that corrects errors or omissions in a previously submitted report. An amended report is a report that replaces a previously submitted report due to a change in circumstances. A voided report is a report that has been canceled before being processed by the IRS. It is important to follow the correct procedures for submitting corrected, amended, or voided reports to ensure compliance with FATCA reporting requirements.

The OMB No. for Form 8966 is 1545-0124. Instructions for completing Form 8966 can be found in the instructions booklet provided by the IRS, or on the IRS website. It is important to carefully review the instructions to ensure that all required information is accurately reported.

The three-digit identifier number is used to identify the type of filer for Form 8966. It is located in Part I, Line 1a of the form. The number '11' indicates an individual, '23' indicates a withholding agent, '31' indicates a foreign financial institution, and '33' indicates a foreign intermediary or foreign flow-through entity. This number helps the IRS to process the form correctly.

An individual refers to a natural person, whereas an entity refers to any legal entity, including but not limited to, corporations, partnerships, trusts, and estates. For reporting purposes, individuals are required to report their financial interests in specified foreign financial assets, while entities are required to report their own foreign financial assets and the foreign financial assets held by their controlled foreign entities or foreign branches.

A specified U.S. Person is a U.S. person who is required to report their financial interests in specified foreign financial assets based on their status as a specified individual or specified entity. A specified individual includes a U.S. citizen, a resident alien for tax purposes, and a U.S. person who holds a green card. A specified entity includes a domestic corporation, a domestic partnership, and a domestic trust or estate. A non-specified U.S. Person is a U.S. person who is not a specified person and is not required to report their financial interests in specified foreign financial assets under FATCA.

Form 8966 accepts reporting in any functional currency, including the U.S. dollar ($), Euro (€), British Pound (£), Swiss Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD), New Zealand Dollar (NZD), Japanese Yen (JPY), and any other currency that is regularly traded on the international markets. The currency code should be reported in Part III, Line 1 of the form.

An account balance refers to the value of a single financial account at a specific point in time. An aggregate account balance refers to the total value of all financial accounts held by a reporting person or entity in a specific type of foreign financial institution. For reporting purposes, a reporting person or entity is required to report both the account balances and the aggregate account balances for each type of foreign financial institution.

Gross proceeds refer to the total amount received upon the sale or exchange of a reportable asset, including any gain recognized on the transaction. Redemptions, on the other hand, refer to the distribution of funds from an investment, such as mutual funds or other pooled investment vehicles, to an account holder. It's important to note that gross proceeds are reported when an asset is sold or exchanged, while redemptions are reported when the account holder receives distributions from the investment.

Interest refers to income derived from the use of money, while dividends are distributions of a corporation's earnings to its shareholders. For reporting purposes on Form 8966, interest includes income from debt instruments, such as bonds, notes, and loans, while dividends include distributions from domestic and foreign corporations. It's essential to differentiate between the two, as they have different reporting requirements and tax implications.

A recalcitrant account holder is an individual or entity that has not provided the necessary information required to determine their tax status or report their account activity under FATCA. A passive NFFE (Non-Financial Foreign Entity) is a foreign entity that does not meet the active income test or the substantial presence test. Passive income includes income from interest, dividends, rents, royalties, and gains from the sale or disposition of assets that are not held for trade or business. Recalcitrant account holders and passive NFFEs have different reporting requirements and tax implications under FATCA.

A dormant account is an account that has not been active for a specified period, typically 12 months or more. Dormant accounts are not subject to reporting under FATCA unless they become active again. A recalcitrant account, as mentioned earlier, is an account held by an individual or entity that has not provided the necessary information to determine their tax status or report their account activity under FATCA. Recalcitrant accounts are subject to withholding tax and reporting requirements.

A recalcitrant account holder with U.S. indicia is an individual or entity that holds a U.S. account and has not provided the necessary information to determine their tax status or report their account activity under FATCA. A recalcitrant account holder without U.S. indicia is an individual or entity that holds a foreign account but has not provided the necessary information to report their account activity under FATCA. The reporting and withholding tax requirements may differ between the two types of recalcitrant account holders.

The Tax Identification Number (TIN) is required for reporting entities and individuals to report their financial information on Form 8966 (FATCA Report of Foreign Bank and Financial Accounts). The TIN serves as a unique identifier for the reporting entity or individual, ensuring proper identification and reporting of the required information to the Internal Revenue Service (IRS). Failure to provide a valid TIN may result in penalties.