2025 Reporting Updates: Key IRS Deadlines and FATCA Changes You Need to Know!
The IRS has recently announced significant updates for January 2025 that financial institutions must comply with to avoid penalties. Understanding these crucial deadlines and compliance requirements is essential for organizations to maintain their tax obligations effectively.
Important IRS Deadlines for 2025
As financial institutions prepare for the upcoming tax season, they should be aware of the following key deadlines related to Form 1099:
- January 31, 2025: Deadline for distributing recipient copies of 1099-MISC, 1099-NEC, and 1099-DIV forms.
- February 28, 2025: Due date for IRS paper filings.
- March 31, 2025: Final deadline for electronic submissions.
Note that if a due date falls on a weekend or federal holiday, the deadline is automatically extended to the next business day. For complete details, refer to the IRS General Instructions for Certain Information Returns.
Increased Penalties for Late Filings
The IRS has intensified scrutiny on Forms 1099 and 1042-S, resulting in increased regulatory penalties:
- $60 penalty for late submissions within 30 days.
- $330 penalty for filings after August 1 or for non-filing.
- $660 penalty for intentional disregard of filing requirements.
Financial institutions are encouraged to review the IRS Information Return Penalties page for further details.
International Tax Reporting Updates
Cayman Islands Compliance Review
The Cayman Islands’ Department for International Tax Cooperation (DITC) has initiated a comprehensive Common Reporting Standard (CRS) compliance review program. This program includes:
- Governance evaluations
- Due diligence assessments
- Report submission reviews
Financial institutions should reassess their documentation and improve internal processes to enhance compliance with transparency standards.
Updates from Finland and France
Finland’s tax administration has reminded financial institutions to submit their FATCA and CRS annual reports by January 31, 2025. Institutions must verify their contact details and respond to any feedback from tax authorities.
In France, the latest version of FATCA technical guidance (version 4.9) offers temporary relief on reporting U.S. Taxpayer Identification Numbers (TINs) until 2027, with submission deadlines extended to July 15, 2025.
IRS Webinar on FATCA Compliance
The IRS has released a comprehensive webinar focused on FATCA Responsible Officer Certifications. This session covers:
- Compliance responsibilities
- Certification processes
- Key reporting deadlines
Financial institutions can access the webinar via the IRS website.
Global Tax Reporting Updates
Additional updates from around the globe include:
- The Isle of Man has published its 2024 list of reportable jurisdictions.
- Jersey has released version 9.0 of its FATCA and CRS practical guidance, including expanded nil reporting options.
- St. Kitts and Nevis has issued a 2025 advisory on the Automatic Exchange of Information (AEOI) compliance form.
- South Korea has updated its CRS regulations to include Georgia, Moldova, and Ukraine as reportable jurisdictions.
- Switzerland has reminded institutions to submit CRS reports to the Swiss Federal Tax Administration by June 30, 2025.
With these updates, financial institutions must adopt a proactive approach to compliance. As IRS deadlines and global tax reporting obligations evolve, organizations should regularly review their documentation practices and update reporting processes to ensure a smooth tax season.
For more detailed information, you can read the full story on Comply Exchange.
