The Guernsey Revenue Service on November 20, 2024, issued Bulletin 2024/4, informing reporting Guernsey financial institutions about the extension by the U.S. tax authority (IRS) under Notice 2024-78 of temporary relief for foreign financial institutions concerning the reporting of U.S. taxpayer identification numbers (TINs).
The Bulletin contains the following updates:
- Extension of temporary relief: The IRS issued Notice 2024-78 at the end of October 2024 extending the temporary relief provided in Notice 2023-11 for calendar years 2025, 2026, and 2027. Reporting Guernsey financial institutions with obligations under the FATCA regulations are reminded that they must adhere strictly to IRS Notices 2023-11 and 2024-78 when submitting FATCA reports. The bulletin reiterates that the relief under these notices is limited to reporting on pre-existing accounts and does not apply to new accounts or new accounts opened by pre-existing account holders, when a valid U.S. TIN must be obtained upon account opening. Read TaxNewsFlash
Notice 2024-78 provides two additional requirements that must be fulfilled by reporting Model 1 foreign financial institutions in order to obtain relief:
- Foreign financial institutions must report a foreign taxpayer identification number (FTIN) or functional equivalent for each specified U.S. person who is missing a required U.S. TIN if those FTINs, assigned by the respective country of residence, are found in the foreign financial institutions' electronically searchable account information
- Foreign financial institutions must—using the AddressFix element—report the city and country of residence for each specified U.S. person who is missing a required U.S. TIN
- Record keeping and compliance enquiries: Foreign financial institutions must retain records of the policies and procedures applied to comply with Notice 2023-11 and Notice 2024-78 until the end of the 2031 calendar year. Any accounts reported using an invalid U.S. TIN, following the submission of FATCA data, will receive a compliance enquiry from the Guernsey Revenue Service.
- FATCA Compliance Assurance Statement: The bulletin notes that the Information Gateway Online Reporter (IGOR) FATCA Compliance Assurance Statement will need confirmation that the TIN format aligns with the requirements outlined in this Bulletin and Bulletin 2023/3, starting with the 2025 reporting year.
Read a November 2024 report prepared by the KPMG member firm in the Channel Islands