The Cayman Islands Department for International Tax Cooperation (DITC) has advised that it is in the final stages of preparing its FATCA data to be provided to the IRS. Information on US Reportable Account Notifications and 2014 Returns for US FATCA should now be completed and successfully submitted.
It is anticipated that the Cayman AEOI Portal will close after 5:00pm (EST) on 28 August 2015 to facilitate this preparation. Please note that Nil Returns are not a mandatory requirement.
Return entries that are not completed and have the status of "No Data," "Ready to Submit" or "In Draft" should be reviewed and either be finalised and submitted, or removed, from the AEOI Portal.
Failure to notify the DITC of entries that have been uploaded with test or incorrect data will result in the information being included in the transmission to the IRS and may result in sanctions.
The DITC has taken a soft approach to the enforcement of 2014 US FATCA data reported this year, but cannot guarantee that late submissions will be accepted beyond 5:00pm (EST) on 28 August 2015.
The opportunity to remediate late reporting will therefore cease once the AEOI Portal is closed on 28 August 2015.
Full details of the DITC advisory can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.