The deadline to report US accounts by offshore funds that are organized in Model 2 Intergovernmental Agreement (IGA) jurisdictions, such as Bermuda, as required by Foreign Account Tax Compliance Act (FATCA), is quickly approaching. The first report by such funds on IRS Form 8966 is due by March 31. However, an automatic 90-day extension is being granted for this year.
Reporting foreign financial institutions in Model 1 IGA jurisdictions, such as the British Virgin Islands and the Cayman Islands, will need to adhere to the reporting timelines established by their respective jurisdictions. The reporting of US accounts for funds organized in the British Virgin Islands and the Cayman Islands funds is due by May 31. Cayman Islands funds will need to notify the Cayman Islands government by April 30 that they have US accounts to report.