The Foreign Account Tax Compliance Act (FATCA) was passed to reduce tax evasion through offshore accounts and other financial interests outside of the United States. The law involves anyone who pays taxes, including foreign nationals and foreign governments required to pay taxes in the U.S. 

FATCA certification is a way to ensure taxpayers are complying with these new requirements. There are two types of certifications: certification of preexisting accounts (COPA) and periodic certification. 

The due date for submitting FATCA Certification is July 1. FATCA certification is initially due after the third full calendar year after the date the entity registered and received a Global Intermediary Identification Number (GIIN). 

All certifications must be submitted online via the FATCA registration system. As of 2024, there are no exemptions or waivers. In other words, if you're required to submit a certification, you have to submit it without exception.  

If a taxpayer submits a form that says either “unable to complete a certification” or “not required to complete a certification,” they won't be in FATCA Compliance. They must also explain why they selected either of these responses. 

COPA 

For preexisting accounts, some account holders must certify with the IRS that they've compiled with: 

Taxpayers will submit COPAs to the IRS at the same time they submit their first Periodic Certification. 

Periodic Certification 

Some taxpayers may be required to re-certify their compliance with FATCA requirements. If an organization is required to provide a certification of compliance, they must submit it by July 1 of the year after their applicable certification period.  

For taxpayers required to submit periodic certification, knowing the specifics of when and how they must re-certify is crucial. For example, a Foreign Financial Institution's (FFI) first certification period starts at the date of the FFI agreement. Subsequent certifications are every three calendar years after the original one.

If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.