Cayman financial institutions get tax filing extension

The United States tax code requires those who pay tax obligations to report all assets, including those held overseas. The government has passed recent laws that are intended to encourage foreign financial institutions to aid in finding U.S. taxpayers that are attempting to avoid reporting these assets.

Like any reporting requirement, these institutions can get an extension on the deadline for the report.

Financial institutions on Cayman Islands request an extension:

The United States government requires certain financial institutions within the Cayman Islands to report qualifying accounts held by United States taxpayers. The Cayman Islands Department for International Tax Cooperation recently requested and received a reporting extension. The institutions now have until July 31, 2019, to meet reporting requirements under the United States’ Foreign Account Tax Compliance Act (FATCA) for the 2018 tax year.

The Cayman Islands Department for International Tax Cooperation also recommends qualifying institutions take this time to meet any outstanding reporting obligations from 2014 through 2017.

Failure to comply with FATCA can lead to penalties:

Financial institutions that fail to comply with FATCA requirements can face a 30% withholding tax. The US government defines “foreign financial institutions” to include banks and other depository institutions, custodial institutions such as mutual funds, investment entities and certain insurance companies like those that provide annuities.

US taxpayers with accounts in Cayman Islands should use this notification as a reminder to ensure accounts are in full compliance with applicable tax laws:

Those who have yet to come into compliance with tax obligations are wise to take this opportunity to review their options. A failure to comply with applicable reporting requirements can result in stiff financial penalties. Depending on the details of the allegations, the United States government could push for jail time.

No Comments

Leave a comment
Comment Information
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1050 Connecticut Ave NW #500
Washington, D.C. 20036

Phone: 202-618-1873
Fax: 888-235-8405
Washington Law Office Map

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Columbia Law Office Map

Annapolis Office
839 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 202-618-1873
Phone: 410-497-5947
Fax: 888-235-8405
Annapolis Law Office Map

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 202-618-1873
Phone: 703-988-4817
Fax: 888-235-8405
Fairfax Law Office Map

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 202-618-1873
Phone: 240-599-5009
Fax: 888-235-8405
Rockville Law Office Map

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 202-618-1873
Phone: 443-743-3381
Fax: 888-235-8405
Baltimore Law Office Map