Before You Begin

There are five parts to Form 8966. A filer completes only the relevant parts of the form applicable for that filer, as set forth in the following chart.

Form 8966 Completion

Special instructions for filers not specifically listed in chart. For purposes of applying the specific instructions (including this chart), a withholding agent includes a U.S. branch or Territory Financial Institution treated as a U.S. person. A Reporting Model 2 FFI files consistent with the

requirements of a PFFI unless otherwise indicated. A Sponsoring Entity of a Sponsored FFI files under the requirements of a PFFI. An RDCFFI files under the requirements of a PFFI with respect to an account it is required to report as a condition of its deemed-compliant status. A trustee of a Trustee-Documented Trust files

Instructions for Form 8966 (2025) 7

under the requirements of a PFFI. A Sponsoring Entity of a Sponsored Direct Reporting NFFE files under the requirements of a Direct Reporting NFFE. A related entity or branch described in an applicable Model 2 IGA, to the extent it is permitted to report, files under the requirements of a PFFI unless otherwise indicated. Entities filing consistent with a PFFI should substitute their chapter 4 status for PFFI where that term is used in the instructions, except as otherwise noted.

Amount and character of payments. The amount and character of payments made with respect to an account may be determined under the same principles that the filer uses to report information on resident account holders to its domestic tax authority. Thus, the amount and character of items of income required to be reported need not be determined in accordance with U.S. federal tax principles. If any type of payment is not reported to domestic tax authorities, such amounts may be determined in the same manner as used for reporting to the account holder. Otherwise, reporting must either be in accordance with U.S. federal tax principles, or with any reasonable method consistent with the accounting principles applied by the PFFI. IRS consent is required to change such method, except that a change to rely on U.S. federal income tax principles is automatically permitted. See Regulations section 1.1471-4(d)(4)(iv)(E).

Currency translation. Account balance or value, and any reportable payment, may be reported in U.S. dollars or in the currency in which the account or payment is denominated. In the case of an account, or payments denominated in multiple currencies, the filer may elect to report the account balance or value, or payments, in a currency in which the account or payments are denominated and is required to identify the currency, including the applicable currency code, in which the account is reported. See Regulations section 1.1471-4(d) (4)(iv)(B) and (F). If an account balance or payment is reported in U.S. dollars, the filer must calculate the amount in the manner described in Regulations section 1.1471-5(b)(4).

Rounding off to whole currency amounts. You may round fractional currency amounts up (or down) to the closest non-fractional (whole) currency amount. If the fractional currency amount is equal to or greater than half the value of the basic currency unit, round up to the next whole currency amount. If the fractional currency amount is less than half the value of the basic currency unit, round down to the next whole currency amount. If you choose to round currency amounts, you must round all currency amounts reported.

The following illustrates the application of this rule to U.S. dollar amounts. To round off amounts to the nearest whole dollar, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents (your fractional currency amount) when adding and only round off the total.

Identifier Filers submitting paper Forms 8966 must assign a unique identifying number to each Form 8966 they file. The

identifying number must be numeric (for example, 001) and must be exactly three digits. Enter the three-digit identifying number in the box for “Identifier” at the top of the form.

If you are filing a paper Form 8966 that is an amended, corrected, or voided report, you must include the unique identifying number that you assigned to the original form that is being amended, corrected, or voided. For example, to amend a form that had an identifying number of 002, the amended form should also have the identifying number 002. In addition, the identifying number will be used by the IRS to identify the form in any correspondence with the filer.

The identifying number must be unique to each original Form 8966 filed for the current year. The identifying number can be reused on a new original form in a subsequent year.

Correcting a Previously Filed Form 8966: Corrected, Amended, and Voided Reports If you are filing Form 8966 to correct or amend a previously filed Form 8966, submit the corrected information on the Form 8966 applicable to the year of the initial reporting as follows.

Corrected report. If you are filing Form 8966 to correct information submitted to the IRS in a previously filed Form 8966 in response to an IRS notification, complete Form 8966 containing the corrected information as if it were the original Form 8966 for the year in question and check the box “Corrected report.” You do not need to include a copy of the originally filed Form 8966 marked “Voided report” with the corrected Form 8966.

If the Form 8966 that you are correcting was filed