Comply Exchange has rounded up the most significant regulatory developments across FATCA, CRS and IRS reporting for February 2026, covering everything from imminent filing deadlines to sweeping system changes that financial institutions need to prepare for now.
Bahamas AEOI reporting window closing
Financial institutions operating under the Bahamas’ AEOI framework have until 31 March 2026 at 5pm EST to complete their FATCA and CRS submissions through the reporting portal.
Forms 1042 and 1042-S: deadlines have now passed
The deadline for filing Form 1042 — the annual withholding tax return for US source income of foreign persons — was 16 March 2026. Form 1042-S, which covers foreign persons’ US source income subject to withholding, carried the same deadline both for IRS filing and for distribution to recipients. Organisations that missed the deadline should note that Form 7004 provides an automatic six-month extension for Form 1042, though any taxes owed must still be settled on time.
FIRE system retirement confirmed
The IRS has confirmed it will decommission the Filing Information Returns Electronically (FIRE) system in January 2027, bringing to an end a platform that has underpinned electronic reporting since the 1980s. The 2025 tax year will be the final reporting cycle for which FIRE can be used. From 2026 reporting onwards — filed in early 2027 — organisations will be required to submit through the IRS’s new Information Returns Intake System (IRIS). Financial institutions are advised to begin preparing for this transition well in advance.
IRS updates QI, WP and WT guidance
The IRS updated its frequently asked questions page covering qualified intermediary (QI), withholding foreign partnership (WP) and withholding foreign trust (WT) agreements in February 2026. A key update to FAQ1 clarified that entities operating under WP or WT agreements established through Revenue Procedure 2017-21 are not required to renew those agreements for the 2023 year.
Jurisdiction updates: Australia, Canada, Cayman Islands and Singapore
Across major reporting jurisdictions, several noteworthy changes have emerged. In Australia, the Australian Taxation Office updated its FATCA reporting tools and CRS specifications, including revisions to the FATCA Small Reporter Tool and CRS schema guidance used when preparing XML reports.
In Canada, the Canada Revenue Agency has continued updating its CRS and FATCA due diligence guidance, with revised tax residency self-certification forms and enhanced electronic validation checks for information return filings coming into effect from 2026.
In Singapore, the Inland Revenue Authority of Singapore published the 2025 CRS Reportable Jurisdictions list on 2 February 2026, updated its Participating Jurisdictions list with immediate effect, and released an updated AEOI TIN Guide. A new CRS XML Schema User Guide was also published on 30 January 2026, applicable to submissions from 1 January 2027.
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