One of directors passed away just after Christmas. Our report of Related Interests for Reg O is as of 12/31. Do we remove him from the report?

What report?

We create an annual report of all of our insiders and their related interests. Maybe it's just an internal report we do for identifying deposit accounts and loans subject to the Reg O lending rules, so please disregard.

Tarhe, even if it's an internal report, I guess it would depend on the purpose of the report.
If it's to reflect the indebtedness of current (active) directors as of a point in time, no.
If it's to reflect the amount of lending to directors during the year, yes.
Even if it were the former, a footnote might be appropriate.

Are you talking about a survey to meet this requirement? If he has passed away, who is going to complete the survey and why?

Thank you for the comments. I agree with both - the survey was not completed. Thank you for your thoughts!