New Forms, Guidance and FAQs
FATCA, chapter 3 reporting - IRS releases final Form 1042-T
On 13 May, the IRS posted a final version of Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, for 2014.
Form 1042-T (PDF, 105KB) is to be used to transmit paper Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to the IRS.
Form 1042-S - 2014 (PDF, 100KB) is to be used by financial institutions and withholding agents for reporting amounts subject to withholding under chapter 3 and to report certain reportable payments for purposes of FATCA.
The instructions included as part of Form 1042-T provide, in part:
- A separate Form 1042-T is to be used to transmit each type of Form 1042-S.
- If 250 or more Forms 1042-S are filed, they must be submitted electronically (and Form 1042-T is not to be used).
- If less than 250 Forms 1042-S are filed, filers are encouraged to file them electronically.
- Financial institutions are required to submit Form 1042-S electronically in all instances.
- If a Form 1042 has already been filed and an attached Form 1042-S causes the gross income or tax withheld information shown on the previously filed Form 1042 to change, an amended Form 1042 must be filed.
Cayman Islands - Draft FATCA guidance notes released for comments
On 12 May, the Cayman Islands released a first draft of FATCA guidance notes concerning the compliance requirements of the intergovernmental agreement (IGA) between the Cayman Islands and the United States and between the Cayman Islands and the United Kingdom.
The 221-page draft guidance notes (PDF, 2MB) were released for industry comments and feedback.
The guidance notes are intended to provide practical assistance to industry in interpreting the FATCA agreements with the United States and the UK, and will be a key component of Cayman’s automatic exchange of information regime for implementing the agreements.
The FATCA Working Group also established an IT subgroup to focus on technical modalities for the automatic exchange of information for tax purposes, and will be intended to follow published IRS rules.
Hong Kong - FAQs issued by authorities about FATCA
Hong Kong and the United States substantially concluded discussions on an inter-governmental agreement (IGA) for use by financial institutions in Hong Kong to comply with U.S. legislation known as FATCA. Following the completion of the substantive discussions, Hong Kong and the United States are expected to sign a Model 2 IGA.
Hong Kong’s Financial Services and the Treasury Bureau released a list of “frequently asked questions” (FAQs) about the FATCA regime.
Read the FATCA FAQs (PDF, 60KB)
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