FATCA - Draft instructions for Form 1042 for 2014 

November 7: The IRS posted a draft version (as of November 6, 2013) of the instructions for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.

The Form 1042 draft instructions [PDF 329 KB] explain that Form 1042 for 2014 has been modified primarily for withholding agents to report payments and amounts withheld under the FATCA* provisions (in addition to those payments and amounts withheld and required to be reported under Chapter 3 of the Code).

*Foreign Account Tax Compliance Act provisions that are contained in Chapter 4 of the Code.

Form 1042 is used to report tax withheld for FATCA purposes for payments made to entities that are classified as nonparticipating foreign financial institutions, certain passive nonfinancial foreign entities, and “recalcitrant” account holders of participating and registered deemed-compliant foreign financial institutions.

Form 1042 is also used to report payments reported on Form 1042-S.

The IRS released a draft Form 1042 [PDF 142 KB] for 2014 in April 2013. It has not yet been finalized.

©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this


Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.

Email your contact information.

TaxNewsFlash-United States by year