FATCA - Draft instructions for Form 1042-S for 2014 

November 5: The IRS posted a draft version (as of November 1, 2013) of the instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.

The draft instructions [PDF 483 KB] explain that Form 1042-S for 2014 has been modified to accommodate reporting of payments and amounts withheld under the FATCA* provisions (in addition to those payments and amounts withheld required to be reported under Chapter 3 of the Code).


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


Form 1042-S requires the reporting of an exemption from withholding as well as the reporting of additional information about the recipient of a payment, including the recipient's account number, date of birth, and foreign taxpayer identification number, if any.


For withholding agents, intermediaries, flow-through entities, and recipients, Form 1042-S requires that the Chapter 3 status (or classification) and Chapter 4 status be reported on the form according to codes (provided in these instructions).


Beginning January 1, 2014, financial institutions that are required to report FATCA-related payments must electronically file Forms 1042-S (regardless of the number of forms to file).


The IRS released the draft version [PDF 324 KB] of Form 1042-S for 2014 in early April 2013. It has not yet been finalized.




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