November 1, 2013: IRS Releases Draft Instructions for Form 1042-S
Foreign Account Tax Compliance Act (FATCA)
Draft instructions for Form 1042-S for 2014
The IRS has released draft instructions for the 2014 Form 1042-S, which incorporates the changes to the Form that were required in conjunction with FATCA. In addition to detailed definitions and guidance on how to complete the various boxes on the new Form, the instructions provide a transitional rule for reporting on amounts that are paid on or before June 30, 2014. For those payments, it is not obligatory to include the information required by FATCA on the Form 1042-S. However, if the withholding agent makes a payment to the same recipient after June 30, 2014 it would need to complete a separate Form 1042-S including all of the information required by FATCA.
The instructions also confirm that beginning January 1, 2014, all financial institutions required to report payments under FATCA will need to file Forms 1042-S electronically regardless of the number of forms that they are filing.
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