The Internal Revenue Service released a draft of the instructions for Form 1042-S November 1. The Form 1042-S for 2014 has been modified to accommodate reporting of payments and amounts withheld under FATCA (Chapter 4) in addition to those payments and amounts withheld and required to be reported under Chapter 3 of the United States Internal Revenue Code.
Form 1042-S requires the reporting of an applicable exemption to the extent withholding under chapter 4 did not apply to a payment of U.S source fixed or determinable annual or periodical (FDAP) income (including deposit interest). Form 1042-S also requires, in certain cases, the reporting of additional information about a recipient of the payment, such as the recipient’s account number, date of birth, and foreign taxpayer identification number, if any. Read more