U.S.A.: IRS publishes instructions for Form 1042-S for 2018

Further to announcement A17191, Clearstream Banking would like to inform its customers that the U.S. Internal Revenue Service (IRS) published instructions for Form 1042-S to be used by the withholding agent to report U.S source income subject to withholding that is paid to foreign persons.

The related instructions, released on 7 March 2018, mainly provide:  

•  two new sections “Requirement To Withhold” and “Before Completing Form 1042-S”. They have been added to clarify a withholding agent's obligations under chapters 3 and 4 and provide general steps that should be considered when completing Form 1042-S;
• guidance on how to report payments on Form 1042-S that are made to and by qualified derivative dealers (QDDs);
• updated requirements for 2018 for when a financial institution must report an account holder's foreign taxpayer identification number (FTIN).

For more details, we invite customers to find the relevant IRS Form 1042-S and related instructions on the IRS website.

We continue to monitor the IRS publications and will provide customers with further information in due course.