On March 5, 2014 the Internal Revenue Service released new versions of three critical forms
to help financial institutions and withholding agents meet the requirements of
the Foreign Account Tax Compliance Act, including draft versions of Form 8966
and Form 1042-S, and a final version of Form 1042.
Form
8966, FATCA Report, is a new form that foreign financial institutions
(FFIs) would use to report information on their U.S. account holders under the
2010 law. The statute requires FFIs to report accounts held by U.S. taxpayers
to the IRS or face, in some cases, a 30% withholding tax on certain U.S. source
payments that are made to them.
Form 1042-S now
incorporates FATCA and includes ways to account for withholding under Chapter 4
of the tax code. In one specific update to the new draft, the IRS added a space
for a payer's Global Intermediary Identification Number in situations where the
payer and the withholding agent aren't the same.
Do You Have Unreported Foreign Income?
Contact the Tax Lawyers at
Marini & Associates, P.A.
for a FREE Tax Consultation
Toll Free at 888-8TaxAid ((888) 882-9243)
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