A significant change to electronic filing requirement for Form 1042-S has been introduced in the instructions for Form 1042-S and has been confirmed by the revisions to 2014 Publication 1187:
Beginning 1 January 2014, financial institutions that are required to report payments under chapter 3 (and chapter 4 for payments made after 30 June 2014) must file Forms 1042-S electronically (regardless of the number of forms to be filed). Indeed it has been confirmed by the Internal Revenue Service (“IRS”) QI Team in New York that only non-financial entities may still file Forms 1042-S on paper, if they are required to file less than 250 Forms 1042-S.
Therefore Luxembourg banks must file Forms 1042-S electronically with the IRS by 16 March 2015, using the Filing Information Returns Electronically (“FIRE”) System. The production of the 1042-S electronic files will need to be done using an appropriate software and such file must meet all the specifications outlined in publication 1187.
KPMG’s tax reporting specialists are at your disposal for any further information you may need with regard to the above.
The IRS posted to its internet web site Form 8966, FATCA Report, and its Instructions – each with a posting date of 31 December 2014. The final version of Form 8966 that was previously released in March 2014 and the Instructions released in June 2014 are unchanged. It is important to note the IRS provided an Update to the Instructions for Form 8966 for 2014 on 17 December 2014. These instructions were not incorporated into the recently re-released Instructions dated 31 December 2014. The update clarifies relaxed reporting requirements for 2014 including:
The FATCA Report is required to be filed by:
A separate Form 8966 should be filed for each:
Unlike the Form 1099 information reporting regime, a recipient copy is not required to be provided to U.S. persons reported on the Form 8966.
Due Date and Extensions
Form 8966 is required to be filed electronically with the IRS on or before 31 March 2015 for 2014 calendar year information. For calendar year 2014 only, an automatic 90-day extension is permitted to any filer without the need to complete an application – effectively moving the extended deadline to file Form 8966 to 30 June 2015.
For Your Reference
Form 8966 can be accessed by clicking here:http://www.irs.gov/pub/irs-pdf/f8966.pdf (PDF, 81 KB)The Instructions to Form 8966 can be accessed by clicking here:http://www.irs.gov/pub/irs-pdf/i8966.pdf (PDF, 227 KB)
The Update to the Instructions for Form 8966 for 2014 can be accessed by clicking here:Update-to-the-Instructions-for-Form-8966-For-2014
The Treasury Department has added text of two FATCA intergovernmental agreements (IGAs) signed in December - one signed between representatives of the United States and representatives of Bulgaria on 5 December 2014, and the other with Curaçao signed on 16 December 2014. Both are listed as Model 1 IGAs on the Treasury website (as of January 2015).
For further information, please do not hesitate to contact us.
Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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