Withholding agents, including Qualified Intermediaries, that make U.S. sourced payments to foreign persons (including persons presumed to be foreign) or those included in a U.S. payee pool that are reportable under chapters 3 and 4 must file Form 1042-S regardless of whether tax was withheld.
The face of the 2016 version of Form 1042-S contains new fields and new codes; in addition, a significant number of the existing fields have been renumbered. In addition, the IRS removed dividend income code 21 (gross income-capital gain dividends), provided new guidance on substitute forms, implemented account-by-account reporting, and announced the permanent extension of Regulated Investment Companies (RICs) as qualified investment entities under FIRPTA.
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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