QI Reporting, CRS and FATCA News
- 2020.03 – News on FATCA deadline
- 2020.02 What’s new on 1042
- 2020.01 – What’s new on 1042-S forms
- 2020.01 Fire Portal
News on FATCA deadline
On 25th March 2020, Internal Revenue Service announced that the deadline for submitting FATCA reports (Form 8966) for Reporting Model 2 FFI and Participating FFI was postponed. The IRS communication has been included in the Reporting section on the page FATCA – FAQs General.
The new deadline for submitting FATCA Form 8966 for the fiscal year 2019 is extended from 31st March 2020 to 15th July 2020. The extension is automatic and does not require FFIs to submit Form 8809-I.
2020.02 What’s new on 1042
Instructions for 2019 tax year, introduced on form 1042 the following changes:
- All amounts on 1042 need to be rounded to whole dollars.
- Reliance on proposed regulations reducing burden under FATCA and Chapter 3, concerning 1) Withholding and reporting in a subsequent year and (2) Adjustments to overwithholding under the reimbursement and set-off procedures.
- Schedule Q (Form 1042), Tax Liability of Qualified Derivatives Dealer (QDD), need to be attached to 1042 for each QDD.
2020.01 – What’s new on 1042-S forms
What’s new for Tax Year 2019
There are no major changes for QI when filling in the 1042-S forms for 2019.
1042-S paper/pdf form
Two new features have been introduced in the paper format. The first is the introduction of the income code 55 for “Taxable death benefits on life insurance contracts.” The second introduces a new box in the 1042-S module. The box is the 7c and has been added to indicate the corporate interest occurred to a partnership in the following year.
1042-S electronic/txt file
The two changes above are also incorporated into the electronic format of the form. The new income code can be used in the position 4-5 of the “Q records”, while in the field 999, always of the “Q records”, it will be indicated “1” if the check of the field 7c has been crossed in 1042-S paper.
You can download the latest IRS publications “Instructions for Form 1042-S” and “Publication 1187” from this page.
2020.01 Fire Portal
FIRE Test Portal
IRS informs that the FIRE TEST portal (https://fire.test.irs.gov), for the submission of test forms 1042-S and 1099, will be available from January 2, 2020.
FIRE Production Portal
IRS informs that the FIRE production portal (https://fire.irs.gov), for the submission of forms 1042-S and 1099, as well as their extensions, will be available from 8 January 2020.