2021 News for QI, FATCA and CRS
- Index
- 2021.03 What’s new on 1042
- 2021.02 What’s new on 1042-S forms
- 2021.01 Fire Portal
- 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
2021.03 What’s new on 1042
The content of the Form 1042 for fiscal year 2020 remains unchanged, with only two explanatory notes added with respect to the previous year:
- On page 1, a “Note” has been inserted under the “Record of Federal Tax Liability” (lines 1 to 60). It clarifies that the totals of the “Record of Federal Tax Liability” table are inserted in rows 64b to 64d, as indicated in the instructions.
- On page 2, a header (“Computation of Tax Due or Overpayment”) has been inserted above lines 64a to 71, to indicate that those lines pertain to the computation of the tax due to the IRS or overpayment.
2021.02 What’s new on 1042-S forms
There are no major changes for QI when filling in the 1042-s forms for 2020.
1042-s printable form
Three new features have been introduced in the paper format. The first is the possibility, for a partnership or a trust, to withhold and report in a subsequent year, designating a specific deposit of the withholding as attributable to the preceding year.
The second new feature concerns the updating of the Chapter 3 Status Code. Codes 01 (US Withholding Agent – FI), 02 (US Withholding Agent – Other) and 34 (US Withholding Agent – Foreign branch of FI) are no longer valid. Instead, codes 36 (Foreign Government – Integral Part) and 37 (Foreign Government – Controlled Entity) have been added. Finally, for code 19, the description has been updated from “Government or International Organization” to “International Organization.”
The third new feature is the possibility of inserting the “US” code in box 12f (Country Code) if the withholding agent is a U.S. person or a foreign branch of a U.S. person.
1042-S electronic file for FIRE platform
The three changes above are also incorporated into the electronic format of the form.
If the withholding agent is a partnership or a trust that is permitted to withhold in a subsequent year, it must enter the code “1” in the “W records”, at position 883.
Instead, the new Chapter 3 Status Code can be inserted in the “W records”, at position 533-534 (Withholding Agent’s Chapter 3 Status Code) and in the “Q records” at positions:
- 786-787 (Recipient’s Chapter 3 Status Code)
- 850-851 (Intermediary’s or FTE’s Chapter 3 Status Code)
- 984-985 (Payer’s Chapter 3 Status Code)
Finally, the US code can be inserted in the “W records”, at position 258-259.
You can download the latest IRS publications “Instructions for Form 1042-S” and “Publication 1187” from this page.
2021.01 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 5, 2021.
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 January 8, 2021.
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.