IRS Updates Tax Forms and Publication 515 (on Withholding) to Reflect Guidance Regarding FATCA

On January 5, 2015, the IRS issued revised Form 1042-S to reflect recent guidance with respect to FATCA. The Form is used by withholding agents to report U.S. source income subject to withholding tax.

To reflect recently finalized regulations, the IRS also issued a revised version of Form 8938, which must be filed by certain U.S. persons with their tax returns to report their interests in "specified foreign financial assets," which include foreign financial accounts, as well as their interests in certain stocks, securities and financial interests and contracts issued by non-U.S. issuers.

Additionally, the IRS published a new version of IRS Publication 515 ("Withholding of Tax on Nonresident Aliens and Foreign Entities"). The new version provides detailed guidance to withholding agents who make payments to non-U.S. individuals and entities that could be subject to income tax withholding or withholding under FATCA. According to the IRS, the revision of Publication 515 was delayed so that it could incorporate new guidance and definitions under FATCA.

See: Revised Form 1042-S; Revised Form 8938; Revised IRS Publication 515.See also: FATCA Specialty Page (available to Cabinet subscribers only).For more information, please contact Dan Mulcahy or Mark Howe.