IRS Issues Form 1042 Instructions Reflecting FATCA Withholding Changes

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The Internal Revenue Service has made available final instructions for Form 1042 to reflect changes needed by withholding agents to implement the Foreign Account Tax Compliance Act, winning praise from practitioners who urged further FATCA guidance.
The instructions are to be used in filling out Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
The IRS said in the introduction to the instructions that the changes are primarily for use by withholding agents to report payments and amounts withheld under Chapter 4 of the Internal Revenue Code, which puts FATCA in place.