IRS Unveils New Draft of Foreign Income Reporting Form Reflecting FATCA

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The Internal Revenue Service has unveiled a new draft version of the form foreign persons use to report their U.S.-source income subject to withholding, adapted to reflect new requirements under the Foreign Account Tax Compliance Act.
One practitioner said the new version of Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, comes with a significant “learning curve” and could initially be difficult to fill out correctly.
Form 1042-S is sent to each individual foreign taxpayer, reporting payments by a withholding agent to that person during the year.


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