Instructions for Form 1042 - Introductory Material
For the latest information about developments related to Form 1042 and its instructions, such as legislation enacted after
they were published, go to www.irs.gov/form1042.
Foreign Account Tax Compliance Act (FATCA or Chapter 4 of the Code).
The Form 1042 for 2014 has been modified from the Form 1042 used for prior years, primarily for withholding agents to report
payments and amounts withheld under chapter 4 of the Code (chapter 4) in addition to those payments and amounts required to
be reported under chapter 3 of the Code (chapter 3). Form 1042 adds lines for reporting of the tax liability under chapters
3 and 4, includes separate chapter 3 and 4 status codes for withholding agents, and provides for a reconciliation of U.S.
source fixed or determinable annual or periodical (FDAP) income payments that are withholdable payments for chapter 4 purposes.
Withholding agents that make nonfinancial payments generally will not be affected by the new requirements under chapter 4.
See these instructions for a description of any further changes to Form 1042 for 2014. For the requirement of a withholding
agent to file a Form 1042 for chapter 4 purposes and the requirements for the form, see Regulations section 1.1474-1(d).
Publication 515 (cited in these instructions) has not been updated as of the date of publication of these instructions to
include the withholding and reporting provisions of chapter 4.