Instructions for Form 1042 - Introductory Material


Table of Contents

Future Developments

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.

What’s New

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.


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