U.S.A.: Issuance of draft IRS Form 1042-S
Next week we will send to those of our customers with withholdable / reportable payments under U.S. withholding tax rules for the year 2015 a draft of the IRS Form 1042-S (“Foreign Persons U.S. Source Income Subject to Withholding”) recording their Clearstream Banking1 activities along new features developed to ease their internal reconciliation exercise.
Purpose of the draft IRS Form 1042-S
Every year, customers having received withholdable / reportable payments of U.S. source are confronted to a thorough reconciliation exercise in order to identify the data that will have to be included in their own IRS Form 1042 or Form 1042-S.
Our draft 1042-S and additional supporting documentation will allow customers to perform this internal reconciliation with what they plan to include in their own IRS Form 1042 or Form 1042-S, thereby identifying any potential discrepancies before submitting the definitive version.
Queries and modification requests, if any, must be provided no later than 15 February 2016.
We provide these draft forms for information purposes only. We do not warrant the accuracy of the data provided. Furthermore, information concerning tax reporting does not constitute legal or tax advice.
Clearstream U.S. tax reports
Customers will notice that the draft of the IRS Form 1042-S will be accompanied by supporting documentation aiming at simplifying their internal reconciliation exercise:
- A summary of the 1042-S forms we filed for customer accounts listing the amounts reported per income code, Chapter 3 and Chapter 4 exemption code as well as tax rate, per account;
- A table with the full details of all payments per account that have been included in each of the draft 1042-S.
In addition, for the convenience of our customers, an Operational News will be published in due time providing guidance on how to quickly obtain a similar file with the full details of taxable U.S. payments reported on customer account(s) in an Excel format by email. These reports will be the static match of the amounts reported on the 1042s drafts.
Furthermore, we remind customers that full details of taxable U.S. payments for their accounts are also available in the “US Withholding Tax Report”, that can be requested via CreationOnline. This data is “real-time” data, and will reflect the possible modification of payments on the account after the emission of the draft 1042s.
Final reporting deadline
Pursuant to the IRS statutory deadline for issuing information reporting, the final IRS Form 1042-S will be issued by 15 March 2016.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.