Withholding agents, including Qualified Intermediaries, that make U.S. sourced payments to foreign persons (including persons presumed to be foreign) or those included in a U.S. payee pool that are reportable under chapters 3 and 4 must file Form 1042-S regardless of whether tax was withheld.
The face of the 2016 version of Form 1042-S contains new fields and new codes; in addition, a significant number of the existing fields have been renumbered. In addition, the IRS removed dividend income code 21 (gross income-capital gain dividends), provided new guidance on substitute forms, implemented account-by-account reporting, and announced the permanent extension of Regulated Investment Companies (RICs) as qualified investment entities under FIRPTA.
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