PEQ Newsletter
PEQ QI Information 01/2010 Update

UPDATE: IRS Amendment to the 1042 Form Instructions

 

Please note that the IRS has newly stipulated in the instructions to Form 1042 that all QIs and NQIs that claim an amount on Line 66 for amounts withheld by the upper-tiered withholding agents must support this amount by attaching copies of the 1042-S forms issued to them. Previously this was only required when claiming a refund for an overpayment.

 

If you have already filed your 1042 forms, then you may receive a letter from the IRS denying the amount in Line 66. You will be able to correct this by resubmitting the forms to the IRS, plus the copies of the supporting 1042-S forms.

 

You may, of course, also submit the copies of the forms to the IRS at this time.  Simply be sure to include your QI-EIN, as well as "Form 1042, Tax Year 2009" on any correspondence you send to the IRS. We also advise writing a short letter as well as including a copy of the 1042 form you already filed.

 

Some of you may not yet have been issued the 1042-S forms by your upper-tiered custodians, but still wish to file by the 15 March deadline. You may do so, keeping in mind that you may receive the above-mentioned letter from the IRS. Alternatively you can follow the instructions above to submit the copies of the 1042-S forms when you receive them.

 

If you have any questions or concerns, please do not hesitate to contact us.