PEQ Newsletter
PEQ QI Information 01/2011




The 1042 reporting deadline of 15 March is very close. Be sure to file either the required forms or request an automatic extension of time to file by the deadline.


Filing Paper Forms:

The 1042, 1042-T & 1042-S forms, if you are filing via paper, must be mailed to the following address:


Ogden Service Center

P.O. Box 409101

Ogden, UT 84409



Be sure to mail the forms in a flat envelope and to retain proof that you mailed the tax forms on time.


Extension Requests:

In order for the extension request to be accepted it must be filed with the IRS by 15 March.


For an automatic 6-month extension of time to file the Form 1042, use the Form 7004. Send this form to:


Internal Revenue Service Center

P.O. Box 409101

1973 North Rulon White Boulevard

Ogden, UT 84409



For an automatic 30-day extension of time to file Forms 1042-S, use the Form 8809. Send this form to:


Internal Revenue Service

Information Returns Branch

Attn: Extension of Time Coordinator

240 Murall Dr.

Mail Stop 4360

Kearneysville, WV 25430



Please note that you may request an additional extension of time for the Forms 1042-S if you require it. In this case it is very important to list the reason why you need additional time (i.e. will not receive upstream custodian reporting until xx date, etc). Otherwise the request will be denied by the IRS.


It is now also possible to complete and submit the Form 8809 online: In order to do this, you will need to be registered for an account on the FIRE system.


Link to Forms:

You can find all the necessary forms and instructions on our website: 1042 Reporting Forms for 2010.


Common Errors in 1042 Reporting:

Based on our experience and review of 1042 forms, please ensure that you check for the following common errors:

  • Do not forget to check the “QI/Withholding Foreign Partnership or Trust” box
  • Do not forget to attach the 1042-S forms you received to support the amount in Line 66
  • Do not forget to use the correct format for numbers:
    • xx.xx for tax rate (i.e. 00.00 for 0%)
    • -0- if no tax was withheld (Boxes 7 through 9)
  • Include tax amounts that you paid directly to IRS in Box 7. Include amounts that your custodians withheld and paid for you in Box 8.

We recommend that you have your expert review your filled-in forms before sending them to the IRS.






There have been changes made to the 1042-S forms to accommodate Qualified Securities Lenders (QSLs). Please note the following changes:

  • There is an automatic extension of time to file Forms 1042-S for recipients of substitute dividend payments if those payments were made after 15 September 2010.
  • There is an automatic extension of time to deposit tax on substitute dividend payments made after 15 September to 31 January 2011.
  • New income, recipient and exemption codes have been introduced: Income Codes (40, 34); Recipient codes (21, 22); Exemption code (10). 


If you or your client banks are QSLs and require assistance in performing the 1042 reporting for substitute dividend payments, please do not hesitate to contact us for support. 





The current QI-Audit Request Waiver Forms 2010 are now available for download. You can download the forms along with the instructions from our website: QI-Audit Request Waiver Forms 2010.


The deadline for submission is 30 June 2011.


We recommend having your QI expert review the waiver package before submitting it to the IRS.





Starting this year, you may only make payments to the IRS via the EFTPS system. The IRS no longer is accepting checks or payments filed with the 8109-B forms. More information regarding EFTPS can be found here:





On 22 November 2010, the US Department of Treasury issued Treasury Decision 9504 regarding the final regulations 'Basis Reporting by Securities Brokers and Basis Determination for Stock' regarding cost-basis 1099-B reporting. To the relief of many non-US payor QIs that perform 1099-B reporting, non US payors have been excluded from the requirement.


For more information, please read chapters 'd. Foreign intermediaries', 'e. Treatment of foreign securities' and the following chapters in the T.D. 9504.





On 27 August 2010, the Department of Treasury issued Notice 2010-60 to propose initial implementation guidance of the new FATCA law.


The guidance is provisional, and on most points the Department has requested comments from the industry.


Currently, additional draft guidance is expected in late spring/early summer of this year. The IRS still welcomes comments on their suggestions in Notice 2010-60.





Should you have any questions regarding the information discussed in this newsletter, please do not hesitate to contact:


Julia Mills, Partner


Falkenstrasse 30

8032 Zurich

Phone: +41 44 253 67 67

Fax: +41 44 253 67 69


Should this newsletter be incorrectly displayed in your e-mail, please refer to our website:

PEQ QI Information 01/2011.


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