The IRS released a notice detailing forthcoming changes to Chapter 3 of the Internal Revenue Code ("Code") regarding reporting on Form 1042-S. Specifically, the IRS reported that the amendment will narrow the circumstances in which a Foreign TIN and date of birth ("DOB") will be required.
A phase-in period will be adopted for FIs to obtain and provide Foreign TINs from account holders documented prior to 1 January, 2018. For withholding certificates associated with payments made on or after 1 January, 2018, an account holder that does not provide a Foreign TIN must provide a reasonable explanation for its absence in order for the withholding certificate not to be considered invalid.
In addition to these changes, the notice creates some exceptions from Foreign TIN requirements for certain accounts.
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