IRS Notice Addresses Narrowing in Circumstances in Which a Foreign TIN is Required

September 28, 2017 Gerry Nelligan

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.

About the Author

Gerry  Nelligan

Gerry Nelligan is a Regulatory Analysis Supervisor at Sovos, leading a team of counsels covering information reporting, including 10-Series IRS reporting, Affordable Care Act (ACA) reporting and Automatic Exchange of Information (AEOI). Gerry received his J.D. from Suffolk University Law School and his B.A. from Providence College. He is a licensed attorney in the state of Massachusetts.

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