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

Sovos
September 28, 2017

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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Sovos

Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction controls, tax reporting and more. Sovos customers include half the Fortune 500, as well as businesses of every size operating in more than 70 countries. The company’s SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates.
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