Foreign Income & Taxpayers
Form 1042 Information Reporting Requirements
1 Secs. 1441 and 1442; Regs. Secs. 1.1441-1 through -9.
2 Secs. 1441(a) and 1442(a).
3 Id.; Regs. Sec. 1.1441-6.
4 “U.S. person” includes U.S. citizens and residents, domestic partnerships and corporations, and certain trusts and estates. See Sec. 7701(a)(30).
5 TD 8881, Section B.2.
6 Sec. 1441(b).
7 Regs. Sec. 1.1441-3(a).
8 Regs. Sec. 1.1441-1(b).
9 Regs. Sec. 1.1441-3(c). A distribution is taxable as a dividend to the extent of a corporation’s current and accumulated earnings and profits (E&P). All distributions are first deemed to come out of current E&P. See also Secs. 301, 316, and 317.
10 Sec. 871(g)(1)(b)(i) excludes from the definition of OID any obligations outstanding for 183 days or less.
11 Sec. 871(a) generally duplicates the withholding requirement.
12 Regs. Sec. 1.1441-2(b)(3)(i).
13 Regs. Sec. 1.1441-2(b)(3). The IRS list of OID instruments is available at www.irs.gov/formspubs/article/0,,id=109875,00.html. This list is no longer published in Pub. 1212, Guide to Original Issue Discount (OID) Instruments.
14 Sec. 1441(c)(1).
15 Secs. 1441(c)(9), (c)(10).
16 Regs. Sec. 1.1441-1(b)(2)(i).
17 Sec. 7701(a)(16).
18 Regs. Sec. 1.1441-7(a)(1).
19 Regs. Sec. 1.1441-1(b)(2)(i).
20 Regs. Sec. 301.6114-1(a)(2)(i).
21 In practice it may also be advisable to attach the disclosure to the income tax return (Form 1120, U.S. Corporation Income Tax Return) as well as Form 1042.
22 Regs. Sec. 301.6114-1(c)(6)(i).
23 Regs. Sec. 301.6114-1(c)(8)(i).
24 Regs. Sec. 301.6114-1(c)(7).
