On February 23, 2021, the IRS published the 2021 Instructions for Form 1042-S. Follow the link to review these new instructions.
• Chapter 3 Exemption Code 02. This code is now for income “Exempt under IRC.” A new footnote 7 clarifies that exemption code 02 should be used only if no other specific chapter 3 exemption code applies.
• Chapter 3 Exemption Code 24. This new code is for income that is “Exempt under Section 892.”
• Requests for extensions of time to provide statements to recipients. An extension of time to furnish the statements is now a fax-only submission. Do not send a submission by mail. Letters should be faxed to: Internal Revenue Service Technical Services Operation, Attn: Extension of Time Coordinator: Fax: 877-477- 0572 (International Fax: 304-579-4105). The letter must include the withholding agent’s name, TIN, address, type of return, a statement that the extension request is for providing statements to recipients, the reason for delay, and the signature of the payer or authorized agent.
If you’re looking for more news updates and tax tips, subscribe to our monthly newsletter here: www.complypro.com/comply-catchup/
Make sure to follow Comply Exchange for more industry updates and subscribe to the Comply Catch-up for a full industry round-up at the end of each month!