U.S.A.: Deadline to request a 1042-S reporting for customers with own assets accounts

15.06.2021

Following Announcement A19142, Clearstream Banking¹ informs customers that have opened an account for their own assets that the deadline to request a 1042-S reporting for fiscal year N is

15 February N+1

Background

Clearstream Banking, acting as U.S. Qualified Intermediary (QI), issues yearly 1042-S reporting to the U.S. Internal Revenue Service (IRS) and to the recipients (that is, directly to Clearstream Banking QI customers, or to the final beneficial owners if the Clearstream Banking customer is Non-qualified Intermediary) of U.S. taxable income.

If the Clearstream Banking customer is the final beneficial owner, the default rule applied by Clearstream Banking is that no 1042-S reporting is issued to the customer as the U.S. taxable income is reported on the basis of pools to the U.S. Internal Revenue Service.

However, in some instances, Clearstream Banking customers acting as final beneficial owners may need to receive a specific 1042-S reporting. As the issuance of such 1042-S reporting would also have an impact on Clearstream Banking's 1042-S reporting to the IRS, Clearstream Banking must make sure to be able to treat the request from an operational point of view within the official 1042-S deadlines set by the IRS.

Impact on customers

Clearstream Banking customers that have opened an own assets account and that want to receive a 1042-S for fiscal year N should send their request to Clearstream Banking before the above deadline. Any request received after this deadline will be handled on a 'best-efforts' basis by Clearstream Banking.

How to instruct

The 1042-s request should be sent via MT599 to the attention of Clearstream Banking Tax Processing Luxembourg, and specify:

• The subject: 1042-S request for own assets account - fiscal year N;
• The relevant account number(s) (please mention all the own assets accounts for which the request is made on the same SWIFT);
• If the request is sent after the above-mentioned deadline, the following statement should also be added on the SWIFT template: 'as our request is sent after the deadline set by [Clearstream Banking S.A. / Clearstream Banking AG], we acknowledge that [Clearstream Banking S.A. / Clearstream Banking AG] may not be able to treat our request prior to the 1042-s reporting deadlines set by the IRS for fiscal year [N]. As a result, [Clearstream Banking S.A. / Clearstream Banking AG] may debit our account or otherwise reclaim from us and we will pay [Clearstream Banking S.A. / Clearstream Banking AG] on demand any amount of penalties charged by the IRS and resulting from such late request of issuance of Form 1042-s in our name'.

Further information

For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

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