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When to Report 1042-S Foreign Customer?

Question: 
If a foreign customer has a Taiwan Passport to open the account and the permanent address is Canadian, should we report as 1042-S?
Answer: 

It's possible that your customer has dual citizenship with Taiwan and Canada, but your records only establish citizenship in Taiwan. As Taiwan is not on the current IRS list it appears you are not required to report the interest paid to this individual on a Form 1042S, but you could be in the future if the list is changed.

Some banks have decided to just report all NRA interest on a 1042S (assuming no 1099INT is required) and let the government sort them out.

First published on 02/03/2014

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