The Internal Revenue Service (IRS) is aggressively employing agents to pursue tax withholding compliance. That includes mechanisms for businesses to comply with the Foreign Account Tax Compliance Act (FATCA) and Chapter 3 withholding. The effort began with financial institutions, but it has expanded its focus on multinational companies and accounts payable functions. As part of this new compliance initiative, the IRS has drafted audit guidelines in its Internal Revenue Manual (IRM) and trained more than 3,000 examiners who are charged with auditing 1042-S forms. Companies that do not provide the required tax documentation risk withholding penalties and additional compliance exposure.

Download now for everything you need to know about 1042-S, FATCA Rules, Chapter 3 Withholding Compliance, and more.