1042-S QI-Reporting in Avaloq

Numerous banks have been relying on our expertise for many years to determine which data, in which format, must be submitted to the US tax authorities (IRS) as part of the 1042-S reporting process. Since the specifications change practically every year, these institutions benefit from our monitoring and the continuous updating of our solution. We understand all tax regulations that control the exchange of tax data with the IRS.

We are also very familiar with the mandatory customer monitoring and documentation processes related to QI. During implementation, we take into account the existing QI setup of each bank and can make recommendations on how this can be optimised. Our 1042-S reporting solution for Avaloq banks is a prime example of our approach: specialist expertise and IT implementation from a single source.

Your contact:

Pascal Inauen
Associate Partner

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Which criteria must the 1042-S QI-Reporting fulfil?

As part of the 1042-S QI Reporting, QI banks, so-called Qualified Intermediaries, report US income to the IRS annually. The data must be submitted electronically, in each case by March 15 of the calendar year following the tax year at the latest.

How do we elegantly solve these challenges? 

Confinale has developed a functionality in Avaloq that easily produces correctly formatted electronic 1042-S reports. The relevant QI codes (Recipient, Exemption and Income Code) of the respective tax period are taken into account. Different categories of income, codes and other information are checked for plausibility.

Our solution, which is updated annually, is successfully in use at numerous Avaloq banks.

Correctly formatted

The reports comply with the format requirements of the IRS for the fiscal year. US income of non-US persons and, if necessary, also that of US persons (US Payee Pool) is taken into account.

Fully integrated

1042-S Reporting is integrated into Avaloq without any interruptions. It is controlled using the reporting functionality. Manual corrections can be made directly in Avaloq and come with a robust audit trail.

Annual adjustments

Our solution is professionally and technically reviewed by our tax specialists. The requirements for our solution are reviewed and implemented annually.

Satisfied customers

Our solution has been used successfully by numerous Avaloq banks for years. Please feel free to ask for references.

Our offer

May we advise you on 1042-S Reporting or support you in other Tax or Compliance issues? We also offer solutions for CRS and FATCA, 871(m) or DBA group requests.