As part of the 1042-S QI reporting, QI banks have to report US income to the US Revenue Service (IRS) annually using the form 1042-S. Since the 2014 tax year, banks are required to create and submit 1042-S forms electronically. The deadline for submitting the 1042-S file is 15 March of the calendar year following the tax year.
Confinale has developed a file reporting functionality in Avaloq that allows the simple production of correctly formatted electronic 1042-S files. The final file report takes the relevant QI codes (Recipient, Exemption and Income Code) for the respective tax period into account and is updated by us annually. The functionality is being used successfully by numerous Avaloq banks.
The files comply with the format specifications of the US tax authorities (IRS) valid for the relevant tax year. Different categories of income, codes and further information are checked for plausibility according to their technical correctness. US income from non-US persons and, if necessary, from US persons (US Payee Pool) is taken into account.
Easy to use
1042-S reporting is fully integrated into Avaloq. No other systems are involved. The control is carried out by means of the common reporting functionality. Corrections can be made directly in Avaloq and have a robust audit trail.
Our solution is updated annually to new legal requirements.
Confinale's 1042-S reporting has been used successfully by numerous banks for years.