Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

March 1, 2024

Report on recent US international tax developments - 1 March 2024

The IRS issued Notice 2024-26 on 27 February, exempting US and foreign withholding agents from electronically filing Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, for calendar year 2024. For US withholding agents, the electronic filing requirement is not required for 2023 Form 1042 (due 15 March 2024, or six months later by extension). For non-US withholding agents, electronic filing is not required for 2023 and 2024 Forms 1042 (due 15 March 2024 and 15 March 2025, respectively, or six months later by extension).

Form 1042 is an annual information return submitted by withholding agents to provide various information, including details on withholding tax liabilities, deposits for nonresident alien withholding under IRC Sections 1441 through 1443, and Foreign Account Tax Compliance Act (FATCA) withholding under IRC Sections 1471 through 1473. The return has historically been a paper ("wet ink" signature) mailing to the IRS. In February 2023, Treasury and the IRS published final regulations on electronic filing (e-filing) requirements that require certain withholding agents, including financial institutions and partnerships with at least 100 partners, to e-file Form 1042 and Form 1042-S starting with their 2023 reporting (to be filed with the IRS in 2024).

Note that the relief in Notice 2024-26 is automatic (i.e., no further action needs to be taken by the withholding agent) and the Notice will not treat a Form 1042 that is timely submitted on paper as a failure to file. A Global Tax Alert provides details.

A senior IRS official this week elaborated on recently announced changes to the IRS private letter ruling (PLR) program. The IRS in January 2024 issued Revenue Procedure 2024-1 and Revenue Procedure 2024-3, significantly broadening the scope of available letter rulings relating to certain issues under IRC Sections 332, 351, 355, 368 and 1036. The official was quoted as saying that the IRS will no longer issue significant single-issue rulings, but instead only entertain "transactional rulings." The official added that decisions on what could be considered included in a particular transaction would be made on a case-by-case basis.

The Senate on 29 February approved the nomination of Marjorie Rollinson to be the next IRS Chief Counsel. Rollinson spent the majority of her career at EY, retiring as Deputy Director of National Tax, and has held several senior positions at the IRS.

The OECD Council on 19 February approved an update to the commentary on Article 26 of the OECD Model Convention, dealing with exchange of information. According to an OECD announcement, the "update clarifies that information received through administrative assistance can be used for tax matters concerning persons other than those in respect of which the information was initially received. It also provides interpretative guidance on confidentiality, in particular regarding the access of taxpayers to information exchanged when such information has a bearing on their tax situation and regarding reflective non-taxpayer specific information, including statistical data, about or generated on the basis of exchanged information."

* * * * * * * * * *
Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young LLP (United States), International Tax and Transaction Services, Washington, DC

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more