EBF letter to IRS on Elimination of Automatic Extension to
Publication date: 12 November 2015
Elimination of automatic extension to file certain forms
I am writing to you as Chief Executive of the European Banking Federation (EBF) which is the voice of European banks, uniting 32 national banking associations in Europe that together represent some 4,500 banks – large and small, wholesale and retail, local and international – employing about 2.5 million people. Launched in 1960, the EBF is committed to creating a single market for financial services in the European Union and to supporting policies that foster economic growth.
On 13 August 2015 the IRS published final and temporary regulations that remove the automatic extension of time to file certain information returns, including Forms 1042-S and 1042. These changes are due to come into effect in time for the 2017 filing season1 . While we fully understand the IRS’ rationale behind the changes, and appreciate the importance of combating identity theft and refund fraud, we have concerns that this measure, if adopted in its current form, would put a significant strain on non-US banks and their ability to file Forms 1042 correctly as part of their FATCA and QI compliance requirements.