QIS News & Alerts: IRS Announces Exemption for QIs from Form 1042 Electronic Filing Requirement

The IRS announced in Notice 2024-26, released on 27 February 2024, that QIs are exempt from the Form 1042 electronic-filing requirement for returns due in 2024 (tax year 2023) and 2025 (tax year 2024). This administrative exemption is automatic and no action is required on the part of QIs.

Final regulations published in 2023 required financial institutions to electronically file Form 1042 beginning with returns due in 2024. Stakeholders have raised several concerns regarding the electronic-filing requirement, as discussed in our QIS News & Alerts in January 2024.

The administrative exemption announced in Notice 2024-26 hopefully should provide sufficient time for QIs to implement changes necessary to satisfy the electronic-filing requirement. QIS will continue to monitor this situation and will communicate relevant updates.