New Reporting Requirements for Deposit Interest Paid to Residents of Chile

On September 28, 2021, the IRS released an advance version of Revenue Procedure 2021-32, updating previous guidance with respect to information reporting requirements applicable to residents of certain countries. Under previous guidance, the United States only required reporting of interest on deposits held in U.S. locations that was paid to U.S. residents or to nonresident alien individuals who are residents of certain enumerated nations which have entered into tax treaties or information exchange agreements with the U.S.

Under the newly issued guidance, deposit interest of $10 or more that is paid on or after January 1, 2022, to nonresident alien individuals that are residents of Chile must be reported to the IRS on Form 1042-S.

Prior to the issuance of Revenue Procedure 2021-32, reporting was required for interest paid to residents of the following countries: