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New Reporting Requirements for Deposit Interest Paid to Residents of Chile

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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:

Antigua & Barbuda Argentina Aruba Australia
Austria Azerbaijan Bangladesh Barbados
Belgium Bermuda Brazil British Virgin Islands
Bulgaria Canada Cayman Islands Chile (new in 2022)
China Colombia Costa Rica Croatia
Curaçao Cyprus Czech Republic Denmark
Dominica Dominican Republic Egypt Estonia
Faroe Islands Finland France Georgia
Germany Gibraltar Greece Greenland
Grenada Guernsey Guyana Honduras
Hong Kong Hungary Iceland India
Indonesia Ireland Isle of Man Israel
Italy Jamaica Japan Jersey
Kazakhstan Korea Latvia Liechtenstein
Lithuania Luxembourg Malta Marshall Islands
Mauritius Mexico Moldova Monaco
Morocco Netherlands Netherlands special municipalities: Bonaire, Sint Eustatius, and Saba New Zealand
Norway Pakistan Panama Peru
Philippines Poland Portugal Romania
Russian Federation Saint Lucia Singapore Sint Maarten
Slovak Republic Slovenia South Africa Spain
Sri Lanka Sweden Switzerland Thailand
Trinidad and Tobago Tunisia Turkey Ukraine
United Kingdom Venezuela