US Source Income Reporting
If your Euro Pacific Trader brokerage account earns US source ‘fixed or determinable, annual or periodical (FDAP) income’, Euro Pacific Securities, Inc. and its brokerage custodian are mandated to report this US source FDAP income to the IRS, regardless of your residence jurisdiction.
The United States requires all withholding agents to file an information return, known as a Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, to report amounts paid to foreign persons that are described under the Amounts Subject to NRA Withholding and Reporting, which includes all Fixed or determinable, annual or periodical (FDAP) income.
IRS Expansion of Reporting Scope
Please note as of January 2017, IRS Section 871(m), has expanded the scope of reporting requirements to include single stock CFDs with a US equity as an underlying asset.