What are the requirements for filing 1042-S?

Form 1042-S is used to report U.S.-source income paid to foreign persons and the associated withholding, if any.

You generally must file Form 1042-S if you:

• Are a withholding agent (for example, a business, broker, partnership, bank, or other payer)
• Make a payment of U.S.-source income to a foreign person or entity
• The payment is:
  • Subject to withholding, or
  • Exempt from withholding but still reportable, or
  • A payment to which a treaty benefit or reduced withholding rate was applied

Common reportable payments include:

• Interest
• Dividends
• Royalties
• Rents
• Compensation for services
• Scholarship/fellowship income
• Certain corporate distributions
• Other fixed or determinable annual or periodical income

Basic filing requirements

• File a separate Form 1042-S for each recipient and often for each type of income.
• File with the IRS and provide a copy to the recipient by the required deadlines.
• If withholding was required, you must also file Form 1042 to report the total tax withheld and paid.

Deadlines

• Recipient copies: usually due by March 15 of the year following payment
• IRS filing: generally due by March 15 as well
• Extensions may be available in some cases

Important exceptions

You may not need to file 1042-S for certain payments if:

• The payment is not U.S.-source
• The payee is not a foreign person
• The payment is otherwise excluded from reporting under IRS rules

If you want, I can also give you:

1. a quick checklist for whether a payment needs 1042-S, or
2. the specific IRS rules and exceptions by payment type.