What Is IRS Form 1042 and Who Must File It?
What Is Form 1042 Who Must File Form 1042 You must file Form 1042 if you are a withholding agent […]
1042 / Foreign Reporting
IRS Form 1042-S reports U.S.-source income paid to non-U.S. persons. Withholding agents use it to list payments like scholarships, fellowships, royalties, dividends, and gambling winnings. Form 1042 is the annual return that summarizes total withholding reported on 1042-S.
1042 / Foreign Reporting
Hiring International Contractors? When to Use 1099 vs. 1042-S
Hiring international contractors requires following IRS reporting rules. Whether you issue Form 1099-NEC or Form 1042-S depends on the contractor’s
Countries With U.S. Income Tax Treaties for Form 1042-S Withholding Credits
The United States has income tax treaties with many countries that may allow nonresident aliens to claim a reduced withholding
Why You Should Review Form 1042 Before Filing Form 1042-S
When it comes to withholding and reporting payments to foreign persons, many filers focus on Form 1042-S—the statement issued to
1042-S Chapter 3 and 4 Status Codes
On Form 1042-S, the Chapter 3 Status Code (Box 12) and Chapter 4 Status Code (Box 13i) are used to
Form 1042-S vs. 1099: Correctly Classifying Payments to Foreign Contractors
When working with independent contractors, one of the most important tax compliance steps is ensuring that payments are reported on
How to Reconcile Form 1042 With Your 1042-S Filings
Reconciling Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) with your Form 1042-S filings is
Implications of IRS-ICE Data Sharing
The IRS-ICE data-sharing agreement, signed on April 7, 2025, marks a major change in U.S. tax and immigration policy. It
Casino Compliance: Managing W-2G and 1042-S Reporting for Gambling Winnings
Casinos in the U.S. have specific IRS reporting obligations when it comes to gambling winnings. The two primary forms involved
Cross-Border Payments Compliance: When to Issue Form 1042-S vs. Form 1099
Navigating U.S. tax reporting rules for cross-border payments can be tricky — especially when deciding whether to issue a Form
How Foreign Athletes and Entertainers Are Taxed Using IRS Form 1042-S
Foreign athletes and entertainers who earn income in the United States follow special tax withholding and reporting rules. Payers use
IRS Form 1042-S: Withholding Tax Credit for Foreign Persons
Nonresident aliens (NRAs) can claim a withholding tax credit on Form 1040-NR, U.S. Nonresident Alien Income Tax Return using the
Why would an Orchestra file Form 1042-S?
An orchestra must file Form 1042-S when it pays U.S.-source income to nonresident aliens. These can include performers, conductors, guest
What are the different income codes for various types of U.S.-source income?
In the context of Form 1042-S, which reports U.S.-source income paid to nonresident aliens, there are various income codes used
Does an international winner receive a W-2G or a 1042-S form?
When it comes to gambling winnings, the tax reporting requirements differ depending on whether the winner is a U.S. resident
Form 1042-S Gambling Winnings for Non-U.S. Residents
When a non-U.S. resident (nonresident alien) wins a gambling prize in the United States, specific tax rules apply. Winnings are
Chapter 3 vs Chapter 4 on Form 1042-S: Key IRS Withholding Differences
IntroductionIRS Form 1042-S is used to report certain U.S.-source income paid to foreign persons, along with any U.S. federal tax
Chapter 4 FATCA Explained: Preventing Tax Avoidance & Form 1042-S Reporting
The primary purpose of Chapter 4 (the Foreign Account Tax Compliance Act (FATCA)) was to address the issue of U.S.
Does everyone who files a 1042-S have to file a 1042 as well?
Yes. If you are required to file Form 1042-S, you generally must also file Form 1042. These forms work together
What is a qualified intermediary for a 1042-S form?
A qualified intermediary (QI) for a 1042-S form is an intermediary, usually a foreign financial institution, that has entered into
1042-S Scenario: Casino and Foreign Winner’s Gambling Winnings
When a foreign tourist wins money at a U.S. casino, the IRS requires reporting through Form 1042-S. Gambling winnings for
1042-S Scenario: Book Publisher and Foreign Author Royalties
When a U.S. publisher pays royalties to a foreign author, those payments count as U.S.-source income. The publisher must report
How can I get refund from the total withholding credit on Form 1042-S?
To get a refund from the total withholding credit on Form 1042-S, follow these steps: 1. Complete Your U.S. Tax
What is the difference between IRS Form 1042 and 1042-S?
Forms 1042 and 1042-S are both related to tax reporting for payments made to foreign persons, but they serve different
IRS Form 1042-S: What is a Withholding Agent?
A withholding agent is any person, business, or organization (U.S. or foreign) that is responsible for paying income to a
1042 / Foreign Reporting
IRS Form 1042-S: How Can Recipients Receive a Refund of Withheld Money?
It’s a common question: you received Copy B of IRS Form 1042-S in the mail or by email. The form
1042 / Foreign Reporting
FATCA and Foreign Bank Accounts: The Issue of Withholding and Reporting for Expatriates
The Foreign Account Tax Compliance Act (FATCA) adds another layer of complexity to the already challenging financial situations faced by
1042 / Foreign Reporting
Definition of a Withholding Agent Under Chapter 4 FATCA Reporting Requirements
The expansion of Form 1042-S has created a broad definition of who may be required to file. This expansion stems
1042 / Foreign Reporting
Understanding Withholding on Income of Foreign Persons
When you pay U.S. source income to foreign persons—such as nonresident aliens or foreign entities—the IRS requires withholding and reporting
1042 / Foreign Reporting
FATCA and Form 1042-S: Understanding Reporting Requirements for Foreign Payments
Foreign workers, students, and other non-resident aliens are subject to U.S. tax withholding when they work in the United States.
1042 / Foreign Reporting
Understanding FATCA: Foreign Account Tax Compliance Act Explained
The Foreign Account Tax Compliance Act (FATCA) was introduced in 2010 to prevent tax evasion by U.S. taxpayers holding money
1042 / Foreign Reporting
IRS Forms W-2 and 1042-S for International Students
International students are considered nonresident aliens for U.S. tax purposes. If you receive income while in the United States—such as
What is Form 1042-S and Who Needs to Submit One?
IRS Form 1042-S is an annual information return for any monetary amounts given to a non-resident alien by a United States based institution or business.