Does everyone who files a 1042-S have to file a 1042 as well?
adminadmin
- Form 1042, Form 1042-S
Yes. If you are required to file Form 1042-S, you generally must also file Form 1042. These forms work together to report U.S. withholding tax on payments to foreign persons.
How the Forms Work
-
Form 1042-S – Reports specific U.S.-source income paid to foreign persons that is subject to withholding. Each payment type, recipient, and withholding rate requires its own Form 1042-S.
-
Form 1042 – Serves as the annual summary and transmittal for all Form 1042-S filings. It shows total U.S.-source income paid, taxes withheld, and any deposits made.
Why Both Are Required
Form 1042 gives the IRS a complete yearly report of all U.S.-source income paid to foreign persons and the total taxes withheld. Form 1042-S, on the other hand, provides details for each specific payment and recipient.
If you file any Form 1042-S, the IRS also expects a Form 1042. This ensures that totals match between the detailed payment records and the annual summary.