1042 Outsourcing (Tax Year 2025)
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Software
$599.95
- We make filing IRS Form 1042 simple, fast, and compliant with our outsourcing service.
- Secure electronic filing through the IRS MeF system.
- No TCC or IRS fingerprint registration required.
- Expert support and quick turnaround.
-
Tailor quotes for your filing needs.
- One-time cost, no hidden fees. Originals or amended filings.
- Includes PDF copy for your records.
IRS Form 1042IRS Form 1042 is an annual tax return that shows the weekly and monthly breakdown of U.S. source income withheld by a withholding agent. It must be filed through the IRS Modernized e-File (MeF) system. Guidance on preparing XML files for submission is provided in IRS Publications 4164 and 4165.
Form 1042 vs. Form 1042-S
Form 1042: Reports the total amount of tax withheld on U.S.-source income.
Form 1042-S: Reports how much was withheld for each payee in a specific tax year.
Form 1042-S is filed separately through the IRS FIRE System (see IRS Publication 1187).
Challenges with Filing Form 1042
Registering for access to the MeF system can:
Take several months to complete
Require fingerprinting and IRS approval of a transmitter
Be difficult for businesses with limited resources
How We Help
With 1099FIRE, we make Form 1042 filing fast and accurate:
Enter Your Data
Fill out information in our secure, fillable Form 1042 software.Review Your PDF
We’ll send you a PDF copy to review before submission.Validation
We create and validate the required XML files (manifest, SOAP, and submission) and check for errors.Electronic Filing
Once approved, we transmit your return electronically to the IRS and provide you with a receipt.Both original and amended filings can be submitted for current or prior years.
1099FIRE is an IRS-approved vendor for electronic Form 1042 filings. We successfully completed the IRS Assurance Testing System (ATS) requirements, certifying our software for secure and compliant MeF submissions.
Verified by the IRS as an approved e-file provider
Tested and approved for Form 1042 returns
Reliable and secure electronic filing
See the official IRS list of approved providers here: 1042 Modernized e-File (MeF) providers
Electronic filing of Form 1042 is required if you are:
A financial institution acting as a withholding agent
A partnership with more than 100 partners
A withholding agent filing 10 or more information returns in the calendar year
If you meet any of these conditions, Form 1042 must be filed electronically with the IRS.
Although both forms are filed by the withholding agent, they serve different purposes:
Form 1042-S
An information return provided to the foreign recipient.
Reports income subject to withholding (wages, scholarships, dividends, etc.).
Shows the amount of income paid, any withholding tax, and treaty benefits claimed.
Form 1042
An annual tax return filed with the IRS.
Reports the withholding agent’s total tax liability for the year.
Must be signed by an authorized taxpayer representative, who assumes responsibility for accuracy and completeness.
Form 1042 must be filed annually with the IRS by March 15 of the following calendar year.
It is submitted together with Form 1042-S, which reports income paid to foreign persons. These filings help the IRS track and enforce U.S. withholding tax rules for payments made to foreign individuals and entities.
