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Navigating the complex waters of U.S. tax regulations can be daunting, especially when it comes to understanding the myriad forms required by the Internal Revenue Service (IRS). Among these is the IRS 1042-S form, a crucial document for foreign individuals and entities receiving U.S. source income that's subject to withholding. This form serves multiple purposes: it reports income, whether it's from dividends, interests, rents, royalties, or compensation for independent personal services, and the amount of tax withheld on that income. Not only does it play a pivotal role in ensuring compliance with tax laws, but it also aids in reconciling tax liabilities and refund claims for income that might be taxed in both the United States and the recipient's home country. Given its importance, understanding the 1042-S form is essential for anyone involved in international financial transactions with the U.S., aiming to simplify what can otherwise be a complex filing process.

Preview - IRS 1042-S Form

 

 

 

Foreign Person’s U.S. Source Income Subject to Withholding

2022

 

OMB No. 1545-0096

 

 

 

 

Department of the Treasury

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copy A for

Form 1042-S

 

▶ Go to www.irs.gov/Form1042S for instructions and the latest information.

 

 

 

 

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

UNIQUE FORM IDENTIFIER

AMENDED

 

 

AMENDMENT NO.

 

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Income

2 Gross income

 

3 Chapter indicator. Enter “3” or “4”

 

 

13e

Recipient’s U.S. TIN, if any

 

 

 

13f Ch. 3 status code

code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3a Exemption code

 

 

4a Exemption code

 

 

 

 

 

 

 

 

 

 

 

13g Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3b Tax rate

.

 

4b Tax rate

.

 

13h

Recipient’s GIIN

13i Recipient’s foreign tax identification

13j LOB code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

number, if any

 

 

 

 

5 Withholding allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7a Federal tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

13k

Recipient’s account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7b Check if federal tax withheld was not deposited with the IRS because

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

escrow procedures were applied (see instructions)

 

 

13l Recipient’s date of birth (YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7c Check if withholding occurred in subsequent year with respect to a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

partnership interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 Tax withheld by other agents

 

 

 

 

 

 

 

14a

Primary Withholding Agent’s Name (if applicable)

 

 

 

 

9Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)

(

)

 

14b Primary Withholding Agent’s EIN

15 Check if pro-rata basis reporting

 

 

 

 

 

10 Total withholding credit (combine boxes 7a, 8, and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15a Intermediary or flow-through entity’s EIN, if any 15b Ch. 3 status code 15c Ch. 4 status code

11Tax paid by withholding agent (amounts not withheld) (see instructions)

 

 

 

 

 

 

 

15d Intermediary or flow-through entity’s name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12a

Withholding agent’s EIN

 

12b Ch. 3 status code

12c Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15e

Intermediary or flow-through entity’s GIIN

 

 

 

 

 

 

 

 

 

 

 

 

12d Withholding agent’s name

15f Country code

15g Foreign tax identification number, if any

 

 

 

 

 

 

 

 

 

 

12e

Withholding agent’s Global Intermediary Identification Number (GIIN)

15h

Address (number and street)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12f

Country code

12g

Foreign tax identification number, if any

15i

City or town, state or province, country, ZIP or foreign postal code

 

 

 

 

 

 

 

 

 

 

 

12h

Address (number and street)

16a

Payer’s name

 

 

 

16b Payer’s TIN

 

 

 

 

 

 

 

 

 

12i City or town, state or province, country, ZIP or foreign postal code

16c

Payer’s GIIN

 

 

16d Ch. 3 status code

 

16e Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

13a

Recipient’s name

 

 

13b Recipient’s country code

17a

State income tax withheld

17b Payer’s state tax no.

17c Name of state

13c Address (number and street)

13d City or town, state or province, country, ZIP or foreign postal code

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Cat. No. 11386R

Form 1042-S (2022)

Form 1042-S

 

Foreign Person’s U.S. Source Income Subject to Withholding

2022

 

 

OMB No. 1545-0096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

▶ Go to www.irs.gov/Form1042S for instructions and the latest information.

 

 

 

Copy B

Department of the Treasury

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

UNIQUE FORM IDENTIFIER

AMENDED

 

 

AMENDMENT NO.

 

 

for Recipient

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Income

2 Gross income

 

3 Chapter indicator. Enter “3” or “4”

 

 

13e

Recipient’s U.S. TIN, if any

 

 

 

13f

Ch. 3 status code

code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3a Exemption code

 

 

4a Exemption code

 

 

 

 

 

 

 

 

 

 

 

 

13g Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3b Tax rate

.

 

4b Tax rate

.

 

13h

Recipient’s GIIN

 

13i Recipient’s foreign tax identification

13j LOB code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

number, if any

 

 

 

 

 

5 Withholding allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7a Federal tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

13k

Recipient’s account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7b Check if federal tax withheld was not deposited with the IRS because

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

escrow procedures were applied (see instructions)

 

 

13l Recipient’s date of birth (YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7c Check if withholding occurred in subsequent year with respect to a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

partnership interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 Tax withheld by other agents

 

 

 

 

 

 

 

14a

Primary Withholding Agent’s Name (if applicable)

9Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)

(

)

 

14b Primary Withholding Agent’s EIN

15 Check if pro-rata basis reporting

 

 

 

 

 

10 Total withholding credit (combine boxes 7a, 8, and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15a Intermediary or flow-through entity’s EIN, if any 15b Ch. 3 status code 15c Ch. 4 status code

11Tax paid by withholding agent (amounts not withheld) (see instructions)

 

 

 

 

 

 

 

15d Intermediary or flow-through entity’s name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12a

Withholding agent’s EIN

 

12b Ch. 3 status code

12c Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15e

Intermediary or flow-through entity’s GIIN

 

 

 

 

 

 

 

 

 

 

 

 

12d Withholding agent’s name

15f Country code

15g Foreign tax identification number, if any

 

 

 

 

 

 

 

 

 

 

12e

Withholding agent’s Global Intermediary Identification Number (GIIN)

15h

Address (number and street)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12f

Country code

12g

Foreign tax identification number, if any

15i

City or town, state or province, country, ZIP or foreign postal code

 

 

 

 

 

 

 

 

 

 

 

12h

Address (number and street)

16a

Payer’s name

 

 

 

16b Payer’s TIN

 

 

 

 

 

 

 

 

 

12i City or town, state or province, country, ZIP or foreign postal code

16c

Payer’s GIIN

 

 

16d Ch. 3 status code

 

16e Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

13a

Recipient’s name

 

 

13b Recipient’s country code

17a

State income tax withheld

17b Payer’s state tax no.

17c Name of state

13c Address (number and street)

13d City or town, state or province, country, ZIP or foreign postal code

(keep for your records)

Form 1042-S (2022)

U.S. Income Tax Filing Requirements

Generally, every nonresident alien individual, nonresident alien fiduciary, and foreign corporation with U.S. income, including income that is effectively connected with the conduct of a trade or business in the United States, must file a U.S. income tax return. However, no return is required to be filed by a nonresident alien individual, nonresident alien fiduciary, or foreign corporation if such person was not engaged in a trade or business in the United States at any time during the tax year and if the tax liability of such person was fully satisfied by the withholding of U.S. tax at the source. Corporations file Form 1120-F; all others file Form 1040-NR. You may get the return forms and instructions at IRS.gov, at any U.S. Embassy or consulate, or by writing to: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.

En règle générale, tout étranger non-résident, tout organisme fidéicommissaire étranger non-résident et toute société étrangère percevant un revenu aux Etats-Unis, y compris tout revenu dérivé, en fait, du fonctionnement d’un commerce ou d’une affaire aux Etats- Unis, doit produire une déclaration d’impôt sur le revenu auprès des services fiscaux des Etats-Unis. Cependant aucune déclaration d’impôt sur le revenu n’est exigée d’un étranger non-résident, d’un organisme fidéicommissaire étranger non-résident, ou d’une société étrangère s’ils n’ont pris part à aucun commerce ou affaire aux Etats- Unis à aucun moment pendant l’année fiscale et si les impôts dont ils sont redevables, ont été entièrement acquittés par une retenue à la source sur leur salaire. Les sociétés doivent faire leur déclaration d’impôt en remplissant le formulaire 1120-F; tous les autres redevables doivent remplir le formulaire 1040-NR. On peut se procurer les formulaires de déclarations d’impôts et les instructions y afférentes

àIRS.gov et dans toutes les ambassades et tous les consulats des Etats-Unis. L’on peut également s’adresser pour tout renseignement à: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.

Explanation of Codes

Box 1. Income Code.

Code

Types of Income

01Interest paid by U.S. obligors—general

02Interest paid on real property mortgages

03Interest paid to controlling foreign corporations

04Interest paid by foreign corporations

05Interest on tax-free covenant bonds

 

22

Interest paid on deposit with a foreign branch of a domestic

Interest

30

corporation or partnership

Original issue discount (OID)

 

29

Deposit interest

 

31

Short-term OID

 

33

Substitute payment—interest

 

51

Interest paid on certain actively traded or publicly offered

 

 

securities1

 

54

Substitute payments—interest from certain actively traded

 

 

or publicly offered securities1

Dividend

06

Dividends paid by U.S. corporations—general

07

Dividends qualifying for direct dividend rate

 

 

08

Dividends paid by foreign corporations

Por regla general, todo extranjero no residente, todo organismo fideicomisario extranjero no residente y toda sociedad anónima extranjera que reciba ingresos en los Estados Unidos, incluyendo ingresos relacionados con la conducción de un negocio o comercio dentro de los Estados Unidos, deberá presentar una declaración estadounidense de impuestos sobre el ingreso. Sin embargo, no se requiere declaración alguna a un individuo extranjero, una sociedad anónima extranjera u organismo fideicomisario extranjero no residente, si tal persona no ha efectuado comercio o negocio en los Estados Unidos durante el año fiscal y si la responsabilidad con los impuestos de tal persona ha sido satisfecha plenamente mediante retención del impuesto de los Estados Unidos en la fuente. Las sociedades anónimas envían el Formulario 1120-F; todos los demás contribuyentes envían el Formulario 1040-NR. Se podrá obtener formularios e instrucciones en IRS.gov y en cualquier Embajada o Consulado de los Estados Unidos o escribiendo directamente a: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.

Im allgemeinen muss jede ausländische Einzelperson, jeder ausländische Bevollmächtigte und jede ausländische Gesellschaft mit Einkommen in den Vereinigten Staaten, einschliesslich des Einkommens, welches direkt mit der Ausübung von Handel oder Gewerbe innerhalb der Staaten verbunden ist, eine Einkommensteuererklärung der Vereinigten Staaten abgeben. Eine Erklärung, muss jedoch nicht von Ausländern, ausländischen Bevollmächtigten oder ausländischen Gesellschaften in den Vereinigten Staaten eingereicht werden, falls eine solche Person während des Steuerjahres kein Gewerbe oder Handel in den Vereinigten Staaten ausgeübt hat und die Steuerschuld durch Einbehaltung der Steuern der Vereinigten Staaten durch die Einkommensquelle abgegolten ist. Gesellschaften reichen den Vordruck 1120-F ein; alle anderen reichen das Formblatt 1040-NR ein. Einkommensteuererklärungen und Instruktionen können unter IRS.gov und bei den Botschaften und Konsulaten der Vereinigten Staaten eingeholt werden. Um weitere Informationen wende man sich bitte an: Internal Revenue Service, 1201 N. Mitsubishi Motorway, Bloomington, IL 61705-6613.

 

34

Substitute payment—dividends

 

40

Other dividend equivalents under IRC section 871(m)

Dividend

52

Dividends paid on certain actively traded or publicly offered

 

securities1

 

 

 

53

Substitute payments-dividends from certain actively traded or

 

 

publicly offered securities1

 

56

Dividend equivalents under IRC section 871(m) as a result of

 

 

applying the combined transaction rules

 

 

 

 

09

Capital gains

 

10

Industrial royalties

 

11

Motion picture or television copyright royalties

 

12

Other royalties (for example, copyright, software,

 

 

broadcasting, endorsement payments)

Other

13

Royalties paid on certain publicly offered securities1

14

Real property income and natural resources royalties

 

15

Pensions, annuities, alimony, and/or insurance premiums

 

16

Scholarship or fellowship grants

 

17

Compensation for independent personal services2

 

18

Compensation for dependent personal services2

 

19

Compensation for teaching2

See back of Copy C for additional codes

1This code should only be used if the income paid is described in Regulations section 1.1441-6(c)(2) and the withholding agent has reduced the rate of withholding under an income tax treaty without the recipient providing a U.S. or foreign TIN.

2If compensation that otherwise would be covered under Income Codes 17 through 20 is directly attributable to the recipient’s occupation as an artist or athlete, use Income Code 42 or 43 instead.

Form 1042-S

 

 

Foreign Person’s U.S. Source Income Subject to Withholding

2022

 

 

OMB No. 1545-0096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury

 

 

▶ Go to www.irs.gov/Form1042S for instructions and the latest information.

 

 

Copy C for Recipient

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

 

UNIQUE FORM IDENTIFIER

 

 

AMENDED

 

 

AMENDMENT NO.

 

Attach to any Federal tax return you file

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Income

2 Gross income

 

 

3 Chapter indicator. Enter “3” or “4”

 

 

13e

Recipient’s U.S. TIN, if any

 

 

 

13f

Ch. 3 status code

code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3a Exemption code

 

 

4a Exemption code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13g Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3b Tax rate

.

 

4b Tax rate

.

 

13h

Recipient’s GIIN

 

13i Recipient’s foreign tax identification

13j LOB code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

number, if any

 

 

 

 

 

5 Withholding allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7a Federal tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

13k

Recipient’s account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7b Check if federal tax withheld was not deposited with the IRS because

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

escrow procedures were applied (see instructions)

 

 

13l Recipient’s date of birth (YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7c Check if withholding occurred in subsequent year with respect to a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

partnership interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 Tax withheld by other agents

 

 

 

 

 

 

 

14a

Primary Withholding Agent’s Name (if applicable)

9Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)

(

)

 

14b Primary Withholding Agent’s EIN

15 Check if pro-rata basis reporting

 

 

 

 

 

10 Total withholding credit (combine boxes 7a, 8, and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15a Intermediary or flow-through entity’s EIN, if any 15b Ch. 3 status code 15c Ch. 4 status code

11Tax paid by withholding agent (amounts not withheld) (see instructions)

 

 

 

 

 

 

 

15d Intermediary or flow-through entity’s name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12a

Withholding agent’s EIN

 

12b Ch. 3 status code

12c Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15e

Intermediary or flow-through entity’s GIIN

 

 

 

 

 

 

 

 

 

 

 

 

12d Withholding agent’s name

15f Country code

15g Foreign tax identification number, if any

 

 

 

 

 

 

 

 

 

 

12e

Withholding agent’s Global Intermediary Identification Number (GIIN)

15h

Address (number and street)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12f

Country code

12g

Foreign tax identification number, if any

15i

City or town, state or province, country, ZIP or foreign postal code

 

 

 

 

 

 

 

 

 

 

 

12h

Address (number and street)

16a

Payer’s name

 

 

 

16b Payer’s TIN

 

 

 

 

 

 

 

 

 

12i City or town, state or province, country, ZIP or foreign postal code

16c

Payer’s GIIN

 

 

16d Ch. 3 status code

 

16e Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

13a

Recipient’s name

 

 

13b Recipient’s country code

17a

State income tax withheld

17b Payer’s state tax no.

17c Name of state

13c Address (number and street)

13d City or town, state or province, country, ZIP or foreign postal code

Form 1042-S (2022)

Explanation of Codes (continued)

 

20

Compensation during studying and training2

 

23

Other income

 

24

Qualified investment entity (QIE) distributions of capital

 

 

gains

 

25

Trust distributions subject to IRC section 1445

 

26

Unsevered growing crops and timber distributions by a trust

 

 

subject to IRC section 1445

 

27

Publicly traded partnership distributions subject to IRC

 

 

section 1446

 

28

Gambling winnings3

 

32

Notional principal contract income4

Other

35

Substitute payment—other

36

Capital gains distributions

 

 

37

Return of capital

 

38

Eligible deferred compensation items subject to IRC section

 

 

877A(d)(1)

 

39

Distributions from a nongrantor trust subject to IRC section

 

 

877A(f)(1)

41Guarantee of indebtedness

42Earnings as an artist or athlete—no central withholding agreement5

43Earnings as an artist or athlete—central withholding agreement5

44Specified federal procurement payments

50Income previously reported under escrow procedure6

55Taxable death benefits on life insurance contracts

57Amount realized under IRC section 1446(f)

Boxes 3a and 4a. Exemption Code (applies if the tax rate entered in box 3b or 4b is 00.00).

CodeAuthority for Exemption Chapter 3

01Effectively connected income

02Exempt under IRC7

03Income is not from U.S. sources

04Exempt under tax treaty

05Portfolio interest exempt under IRC

06QI that assumes primary withholding responsibility

07WFP or WFT

08U.S. branch treated as U.S. Person

09Territory FI treated as U.S. Person

10QI represents that income is exempt

11QSL that assumes primary withholding responsibility

12Payee subjected to chapter 4 withholding

22QDD that assumes primary withholding responsibility

23Exempt under section 897(l)

24Exempt under section 892

Chapter 4

13Grandfathered payment

14Effectively connected income

15Payee not subject to chapter 4 withholding

16Excluded nonfinancial payment

17Foreign Entity that assumes primary withholding responsibility

18U.S. Payees—of participating FFI or registered deemed- compliant FFI

19Exempt from withholding under IGA8

20Dormant account9

21Other—payment not subject to chapter 4 withholding

Boxes 12b, 12c, 13f, 13g, 15b, 15c, 16d, and 16e. Withholding Agent, Recipient, Intermediary, and Payer Chapter 3 and Chapter 4 Status Codes.

Type of Recipient, Withholding Agent, Payer, or Intermediary Code

Chapter 3 Status Codes

03Territory FI—treated as U.S. Person

04Territory FI—not treated as U.S. Person

05U.S. branch—treated as U.S. Person

06U.S. branch—not treated as U.S. Person

07U.S. branch—ECI presumption applied

08Partnership other than Withholding Foreign Partnership or Publicly Traded Partnership

09Withholding Foreign Partnership

See back of Copy D for additional codes

2If compensation that otherwise would be covered under Income Codes 17 through 20 is directly attributable to the recipient’s occupation as an artist or athlete, use Income Code 42 or 43 instead.

3Subject to 30% withholding rate unless the recipient is from one of the treaty countries listed under Gambling winnings (Income Code 28) in Pub. 515.

4Use appropriate Interest Income Code for embedded interest in a notional principal contract.

5Income Code 43 should only be used if Letter 4492, Venue Notification, has been issued by the Internal Revenue Service (otherwise, use Income Code 42 for earnings as an artist or athlete). If Income Code 42 or 43 is used, Recipient Code 22 (artist or athlete) should be used instead of Recipient Code 16 (individual), 15 (corporation), or 08 (partnership other than withholding foreign partnership).

6Use only to report gross income the tax for which is being deposited in the current year because such tax was previously escrowed for chapters 3 and 4 and the withholding agent previously reported the gross income in a prior year and checked the box to report the tax as not deposited under the escrow procedure. See the instructions to this form for further explanation.

7This code should only be used if no other specific chapter 3 exemption code applies.

8Use only to report a U.S. reportable account or nonconsenting U.S. account that is receiving a payment subject to chapter 3 withholding.

9Use only if applying the escrow procedure for dormant accounts under Regulations section 1.1471-4(b)(6). If tax was withheld and deposited under chapter 3, do not check box 7b (“tax not deposited with IRS pursuant to escrow procedure”). You must instead enter “3” in box 3 and complete box 3b.

Form 1042-S

 

 

Foreign Person’s U.S. Source Income Subject to Withholding

2022

 

 

OMB No. 1545-0096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Department of the Treasury

 

 

▶ Go to www.irs.gov/Form1042S for instructions and the latest information.

 

 

Copy D for Recipient

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

 

UNIQUE FORM IDENTIFIER

 

 

AMENDED

 

 

AMENDMENT NO.

 

 

Attach to any state tax return you file

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Income

2 Gross income

 

 

3 Chapter indicator. Enter “3” or “4”

 

 

13e

Recipient’s U.S. TIN, if any

 

 

 

13f

Ch. 3 status code

code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3a Exemption code

 

 

4a Exemption code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13g Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3b Tax rate

.

 

4b Tax rate

.

 

13h

Recipient’s GIIN

 

13i Recipient’s foreign tax identification

13j LOB code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

number, if any

 

 

 

 

 

5 Withholding allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7a Federal tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

13k

Recipient’s account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7b Check if federal tax withheld was not deposited with the IRS because

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

escrow procedures were applied (see instructions)

 

 

13l Recipient’s date of birth (YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7c Check if withholding occurred in subsequent year with respect to a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

partnership interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 Tax withheld by other agents

 

 

 

 

 

 

 

14a

Primary Withholding Agent’s Name (if applicable)

9Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)

(

)

 

14b Primary Withholding Agent’s EIN

15 Check if pro-rata basis reporting

 

 

 

 

 

10 Total withholding credit (combine boxes 7a, 8, and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15a Intermediary or flow-through entity’s EIN, if any 15b Ch. 3 status code 15c Ch. 4 status code

11Tax paid by withholding agent (amounts not withheld) (see instructions)

 

 

 

 

 

 

 

15d Intermediary or flow-through entity’s name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12a

Withholding agent’s EIN

 

12b Ch. 3 status code

12c Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15e

Intermediary or flow-through entity’s GIIN

 

 

 

 

 

 

 

 

 

 

 

 

12d Withholding agent’s name

15f Country code

15g Foreign tax identification number, if any

 

 

 

 

 

 

 

 

 

 

12e

Withholding agent’s Global Intermediary Identification Number (GIIN)

15h

Address (number and street)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12f

Country code

12g

Foreign tax identification number, if any

15i

City or town, state or province, country, ZIP or foreign postal code

 

 

 

 

 

 

 

 

 

 

 

12h

Address (number and street)

16a

Payer’s name

 

 

 

16b Payer’s TIN

 

 

 

 

 

 

 

 

 

12i City or town, state or province, country, ZIP or foreign postal code

16c

Payer’s GIIN

 

 

16d Ch. 3 status code

 

16e Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

13a

Recipient’s name

 

 

13b Recipient’s country code

17a

State income tax withheld

17b Payer’s state tax no.

17c Name of state

13c Address (number and street)

13d City or town, state or province, country, ZIP or foreign postal code

Form 1042-S (2022)

Explanation of Codes (continued)

10Trust other than Withholding Foreign Trust

11Withholding Foreign Trust

12Qualified Intermediary

13Qualified Securities Lender—Qualified Intermediary

14Qualified Securities Lender—Other

15Corporation

16Individual

17Estate

18Private Foundation

19International Organization

20Tax Exempt Organization (Section 501(c) entities)

21Unknown Recipient

22Artist or Athlete

23Pension

24Foreign Central Bank of Issue

25Nonqualified Intermediary

26Hybrid entity making Treaty Claim

35Qualified Derivatives Dealer

36Foreign Government—Integral Part

37Foreign Government—Controlled Entity

38Publicly Traded Partnership

Pooled Reporting Codes10

27Withholding Rate Pool—General

28Withholding Rate Pool—Exempt Organization

29PAI Withholding Rate Pool—General

30PAI Withholding Rate Pool—Exempt Organization

31Agency Withholding Rate Pool—General

32Agency Withholding Rate Pool—Exempt Organization

Chapter 4 Status Codes

01U.S. Withholding Agent—FI

02U.S. Withholding Agent—Other

03Territory FI—not treated as U.S. Person

04Territory FI—treated as U.S. Person

05Participating FFI—Other

06Participating FFI—Reporting Model 2 FFI

07Registered Deemed-Compliant FFI—Reporting Model 1 FFI

08Registered Deemed-Compliant FFI—Sponsored Entity

09Registered Deemed-Compliant FFI—Other

10Certified Deemed-Compliant FFI—Other

11Certified Deemed-Compliant FFI—FFI with Low Value Accounts

12Certified Deemed-Compliant FFI—Nonregistering Local Bank

13Certified Deemed-Compliant FFI—Sponsored Entity

14Certified Deemed-Compliant FFI—Investment Entity that does not maintain financial accounts

15Nonparticipating FFI

16Owner-Documented FFI

17U.S. Branch—treated as U.S. person

18U.S. Branch—not treated as U.S. person (reporting under section 1471)

19Passive NFFE identifying Substantial U.S. Owners

20Passive NFFE with no Substantial U.S. Owners

21Publicly Traded NFFE or Affiliate of Publicly Traded NFFE

22Active NFFE

23Individual

24Section 501(c) Entities

25Excepted Territory NFFE

26Excepted NFFE—Other

27Exempt Beneficial Owner

28Entity Wholly Owned by Exempt Beneficial Owners

29Unknown Recipient

30Recalcitrant Account Holder

31Nonreporting IGA FFI

32Direct reporting NFFE

33U.S. reportable account

34Nonconsenting U.S. account

35Sponsored direct reporting NFFE

36Excepted Inter-affiliate FFI

37Undocumented Preexisting Obligation

38U.S. Branch—ECI presumption applied

39Account Holder of Excluded Financial Account11

40Passive NFFE reported by FFI12

41NFFE subject to 1472 withholding

50U.S. Withholding Agent—Foreign branch of FI

Pooled Reporting Codes

42Recalcitrant Pool—No U.S. Indicia

43Recalcitrant Pool—U.S. Indicia

44Recalcitrant Pool—Dormant Account

45Recalcitrant Pool—U.S. Persons

46Recalcitrant Pool—Passive NFFEs

47Nonparticipating FFI Pool

48U.S. Payees Pool

49QI-Recalcitrant Pool—GeneraI13

Box 13j. LOB Code (enter the code that best describes the applicable limitation on benefits (LOB) category that qualifies the taxpayer for the requested treaty benefits).

LOB Code

LOB Treaty Category

02Government – contracting state/political subdivision/local authority

03Tax exempt pension trust/Pension fund

04Tax exempt/Charitable organization

05Publicly traded corporation

06Subsidiary of publicly traded corporation

07Company that meets the ownership and base erosion test

08Company that meets the derivative benefits test

09Company with an item of income that meets the active trade or business test

10Discretionary determination

11Other

12No LOB article in treaty

10Codes 27 through 32 should only be used by a QI, QSL, WP, or WT. A QI acting as a QDD may use only code 27 or 28.

11This code should only be used if income is paid to an account that is excluded from the definition of financial account under Regulations section 1.1471-5(b)(2) or under Annex II of the applicable Model 1 IGA or Model 2 IGA.

12This code should only be used when the withholding agent has received a certification on the FFI withholding statement of a participating FFI or registered deemed- compliant FFI that maintains the account that the FFI has reported the account held by the passive NFFE as a U.S. account (or U.S. reportable account) under its FATCA requirements. The withholding agent must report the name and GIIN of such FFI in boxes 15d and 15e.

13This code should only be used by a withholding agent that is reporting a payment (or portion of a payment) made to a QI with respect to the QI’s recalcitrant account holders.

Form 1042-S

 

Foreign Person’s U.S. Source Income Subject to Withholding

2022

 

 

OMB No. 1545-0096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

▶ Go to www.irs.gov/Form1042S for instructions and the latest information.

 

 

 

Copy E

Department of the Treasury

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internal Revenue Service

 

 

 

 

 

 

 

 

 

 

 

UNIQUE FORM IDENTIFIER

 

AMENDED

 

 

AMENDMENT NO.

 

 

for Withholding Agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Income

2 Gross income

 

3 Chapter indicator. Enter “3” or “4”

 

 

13e Recipient’s U.S. TIN, if any

 

 

 

13f

Ch. 3 status code

code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3a Exemption code

 

 

4a Exemption code

 

 

 

 

 

 

 

 

 

 

 

 

 

13g Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3b Tax rate

.

 

4b Tax rate

.

 

13h Recipient’s GIIN

 

13i Recipient’s foreign tax identification

13j LOB code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

number, if any

 

 

 

 

 

 

5 Withholding allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6 Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7a Federal tax withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

13k Recipient’s account number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7b Check if federal tax withheld was not deposited with the IRS because

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

escrow procedures were applied (see instructions)

 

 

13l Recipient’s date of birth (YYYYMMDD)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7c Check if withholding occurred in subsequent year with respect to a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

partnership interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8 Tax withheld by other agents

 

 

 

 

 

 

 

14a Primary Withholding Agent’s Name (if applicable)

9Overwithheld tax repaid to recipient pursuant to adjustment procedures (see instructions)

(

)

 

14b Primary Withholding Agent’s EIN

15 Check if pro-rata basis reporting

 

 

 

 

 

10 Total withholding credit (combine boxes 7a, 8, and 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15a Intermediary or flow-through entity’s EIN, if any 15b Ch. 3 status code 15c Ch. 4 status code

11Tax paid by withholding agent (amounts not withheld) (see instructions)

 

 

 

 

 

 

 

15d Intermediary or flow-through entity’s name

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12a

Withholding agent’s EIN

 

12b Ch. 3 status code

12c Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15e

Intermediary or flow-through entity’s GIIN

 

 

 

 

 

 

 

 

 

 

 

 

12d Withholding agent’s name

15f Country code

15g Foreign tax identification number, if any

 

 

 

 

 

 

 

 

 

 

12e

Withholding agent’s Global Intermediary Identification Number (GIIN)

15h

Address (number and street)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12f

Country code

12g

Foreign tax identification number, if any

15i

City or town, state or province, country, ZIP or foreign postal code

 

 

 

 

 

 

 

 

 

 

 

12h

Address (number and street)

16a

Payer’s name

 

 

 

16b Payer’s TIN

 

 

 

 

 

 

 

 

 

12i City or town, state or province, country, ZIP or foreign postal code

16c

Payer’s GIIN

 

 

16d Ch. 3 status code

 

16e Ch. 4 status code

 

 

 

 

 

 

 

 

 

 

 

13a

Recipient’s name

 

 

13b Recipient’s country code

17a

State income tax withheld

17b Payer’s state tax no.

17c Name of state

13c Address (number and street)

13d City or town, state or province, country, ZIP or foreign postal code

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Form 1042-S (2022)
Download IRS 1042-S PDF Form

Form Data

Fact Name Description
Purpose of Form 1042-S This form is used to report income paid to a foreign person that is subject to income tax withholding by the U.S.
Income Types Reported Form 1042-S reports types of income like dividends, royalties, scholarships, and other types of compensation.
Recipients It is issued to non-resident aliens, foreign businesses, and other foreign entities that receive certain types of income from U.S. sources.
Filing Deadline The form must be filed with the IRS by March 15 following the calendar year in which the income was paid.
Electronic Filing Entities that are required to file 250 or more forms must file them electronically.
Withholding Rates The withholding rates may vary depending on the type of income, the tax treaty between the U.S. and the recipient's country, and the recipient's U.S. tax status.
Requirement for Social Security Number (SSN) or ITIN Recipients of income reported on Form 1042-S may need to provide a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) if they are claiming a reduced rate of withholding under a tax treaty.
Amendments If errors are discovered after filing, an amended Form 1042-S must be submitted to correct the information.
State-specific Forms The 1042-S is a federal form, and its requirements do not change from state to state; however, recipients should be aware of any state-specific tax obligations that may apply to their situation.

Instructions on Utilizing IRS 1042-S

After submitting the IRS 1042-S form, a few important steps follow. The completion of this form is essential for reporting amounts paid to non-U.S. persons, including income such as salaries, dividends, or scholarships. This process ensures compliance with U.S. tax laws for payments made to foreign entities and individuals. Once completed and submitted, it's crucial to keep a copy for your records, monitor for any correspondence from the IRS in case they have questions or require additional information, and prepare for any potential tax obligations this reporting may highlight. The steps outlined below will guide you through the process of filling out the form accurately.

  1. Identify the recipient of the income. Determine if the recipient is an individual, a corporation, or another entity. This will affect how you proceed with the form.
  2. Locate the appropriate IRS 1042-S form for the tax year you are reporting. Make sure to use the most current version, as rules and form layouts can change.
  3. Gather all necessary information, including the recipient’s taxpayer identification number (TIN), country of residence, the total amount of income paid during the year, and any tax withheld.
  4. Begin by filling out the recipient's details in the sections provided. This includes their name, address, country of citizenship, and TIN.
  5. Enter the specifics of the income paid to the recipient in the next section. This part of the form requires you to classify the type of income and report the total amount paid.
  6. If tax was withheld from the payments, detail these amounts in the withholding tax section. Be precise, as this information is crucial for accurate tax reporting.
  7. Review the form thoroughly. Ensure all information is accurately reported and that no sections have been missed. Errors or omissions can lead to delays or questions from the IRS.
  8. Sign and date the form. This verifies that the information provided is accurate and truthful to the best of your knowledge.
  9. File the form with the IRS by the required deadline. Deadlines can vary, so it’s important to verify the specific due date for the tax year you are reporting.
  10. Keep a copy of the form for your records. It’s important to have a record of what was submitted for future reference or in case the IRS requests additional information.

Completing the IRS 1042-S form is a crucial step in ensuring tax compliance for payments made to non-U.S. individuals and entities. By following the steps outlined above, you can fill out the form correctly and efficiently, helping to avoid potential complications down the line. Remember, staying informed about tax obligations and maintaining accurate records is key to navigating the complexities of tax reporting for international transactions.

Obtain Answers on IRS 1042-S

If you've stumbled upon a need to understand or fill out a 1042-S form, you're likely dealing with specific types of payments from the U.S. to foreign persons. Here's a more digestible breakdown to navigate this form:

  1. What exactly is a 1042-S form?

    The 1042-S form is used by the IRS to report amounts paid to foreign persons by a U.S. based institution or business. This includes incomes such as dividends, royalties, scholarships, and other types of income paid to non-resident aliens or foreign entities. Essentially, it's a way for the U.S. government to keep track of taxable income going to non-U.S. individuals or entities.

  2. Who needs to file the 1042-S form?

    This form should be filed by the American institution or business that made the payment to the foreign individual or entity. If you're a non-resident alien receiving any of the income types described above from a U.S. source, expect to receive a 1042-S form reporting those payments.

  3. Is there a difference between a 1042-S and a W-2 or 1099 form?

    Yes, there's a significant difference. While the W-2 and 1099 forms are used to report income for U.S. citizens and resident aliens, the 1042-S form is exclusively for reporting income paid to non-resident aliens and foreign entities. These forms have different purposes and are processed differently by the IRS.

  4. What types of income are reported on the 1042-S form?
    • Dividends and interest from U.S. sources
    • Royalties
    • Compensation for services performed in the U.S.
    • Scholarships and fellowship grants
    • Other types of income that qualify under the IRS rules for non-resident aliens or foreign entities
  5. Can the information on a 1042-S form affect tax returns?

    Absolutely. For non-resident aliens and foreign entities, the information reported on the 1042-S can significantly impact how they file their U.S. tax returns and calculate their tax obligations. It's used to claim benefits under tax treaties or to report income for which taxes were already withheld.

  6. What if I don't receive a 1042-S form but should have?

    If you're expecting a 1042-S form and haven't received it, it's wise to contact the payer or institution that should've issued it. There are deadlines for issuing these forms, typically by March 15th following the year in which the income was paid. Acting swiftly can prevent filing delays or complications with the IRS.

  7. How does the 1042-S form interact with tax treaties?

    Many foreign persons and entities are subject to reduced rates of taxation or exemptions based on tax treaties between their country and the U.S. The 1042-S form is instrumental in applying these treaty benefits correctly, reporting income, and documenting that the proper amount of tax was withheld in accordance with the treaty.

  8. Where can I find more information or get help with the 1042-S form?

    For more detailed guidance or assistance, visiting the IRS website is a great starting point. It offers comprehensive information, instructions, and resources regarding the 1042-S form. Additionally, consulting with a tax professional skilled in international tax matters can prove invaluable, especially for those unfamiliar with the complexities of U.S. tax law as it applies to foreign nationals and entities.

Navigating the intricacies of international tax obligations can be challenging, but understanding the essentials of the 1042-S form is a good step forward. Whether you're a payer or a recipient, staying informed and seeking professional advice when necessary can help ensure compliance with U.S. tax laws and potentially avoid penalties.

Common mistakes

Filing taxes can often feel like navigating a labyrinth, especially when it comes to forms like the IRS 1042-S. This form is used for reporting amounts paid to foreign persons, including employees, independent contractors, and others. While the task may seem daunting at first, understanding the common missteps can make the process smoother and help ensure accuracy. Here are five mistakes commonly made when filling out the IRS 1042-S form:

  1. Incorrect or Missing Taxpayer Identification Numbers (TINs): One of the most critical yet frequently overlooked details is the taxpayer identification number. This number is essential for the IRS to process the form correctly. When it's incorrect or missing, it can lead to processing delays or even penalties. It's important to double-check this information for accuracy before submitting the form.

  2. Errors in the Tax Rate or Exemption Code: For entries related to withholdings, it's common to see mistakes in the tax rate or exemption code used. This part of the form directly affects the calculated tax obligation, so inaccuracies can lead to either overpayment or underpayment of taxes. Understanding the criteria for different tax rates and exemption codes is crucial.

  3. Failing to Properly Report the Type of Income: The IRS 1042-S form is used to report various types of income, from salaries and wages to scholarships and fellowships. Incorrectly categorizing the income can be a significant error. Paying careful attention to income types ensures that the form is filled out correctly and complies with IRS requirements.

  4. Not Including All Necessary Information: Completeness is key when filling out any tax form. The IRS 1042-S form requires detailed information, including the recipient's full name, country of citizenship, and whether the benefits of a tax treaty are being claimed. Leaving out any required data may result in the rejection of the form or unnecessary delays in processing.

  5. Misunderstanding Who Needs to File: One fundamental mistake is not recognizing whether you're actually required to file the form. The IRS 1042-S is specifically for reporting payments to foreign persons. Domestic transactions do not require this form. Ensuring that you need to file before starting is essential, as filling out unnecessary forms wastes time and resources.

To avoid these common errors:

  • Always verify the accuracy of all identification numbers and personal information.
  • Ensure you understand the specific tax rates and exemption codes that apply to the type of income you're reporting.
  • Review the IRS instructions for the 1042-S form closely to make sure every necessary piece of information is included and correctly listed.
  • Ask for help if you're unsure. Consulting a tax professional or using IRS resources can prevent many of these common mistakes.

Remember, investing the time to accurately complete the IRS 1042-S form can save you from potential headaches down the line. Accuracy, completeness, and understanding the form's requirements are your best tools for smooth sailing through tax season.

Documents used along the form

The IRS Form 1042-S is a crucial document for reporting amounts paid to foreign persons, including nonresident aliens, foreign corporations, and foreign partnerships, among others. This form plays an essential role within a suite of documents often utilized by entities and individuals when dealing with international payments and tax withholdings from the U.S. income. To ensure compliance with the IRS, understanding and preparing several other associated forms and documents is often necessary. Here are eight significant forms and documents frequently used alongside the IRS Form 1042-S:

  • Form W-8BEN: Utilized by foreign individuals to certify their foreign status and claim any tax treaty benefits for reduced rates or exemptions from withholding on income.
  • Form W-8BEN-E: Similar to Form W-8BEN but designed for entities. It helps foreign entities certify their status and claim benefits under a tax treaty.
  • Form 1042: Accompanies Form 1042-S as the annual withholding tax return for U.S. source income of foreign persons. It summarizes the total tax withheld under chapters 3 and 4 of the IRS code.
  • Form 8804: Used primarily for partnerships that withhold tax on income effectively connected with the conduct of a trade or business within the United States and allocated to its foreign partners.
  • Form 8805: Provided by partnerships to foreign partners to report their share of effectively connected income and the total tax withheld.
  • Form W-8ECI: Certifies that the foreign person's income is effectively connected with the conduct of a trade or business within the United States, thereby subjecting it to different withholding regulations.
  • Form 8233: Used by nonresident aliens who are claiming a tax treaty exemption from U.S. income tax on income for personal services performed in the United States.
  • Form SS-4: Required for obtaining an Employer Identification Number (EIN), which is needed for foreign entities to report and pay withholding taxes to the IRS.

These forms collectively play a vital role in the compliance and reporting ecosystem for payments made to foreign entities and individuals. Whether you're a tax professional, a business making international payments, or a nonresident alien receiving income from U.S. sources, familiarizing yourself with these documents is crucial for proper IRS compliance and minimizing potential tax liabilities.

Similar forms

  • W-2 Form:

    This document reports an employee's annual wages and the amount of taxes withheld from their paycheck. Similar to the 1042-S, it provides tax information necessary for filing returns. However, the W-2 is for U.S. residents, while the 1042-S is for non-resident aliens receiving U.S. sourced income.

  • 1099-INT Form:

    Used to report interest income from banks or financial institutions. Like the 1042-S, the 1099-INT form is critical for individuals to accurately report their annual income and determine tax liabilities, though it's typically for U.S. citizens and residents.

  • 1099-DIV Form:

    This document reports dividends and other distributions to taxpayers by investment fund companies. It shares a function with the 1042-S by reporting income that may not constitute wages or salary, but investment income, highlighting its role in the tax reporting process.

  • 1099-MISC Form:

    It reports payments made to individuals that are not salary, such as rent, prizes, awards, and other fixed determinable income. Similar to the 1042-S, the 1099-MISC is integral for tracking income that doesn't come from traditional employment or investment dividends.

  • 1099-B Form:

    This form reports the sale and exchange of securities. Like the 1042-S, it's geared towards tracking types of income outside of wages or salary, specifically from transactions in the financial markets.

  • W-8BEN Form:

    Used by foreign individuals to report their status and claim any treaty benefits, including exemptions from withholding on income. This form is closely related to the 1042-S, as it helps determine the rate of withholding on income that is not effectively connected to a U.S. trade or business.

  • W-8ECI Form:

    Individuals use this form to certify that their income is "effectively connected" with the conduct of a trade or business within the U.S. It complements the 1042-S by providing a way to claim income that is not subject to withholding because it is connected to U.S. operations.

  • W-9 Form:

    Request for Taxpayer Identification Number and Certification, used by U.S. persons. Businesses use this form to collect information from contractors to accurately report earnings to the IRS. Like the 1042-S, the W-9 is vital for tax reporting purposes, though it is primarily for domestic individuals and entities.

  • 8606 Form:

    Used for reporting nondeductible contributions to traditional IRAs and distributions from IRAs. Though its use case is more specific—focusing on individual retirement accounts—it shares with the 1042-S the goal of ensuring accurate tax reporting and payment.

Dos and Don'ts

When filling out the IRS 1042-S form, it's important to keep certain practices in mind to ensure accuracy and compliance. Below is a list of things you should and shouldn't do:

  • Do review the official IRS instructions for the 1042-S form before beginning. This ensures you understand the requirements and definitions.
  • Do double-check the taxpayer identification numbers (TINs) to make sure they are accurate. Incorrect TINs can lead to processing delays or errors.
  • Do report in U.S. dollars, converting any foreign currency amounts according to the IRS's yearly exchange rate. Always round to the nearest dollar.
  • Do provide all required information for each applicable section to avoid incomplete form submissions. Missing information can result in the form being returned or penalties.
  • Don't guess on any answers. If unsure, seek clarification from a tax professional or the IRS instructions to avoid mistakes.
  • Don't use corrections fluid or tape for mistakes. Instead, if you make an error, start over with a new form to ensure readability.
  • Don't submit the form without double-checking all information, including the recipient’s name, address, and the amount reported. Accuracy is crucial.
  • Don't overlook the need to also file Form 1042, the annual withholding tax return for U.S. source income of foreign persons, if you're issuing a 1042-S form.
  • Don't forget to sign and date the form. An unsigned form is considered incomplete and will not be processed.

Misconceptions

The IRS 1042-S form is a critical document for non-U.S. residents who receive certain types of income from U.S. sources. Despite its importance, there are several misconceptions surrounding this form that can lead to confusion and mistakes. Let’s debunk some common myths to ensure clearer understanding and compliance.

  • Only individuals need to worry about the 1042-S form. Both individuals and entities, such as corporations and partnerships that are not U.S. residents, can be subject to reporting and withholding requirements on certain types of U.S. source income.
  • If I didn’t earn income in the U.S., I don’t need to file the 1042-S. This form also covers other kinds of distributions, not just earnings, from U.S. sources. This can include scholarships, royalties, and certain types of grants, even if they don't constitute "income" in the traditional sense.
  • All U.S. income for non-residents is reported on a 1042-S form. Not all U.S. source income for non-residents is reported on the 1042-S. Types of income such as wages that are subject to W-2 reporting or investment income that might be reported on a 1099 form will not be listed on a 1042-S. Different income types have different reporting requirements.
  • Submitting Form 1042-S is the responsibility of the income recipient. Actually, the obligation to provide a completed 1042-S form falls on the payer or withholding agent, not the recipient of the funds. However, recipients do need to provide certain information to the payer to ensure accurate reporting.
  • There’s no penalty for late filing of Form 1042-S. Penalties can be severe for failing to file Form 1042-S on time or for filing an incorrect form. These penalties can accumulate over time, significantly impacting those responsible for filing.
  • If taxes are withheld at source, filing Form 1042-S is not required. Regardless of whether taxes were withheld or not, if there is reportable income, a Form 1042-S must be filed. Withholding is a separate matter from the requirement to report payment.
  • Form 1042-S is only for reporting income paid to individuals outside the U.S. This form is used to report amounts paid to foreign individuals, corporations, partnerships, trusts, estates, and other foreign entities. Its scope is not limited to individual persons outside the U.S.
  • You can file Form 1042-S electronically without any special software. While the IRS does allow for electronic filing of Form 1042-S, it requires the use of specific software or services that are approved for IRS e-filing. Simply emailing a filled-out form or submitting it through a basic online upload portal is not acceptable.
  • One 1042-S form is enough for reporting multiple payments to the same recipient. Each type of income paid to the same recipient must be reported on a separate Form 1042-S. For example, if a scholarship recipient also receives a stipend, each of these amounts would require a separate form.
  • All foreign entities receiving U.S. sourced income should be reported on Form 1042-S. While Form 1042-S does cover a broad range of foreign entities, there are specific criteria for who needs to be reported on this form based on the type of income and the nature of the payee’s claim to that income. Understanding these nuances is critical for accurate reporting.

Addressing these misconceptions about the IRS 1042-S form is essential for individuals and entities dealing with U.S. sources of income. Proper understanding and compliance not only facilitate smooth financial operations but also avoid potentially severe penalties.

Key takeaways

The Internal Revenue Service (IRS) Form 1042-S is a tax form used for reporting income paid to a foreign person. Here are key takeaways you should be aware of:

  • Who Needs to File: IRS Form 1042-S must be filed by U.S. payers or withholding agents who pay income to foreign individuals or entities. This includes but is not limited to, wages, dividends, royalties, and scholarships.
  • Types of Income Reported: It is crucial to understand that Form 1042-S covers a range of income types paid to non-U.S. residents. The form differentiates income types, which affects reporting requirements and tax withholding rates.
  • Withholding Tax: One of the form’s primary purposes is to report any tax withheld under chapter 3 or 4 of the Internal Revenue Code. Correctly applying withholding tax rates requires understanding of the tax treaties between the U.S. and the recipient's country of residence.
  • Deadlines are Crucial: Timely filing of Form 1042-S is essential. The form must be submitted to the IRS and the income recipient by March 15 following the calendar year in which the income was paid. Delayed submissions can result in penalties.
  • Multiple Forms May Be Necessary: A separate Form 1042-S must be filed for each recipient of income and for each type of income paid to the same recipient. This requires meticulous record-keeping and organization.
  • Electronic Filing: Filing electronically is an option for those who are submitting 250 or more forms, although it is highly recommended for efficiency and accuracy. Electronic filing can simplify the submission process and help in maintaining records.
  • Importance of Accurate Information: Ensuring the accuracy of the information reported on Form 1042-S is paramount. This includes the recipient’s personal details, Taxpayer Identification Number (TIN), and the country code of residence for tax purposes. Inaccurate information can lead to compliance issues and penalties.

In summation, proper compliance with the requirements for filing Form 1042-S is a complex but essential part of fulfilling U.S. tax obligations when dealing with foreign individuals or entities. Understanding the nuances of this form helps in avoiding penalties and ensuring that payments to foreign persons are reported correctly.

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