Form 1042-S

Form 1042-S

A form that one files with the IRS to report certain U.S. income of a foreign person that is subject to withholding. It is especially used for income derived from a nominee or a publicly-traded partnership. Many common types of income, notably income reported on W-2 or 1099 forms, is not reported on Form 1042-S.
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(5) (The de minimis reporting requirements for Forms 1099-MISC and 1099-INT are $600 and $10, respectively.) To the extent interest is paid to a nonresident alien, the payer must file Form 1042-S, Foreign Person's U.S.
Form 1042-S is filed with the IRS, but also provided to each payee, and reports the income and amount of withholding specific to that payee.
Withholding agents use Form 1042-S, an information return, to report U.S.
For foreign homeowners, a property manager must send a Form 1042-S instead.
Potential Property Manager's Penalty: 50 units each producing $10,000 in gross revenue a year: Potential penalties do not include interest at applicable rates PENALTY: 30 percent of gross rental withholding penalty $150,000 Failure to deposit taxes within 15 days $15,000 Failure to file Form 1042-S $15,000 Late filing penalty of Form 1042 $37,500 Risk Total $217,500 Estimated annual management fee income at 10 percent of gross rent Note: If convicted of felony, the fine is no more than $10,000 and five years in prison BRENT GREEN, CPA, (INFO@INTEGRATEDFG.COM) IS MANAGING PARTNER & INTERNATIONAL TAX CONSULTANT AT NONRESIDENT TAX ADVISORS, A DIVISION OF INTEGRATED FINANCIAL GROUP, IN STERLING HEIGHTS, MICH.
Source Income of Foreign Persons, and information return Form 1042-S, Foreign Person's U.S.
While Form 1042 is used to report tax withholding, Form 1042-S is used to report payments of U.S.-source income to foreign persons.
Withholding agents use Form 1042-S, Foreign Person's U.S.-Source Income Subject to Withholding, to report U.S.
An ITIN is also required on Form 1042-S to claim a zero or reduced rate of withholding under a tax treaty.
* Verification of Form 1042-S credit claimed on Form 1040NR: This campaign is intended to ensure the amount of withholding credits or refunds claimed on Forms 1040NR, U.S.
The payer or withholding agent is fully liable for all taxes owed and is required to report the income paid to each foreign recipient on a Form 1042-S, Foreign Person's U.S.-Source Income Subject to Withholding.
Source Income of Foreign Persons, and Form 1042-S, Foreign Persons U.S.