FS-2017-3 reminds withholding agents that they must complete five identical copies of the Form 1042S: one for the IRS, three for the recipient of the payment, and one for the withholding agent's records.
FS-2017-3 also clarifies the rules regarding extensions, stating that to request a 30-day extension to file Form 1042S, the withholding agent must file Form 8809 (Application for Extension of Time to File Information Returns) before the March 15 due date of the Form 1042-S.
* Non-Resident Alien Withholding: We raised with the IRS concerns that they were going to commence audits of non-financial institutions related to documentation (Form W8 series), withholding, and reporting (Form 1042S
) compliance related to items such as vendor payments and royalties without involving the community.
The payor is generally required to provide Form 1042S
, Foreign Person's U.S.
In the case of certain related or controlled corporate payers, however, the waiver applies only if the income is properly reported on form 1042S
United States-source income of nonresident alien individuals and other foreign persons is reported on Form 1042S, Foreign Person's U.S.-Source Income Subject to Withholding.
Form 1042S, Foreign Person's U.S.-Source Income Subject to Withholding, is filed by the payer to report this income and the U.S.
Department of the Treasury, Internal Revenue Service, Instructions for Form 1042S. Bank deposit interest is generally excluded from Form 1042-S reporting, although an exception exists for Canadian residents who are not U.S.
NOTES Detail may not add to totals because of rounding Form 1042S is entitled Foreign Persons U S, Source Income Subject to Withholding." Table 2.
A payer or designated agent is fully liable for all taxes owed by a recipient and also reports the income paid to each recipient on a Form 1042S. Without this withholding requirement, there would be no effective way to enforce taxpayer compliance because foreign recipients are generally not required to file U.S.
In 2000, interest payments reported on Form 1042S, which excludes bank deposit interest, increased 11.6 percent to $122.3 billion.
For 1999, interest payments reported on Form 1042S
, which excludes bank deposit interest, increased 15.2 percent to $109.6 billion, accounting for 69.1 percent of total U.S.-source income paid to foreign persons.