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Form 1042-S Filing Deadline 2026 and Compliance Rules

Any payer, such as businesses, educational institutions, or financial platforms, that makes payments to non-U.S. persons must file Form 1042-S with the IRS. This is an essential part of staying tax-compliant and avoiding penalties.

What Form 1042-S Reports

Form 1042-S is used for reporting U.S.-source payments made to non-U.S. persons, along with any tax withheld under Chapters 3 (nonresident withholding) and/or 4 (FATCA). These payments can include:

  • Interest
  • Dividends
  • Royalties
  • Prizes and awards
  • Scholarships or grants
  • Payments for services

Note: A separate 1042-S must be filed for each recipient, and each copy must be furnished to the recipient.

Who Needs to File Form 1042-S?

  • A business or corporation
  • A university or school
  • A bank or investment platform
  • A partnership making cross-border payments

Form 1042-S Due Date 2026

The IRS requires the payer or withholding agents to file the form with the IRS and furnish recipient copies by March 15 of the year after the payment is made.

 

Note: The 1042- S filing deadline moves to the next business day if March 15 falls on a holiday or weekend.

Special partnership rule: If a partnership withholds on a foreign partner after March 15, the due date can be moved to September 15 of that year.

Getting An Extension For Form 1042 S Deadline

If a withholding ageny is unable to meet the 1042-S deadline March 15, they can request for an extensionbefore the original deadline.

Filing Extension (IRS Copy A)

  • Use 1042-S extension Form 8809
  • Gives you an automatic 30 days to file with the IRS
  • A second 30-day extension can be requested, if needed by filing another Form 8809

Furnishing Extension (Copies to Recipients)

  • Use Form 15397 for a one-time 30-day extension
  • Send this by the original recipient distribution due date

Important: Filing and furnishing are two separate actions. It is advisable to track both extensions and keep confirmation copies for your records.

Understanding E-Filing Form 1042-S And How To Send It

E-filing is required if a payer files 10 or more information returns or the entire year.

Return Count E-Filing Required?
9 or fewer No (paper allowed)
10 or more Yes

Important: If you’re filing on paper, attach Form 1042-T to your 1042-S forms.

Simple Steps To Follow For Filing Form 1042-S With Tax1099

  • Gather payee details, such as names, addresses, TIN or Tax IDs, country, payment amounts, etc.
  • Confirm the total payment amount and cross-check against Form 1042
  • Choose filing method:
    1. E-file via Tax1099 if filing for more than 10 returns
    2. Or mail paper forms with Form 1042-T
  • Send recipient copies electronically or by mail
  • Confirm acceptance and store your records securely

Partnerships Withholding In The Next Year

When a partnership withholds after March 15 on a foreign partner’s share and designates the amount for the prior year, the due date to file Forms 1042-S is September 15 of the subsequent year.

In such cases, a payer should ensure the following:

  • File and furnish by September 15 of the following year
  • Check Box 7c when filing 1042-S
  • Keep documentation showing the payment ties to the prior year

Penalties: What Happens If You Miss the 1042-S Filing Deadline?

Timeline Penalty Per Form Maximum Penalty
If up to 30 days late $60 $683,000 per year ($239,000 for a small business)
After 30 days $130 $2,049,000 per year ($683,000 for a small business)
After August 1 $340 $4,098,500 per year ($1,366,000 for a small business)
Intentional Disregard $680 or 10% of the total amount to be reported No maximum limit
Failure to furnish copy to recipient Up to $340 per recipient $4,098,500 per year ($1,366,000 for a small business)

Tips To Avoid Penalties:

  • File and furnish on time
  • E-file if you have more than 10 returns
  • Double-check names, TINs, and amounts before submitting
  • Fix errors quickly and keep corrected records

Payer Checklist On Filing Form 1042-S

Before clicking the “submit” button for 1042-S filing, check the following:

  • Check which payments to non-U.S. persons need to file Form 1042-S
  • Create a single calendar to record all filing and furnishing
  • Include placeholders for Form 8809 and Form 15397 if extensions are needed
  • Confirm if the 10-return e-file rule applies
  • If paper filing, include Form 1042-T
  • Confirm acceptance and store all records for at least 3 years

How to E-File Form 1042-S With Tax1099

Platforms like Tax1099 can make eFiling Form 1042-S seamless and easy..

  • Upload data, such as recipient names, addresses, tax IDs, amounts, and country by integrating with you existing platform or via Excel upload
  • Reconfirm payments and withholding amounts with Form 1042.
  • Upload all the necessary 1042-S data to the Tax1099 platform.
  • Send electronic or printed copies to recipients using Tax1099’s e-delivery feature.
  • Securely store records for up to 4 years in your Tax1099 account for audit purposes.

Real-Life Scenarios

Scenario Action
Bank interest paid to a non-U.S. person (2025) File Form 1042-S by the due date. Use Form 8809 to request an extension for late filing.
Startup files 6 1099-NECs, 3 1099-MISCs, and 1 1042-S Total = 10 → E-filing required.
University pays royalties to a foreign scholar (2024) File 1042-S and use the correct income code for royalties and the correct treaty exemption code/tax rate.
Partnership withheld in April 2026 (for 2025 amounts) File 1042-S by Sept 15, 2026 and check Box 7c.
Small payer chooses paper filing Include Form 1042-T with mailed 1042-S forms by due date.

FAQs: 1042-S Filing Questions Answered

1: Are filing and furnishing for 1042-S due the same day?

Yes, both filing and furnishing Form 1042-S are due by March 15 (or the next business day if it’s a holiday or weekend).

2: What forms provide more time?

Form 8809 extends filing deadling whileForm 15397 extends furnishing deadline. Both gives 30 days of extra time

3: Do I need to e-file?

Yes, if you are filing 10 or more returns total.

4: What’s Form 1042-T?

The transmittal form that is required when filing paper 1042-S.

5: How long should records be kept?

At least 3 years, including acceptance receipts and extension approvals. Tax1099 stores for an extra year (4) for compliance.

6: What if I make a mistake?

File a corrected 1042-S as soon as possible and keep the updated acceptance.

Final Thoughts

You can confidently hit the 1042-S due date of 2026 when you understand who needs to file, what needs to be reported, and when.
Start E-Filing Form 1042-S with Tax1099, and manage deadlines, request extensions, send recipient copies, and stay IRS-compliant, all in one place.