What Is Form 1042?

What is Form 1042 – It’s used to report a foreign person’s income if it is sourced in the U.S. and subject to withholding. 

Who Must File 1042?

Every withholding agent or intermediary that receives, controls, has custody of, disposes of, or pays a with holdable payment must file an annual return for the preceding calendar year on Form 1042.

Also, any Publicly Traded Partnership (PTP) or nominee making a distribution of Effectively Connected Income (ECI) under section 1446, or any entity required to report a distribution on Form 1042-S that is subject to withholding under section 1445, must file Form 1042 for the preceding calendar year.

1042 Filing Requirements

You must file if the following applies:

• You can file to report a recipient tax withheld by your withholding agent
  • Even if you file 1042-S electronically, file 1042.
• You pay gross investment income to foreign private foundations that are subject to tax under section 4948
• You pay any foreign person specified federal procurement payments that are subject to withholding under section 5000C
• You are a qualified intermediary (QI), withholding foreign partnership (WP), withholding foreign trust (WT), participating foreign financial institution (FFI), or reporting Model 1 FFI making a claim for a collective refund under your respective agreement with the IRS
• You pay an eligible deferred compensation item to a covered expatriate or you are a trustee making a distribution from a non-grantor trust to a covered expatriate under section 877A

Form 1042 Deadline

The Forms 1042, 1042-S, and 1042-T must be filed by March 15 of the year following the calendar year in which the income subject to reporting was paid. If March 15 falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.

How to eFile 1042 for the Year 2020?

Tax1099 is the go-to source for your 1099 filings. You can eFile Form 1042 Online for the year 2020 using Tax1099. Don’t wait for the deadline eFile Now.!