Discussion of Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Use Form 1042 to report tax withheld on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts.
The Forms 1042 and 1042-S 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. Form 1042 is a calendar year tax return. There are no provisions for filing a fiscal-year Form 1042.
Who Must File
Every withholding agent or intermediary who has control, receipt, custody, disposal or payment of any fixed or determinable, annual or periodic U.S. source income must file an annual return for the preceding calendar year on Form 1042. You must file Form 1042 if:
- You are required to file Form(s) 1042-S (whether or not any tax was withheld or was required to be withheld), or
- You pay gross investment income to foreign private foundations that are subject to tax under section 4948(a).
File only one Form 1042 consolidating all Form 1042-S recipient information, regardless of the number of different clients, branches, divisions, or types of income for which you are the withholding agent. However, if you are acting in more than one capacity (for example, you are acting as a QI for certain designated accounts and as an NQI for other accounts), file a separate Form 1042 for each capacity in which you are acting.
Do not attach paper Forms 1042-S with your Form 1042. Form 1042-T is used to transmit the filing of Forms 1042-S. Form 1042 could be filed separately and does not have to be accompanied by Form 1042-T with attached paper Form(s) 1042-S.
Where to File
You must file Form 1042 with the:
Ogden Service Center
P.O. BOX 409101
Ogden, UT 84409
Reporting Agent Authorization
Extension of Time to File
You may request an extension of time to file Form 1042 by filing Form 7004 (PDF), Application for Extension of Time to File Certain Excise, Income, Information, and Other Returns. Form 7004 does not extend the time for payment of tax. A separate extension Form 8809, Application for Extension of Time to File Information Returns (PDF), is used to request an extension of time to file Forms 1042-S.
Note: If you are an electronic media transmitter requesting extensions of time to file for more than 50 withholding agents or payers, you must submit the extension requests electronically. See Publication 1187, Specifications for Electronic Filing of Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, for more information.
Interest and Penalties
If you file Form 1042 late, or fail to pay or deposit the tax when due, you may be liable for penalties and interest unless you can show that the failure to file or pay was due to reasonable cause and not willful neglect. For more information refer to the instructions attached to Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
Refer to the Depositing Withheld Taxes section in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.