Table of Contents
Use Form 1042 to report the following.
The tax withheld on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts.
The section 5000C 2% excise tax due on specified Federal procurement payments.
Every withholding agent or intermediary (see definitions next) who receives, controls, has custody of, disposes of, or pays any fixed or determinable annual or periodical income must file an annual return for the preceding calendar year on Form 1042. Also, any PTP or nominee making a distribution of ECI under section 1446 must file Form 1042 for the preceding calendar year.
You must file Form 1042 if any of the following applies.
You are required to file Form(s) 1042-S (whether or not any tax was withheld or was required to be withheld). File Form 1042 even if you file Forms 1042-S electronically.
You pay gross investment income to foreign private foundations that are subject to tax under section 4948(a).
You pay any foreign person specified Federal procurement payments.
Any person required to withhold tax is a withholding agent. A withholding agent may be an individual, trust, estate, partnership, corporation, nominee (under section 1446), government agency, association, or tax-exempt foundation, whether domestic or foreign.
An intermediary is a person who acts as a custodian, broker, nominee, or otherwise as an agent for another person, regardless of whether that other person is the beneficial owner of the amount paid, a flow-through entity, or another intermediary.
Rev. Proc. 2000-12, which is on page 387 of Internal Revenue Bulletin 2000-4 at www.irs.gov/pub/irs-irbs/irb00-04.pdf;
Notice 2001-4, which is on page 267 of Internal Revenue Bulletin 2001-2 at
Rev. Proc. 2003-64, Appendix 3, 2003-32 I.R.B. 306, available at
Rev. Proc. 2004-21, 2004-14 I.R.B. 702, available at
Rev. Proc. 2005-77, 2005-51 I.R.B. 1176, available at
Regularly engaged in the business of borrowing securities of U.S. corporations and lending such securities to unrelated customers; and
Subject to audit by the IRS under section 7602 or, in the case of a QI, an external auditor.
Mail Form 1042 by March 17, 2014, to:
Ogden Service Center
P.O. Box 409101
Ogden, UT 84409
Use Form 1042-T to transmit paper Forms 1042-S.
For details on the withholding of tax, see Pub. 515. You can get Pub. 515 by calling 1-800-TAX-FORM (1-800-829-3676) or by downloading it from IRS.gov. Click on “Forms and Pubs” and then on “Publication Number.”
If you need help completing Form 1042, call 267-941-1000 (not a toll-free number) from 6:00 a.m. to 11:00 p.m. Eastern time
or write to:
Internal Revenue Service
Philadelphia, PA 19255-0725
Use Form 941, Employer’s QUARTERLY Federal Tax Return, to report income tax withheld and social security and Medicare taxes on wages paid to a nonresident alien employee.
Use Form 945, Annual Return of Withheld Federal Income Tax, to report income tax withheld under section 3405 from pensions, annuities, and certain other deferred income paid to a nonresident alien individual. However, if the recipient has elected under section 3405(a)(2) or (b)(2) not to have withholding under section 3405, these payments are subject to withholding under section 1441 and the tax withheld must be reported using Forms 1042 and 1042-S.
Use Schedule H (Form 1040), Household Employment Taxes, to report income tax withheld and social security and Medicare taxes on wages paid to a nonresident alien household employee.
You are required to use the Electronic Federal Tax Payment System (EFTPS), discussed later, to deposit the tax withheld and required to be shown on Form 1042.
The amount of tax you are required to withhold determines the frequency of your deposits. The following rules explain how often deposits must be made.
If you are requesting an extension of time to file using Form 7004, follow these rules to see if you must make a deposit of any balance due or if you can pay it with Form 7004. See Form 7004 and its instructions for more information.
If at the end of any quarter-monthly period the total amount of undeposited taxes is $2,000 or more, you must deposit the taxes within 3 business days after the end of the quarter-monthly period. (A quarter-monthly period ends on the 7th, 15th, 22nd, and last day of the month.) A business day is any day other than a Saturday, Sunday, or legal holiday in the District of Columbia.
If at the end of any month the total amount of undeposited taxes is at least $200 but less than $2,000, you must deposit the taxes within 15 days after the end of the month. If you make a deposit of $2,000 or more during any month except December under rule 1, earlier, carry over any end-of-the-month balance of less than $2,000 to the next month. If you make a deposit of $2,000 or more during December, any end-of-December balance of less than $2,000 should be remitted with your Form 1042 by March 17, 2014.
If at the end of a calendar year the total amount of undeposited taxes is less than $200, you may either pay the taxes with your Form 1042 or deposit the entire amount by March 17, 2014.
www.eftps.gov/eftps. Information is also available at www.irs.gov/e-pay .
All payments should be made in U.S. dollars.
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.
If you include interest or penalties with your payment, identify and enter the amount in the bottom margin of Form 1042. Do not include interest or penalties in the balance due on line 68.
|More Online Instructions|