Penalties Related to Form 1042-S


The following penalties apply to the person required to file Form 1042-S. The penalties apply to both paper filers and to electronic filers.

Failure to File or Late or Incorrect Filing of Form 1042-S with IRS

A penalty may be imposed for failure to file each correct and complete Form 1042-S when due (including extensions), unless you can show that the failure was due to reasonable cause and not willful neglect.

Refer to Exhibit 20.1.7-1 of Part 20 of the Internal Revenue Manual (IRM) for the inflation-adjusted penalty amounts based when the return is due and when filed/furnished to the IRS. For example, for returns due in 2024 (filing year 2024), the penalty for failure to file by August 1, or not filing at all, is up to $310 per return.

If you intentionally disregard the requirement to report correct information, the penalty per Form 1042-S is increased to $630 (for filing year 2024) or, if greater, 10% of the total amount of items required to be reported, with no maximum penalty. 

Failure to Furnish Correct Form 1042-S to Recipient

If you fail to provide correct statements to recipients and cannot show reasonable cause, a separate penalty of up to $310 each (for filing year 2024) may be imposed for each failure to furnish Form 1042-S to the recipient when due. The penalty may also be imposed for failure to include all required information or for furnishing incorrect information on Form 1042-S. If you intentionally disregard the requirement to report correct information, each potential penalty increases in the same manner as the penalty for failure to file.

Failure to File Electronically

If you are required to file Form 1042-S electronically but fail to do so, and you do not have an approved waiver on record, you are subject to penalties unless you establish reasonable cause. The penalty applies separately to original returns and corrected returns.

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