2023 Form 1042 - Annual Withholding Tax Return For Us Source Income Of Foreign Persons
The 2023 Federal Form 1042: Annual Withholding Tax Return for U.S. Source Income of Foreign Persons is a document used to report and pay taxes on income paid to foreign persons, such as non-resident aliens, foreign corporations, and foreign partnerships. It's an essential form for withholding agents, including banks, brokerages, and other financial institutions, to report and pay taxes on U.S. source income paid to foreign persons.
What is Form 1042 used for?
Form 1042 is used to report and pay taxes on U.S. source income paid to foreign persons, including:
- Interest, dividends, and royalties
- Compensation for services performed in the United States
- Gains from the sale of U.S. real property interests
- Other income subject to withholding
The form is used to report the amount of tax withheld and paid to the IRS on behalf of the foreign person.
Who needs to file Form 1042?
Withholding agents, including:
- Banks and financial institutions
- Brokerages and investment firms
- Insurance companies
- Real estate investment trusts (REITs)
- Other entities that make payments of U.S. source income to foreign persons must file Form 1042.
When is Form 1042 due?
The deadline for filing Form 1042 is March 15th of each year, unless an extension is requested. The form must be filed electronically through the IRS's Filing Information Returns Electronically (FIRE) system.
For the current year's Form 1042, click here.