What Is the Due Date for Form 1042-S?
Understand the annual compliance cycle for Form 1042-S. This guide explains the time-sensitive actions required for proper filing and furnishing.
Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is an information return used by withholding agents to report specific payments made to foreign persons. These agents, such as businesses or financial institutions, must report various types of U.S. source income. The form details the gross income paid and any U.S. tax withheld from those payments, covering items like interest, dividends, royalties, and compensation. This reporting is a distinct process from the agent’s own tax return, focusing on funds distributed to foreign individuals or entities.
Filing and Furnishing Deadlines
The deadline for both filing Form 1042-S with the Internal Revenue Service (IRS) and furnishing copies to income recipients is March 15 of the year after the payment was made. This dual obligation requires the withholding agent to send Copy A of the form to the IRS and provide a separate copy to each foreign person who received income. Should March 15 land on a Saturday, Sunday, or a legal holiday, the due date automatically shifts to the next business day. Meeting these deadlines is a compliance responsibility for any agent handling payments to foreign persons.
Requesting an Extension to File
Withholding agents who anticipate difficulty meeting the March 15 filing deadline can request an extension by submitting Form 8809, Application for Extension of Time to File Information Returns, to the IRS. Filing this form before the original due date results in an automatic 30-day extension to file with the IRS, and a reason for the delay is not required.
While this extension only applies to filing with the IRS, a separate extension for furnishing statements to recipients can be requested. This is done by submitting a specific application to the IRS, which, if approved, grants up to 30 extra days. If more time is needed beyond the automatic 30 days, a second Form 8809 can be submitted, but this request is not automatic and requires a valid reason.
Submitting the Extension Request
Form 8809 must be submitted to the IRS on or before the original March 15 due date. Withholding agents have two methods for submission: mailing a paper copy or filing electronically through the IRS’s Filing Information Returns Electronically (FIRE) system. After the IRS receives a timely filed Form 8809, the filer is granted an automatic 30-day extension. No formal approval notice is sent for the initial automatic extension, so the filer can proceed with the understanding that they have the additional time.
Penalties for Non-Compliance
Failing to file Form 1042-S on time or to furnish a correct copy to the recipient can result in significant penalties. For the 2024 tax year, the penalties for late filing are tiered: $60 per form if filed within 30 days of the due date; $130 per form if filed more than 30 days late but by August 1; and $330 per form if filed after August 1 or not at all. These penalties can accumulate, with maximums reaching into the millions for large organizations.
If the failure to file or furnish a correct statement is due to intentional disregard, the penalties are substantially higher. For the 2024 tax year, this penalty is the greater of $630 per form or 10% of the total amount required to be reported, with no maximum limit.