IRS Form 1042-S and Instructions, Foreign Person's US Source Income Subject to Withholding

Entity Mandating Form: The Internal Revenue Service

Applicability: Every withholding agent who has control, custody, or receipt of amounts subject to withholding files Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding on an annual basis.

Amounts subject to withholding include U.S. source income paid to a foreign person, even if nothing was withheld due to a treaty provision or an exemption from withholding that is contained in the Internal Revenue Code.

Amounts paid to foreign students, trainees, teachers, and researchers as scholarship or fellowship income, and compensation for personal services, must be reported on Form 1042-S. Amounts that are exempt from tax under I.R.C. § 117 as scholarships are not reported on Form 1042-S.

Obtaining This Form: An employer may download Form 1042-S directly from the Internal Revenue Service's website. The Form 1042-S Instructions are also available for downloading at the Internal Revenue Service's website.

Additional Resources

Internal Revenue Service

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