Form 1042-S: Withholding on Foreign Person's U.S. Income

Form Revisions, Avoiding Filing Errors, Credit Disallowances, and Audit Penalties

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A


Tuesday, November 2, 2021

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, October 8, 2021

or call 1-800-926-7926

This course will provide tax advisers with a thorough and practical guide to preparing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. The panel will incorporate recent form revisions. The webinar will also review common mistakes and offer ways to reduce IRS scrutiny and mitigate late-filing or non-filing penalties.

Description

Withholding agents who pay amounts subject to withholding tax, such as interest, dividends, and fees to foreign persons, must report the US-sourced amounts on IRS Form 1042-S. Certain FDAP (fixed, determinable, annual, or periodic income) payments are reportable regardless of withholding. Tax professionals must be aware of nonresident aliens' withholding requirements (NRAs) and the proper 1042-S reporting requirements for various income classes.

The IRS Foreign Payments Practice, a practice within the IRS Large Business and International Business Compliance division is devoted to enforcing withholding and remittance of these required payments. Failure to accurately report amounts paid to NRAs can lead to stiff penalties for the withholding agent, including secondary liability for the withholding tax, interest, and various penalties.

Listen as our panel reviews the latest federal rules and offers guidance for a tax professional's completion of Form 1042-S, including withholding and filing requirements.

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Outline

  1. Background
  2. When withholding and Forms 1042, 1042-S, and 1042-T are required
  3. Payments to foreign persons subject to federal withholding tax
  4. Form revisions
  5. Exemptions
  6. Reporting treaty positions
  7. Completing the Form 1042-S
  8. New IRS enforcement initiatives
  9. Avoiding noncompliance penalties

Benefits

The panel will examine these and other relevant topics:

  • Anticipating and avoiding common errors that tax professionals make when preparing Form 1042-S
  • How are lag payments treated?
  • Identifying triggers and issues that could lead to an audit
  • Recent revisions to Form 1042-S

Faculty

Khan, Jerry
Jerry Khan

Managing Director, Information Reporting & Withholding Tax
KPMG US

Mr. Khan has extensive experience with information reporting and withholding tax documentation, reporting, and project...  |  Read More

Prendergast, Elis
Elis A. Prendergast

Senior Manager
KPMG

Mr. Prendergast is part of the firm's Information Reporting and Withholding practice. He has considerable...  |  Read More

Attend on November 2

Early Discount (through 10/08/21)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend November 2?

Early Discount (through 10/08/21)

CPE credit is not available on downloads.

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