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Current Year Tax Map
Publication 515
taxmap/pubs/p515-008.htm#en_us_publink1000225050

Returns Required(p31)

rule
Every withholding agent, whether U.S. or foreign, must file Forms 1042 and 1042-S to report payments of amounts subject to NRA withholding unless an exception applies. Do not use Forms 1042 and 1042-S to report tax withheld on the following:
Due date
Forms 1042 and 1042-S must be filed by March 15 of the year following the calendar year in which the income subject to reporting was paid. If March 15 falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.
taxmap/pubs/p515-008.htm#en_us_publink1000225052

Form 1042.(p31)

rule
Every U.S. and foreign withholding agent that is required to file a Form 1042-S also must file an annual return on Form 1042. You must file Form 1042 even if you were not required to withhold any income tax.
You must file Form 1042 with the:
envelope
Ogden Service Center
P.O. Box 409101
Ogden, UT 84409
taxmap/pubs/p515-008.htm#en_us_publink1000225054

Form 1042-S.(p31)

rule
Every U.S. and foreign withholding agent must file a Form 1042-S for amounts subject to NRA withholding unless an exception applies. The form can be filed electronically or on paper. A separate Form 1042-S is required for each recipient of income to whom you made payments during the preceding calendar year regardless of whether you withheld or were required to withhold tax. You must use a separate Form 1042-S for each type of income that you paid to the same recipient. See Statements to recipients, later.
You must furnish a Form 1042-S for each recipient even if you did not withhold tax because you repaid the tax withheld to the recipient or because the income payment was exempt from tax under the Internal Revenue Code or under a U.S. income tax treaty.
You can use a substitute Form 1042-S if it meets the requirements listed in Publication 1179. Get Publication 1179 for more information.
EIC
If you file a substitute for Copy A with the IRS that does not conform to the specifications in Publication 1179, you may be subject to a penalty for failing to file a correct return. See Penalties, later.
taxmap/pubs/p515-008.htm#en_us_publink1000225055
Joint owners. (p31)
If all the owners provide documentation that permits them to receive the same reduced rate of withholding (for example, under an income tax treaty), you should apply the reduced rate of withholding. You are required, however, to report the payment on one Form 1042-S to the person whose status you rely upon to determine the withholding rate. If, however, any one of the owners requests its own Form 1042-S, you must furnish Form 1042-S to the person who requests it. If more than one Form 1042-S is issued for a single payment, the total amount paid and tax withheld reported on all Forms 1042-S cannot exceed the total amounts paid to joint owners.
taxmap/pubs/p515-008.htm#en_us_publink1000225056
Electronic reporting.(p31)
Withholding agents or their agents generally must file electronically if they are required to file 250 or more Forms 1042-S with the IRS. You are encouraged to file electronically even if you are not required to.
A completed Form 4419, Application for Filing Information Returns Electronically (FIRE), should be filed at least 30 days before the due date of the return. Returns may not be filed electronically until the application has been approved by the IRS.
For information and instructions on filing Forms 1042-S electronically, get Publication 1187, Specifications for Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically. If you file electronically, you will use the Filing Information Returns Electronically (FIRE) system. You get to the system through the Internet at fire.irs.gov.
taxmap/pubs/p515-008.htm#en_us_publink1000225057

Form 1042-T.(p31)

rule
If Form 1042-S is filed on paper, it must be filed with Form 1042-T. You may need to file more than one Form 1042-T. See the instructions for that form for more information.
taxmap/pubs/p515-008.htm#en_us_publink1000225058

Deposit interest paid to nonresident alien individuals in 2012.(p31)

rule
Generally, you do not have to report interest that is (a) on a deposit maintained at a bank's office in the United States and (b) not effectively connected with a trade or business within the United States. However, if you pay deposit interest of $10 or more to a nonresident alien individual who resides in Canada and is not a U.S. citizen, you have to report it on Form 1042-S.
taxmap/pubs/p515-008.htm#en_us_publink1000293394

Deposit interest paid to certain nonresident alien individuals in 2013.(p31)

rule
Beginning in 2013, information reporting has been extended to interest earned by residents of other foreign countries. Deposit interest of $10 or more paid to any nonresident alien individual who is a resident of a foreign country with which the United States has agreed to exchange tax information pursuant to an income tax treaty or other convention or bilateral agreement, must be reported on Form 1042-S.
Revenue Procedure 2012-24, 2012-20 I.R.B. 913, available at www.irs.gov/irb/2012-20_IRB/ar11.html, identifies those countries for which reporting is required. This list will be updated as appropriate.
Note. You may elect to report interest paid to any nonresident alien.
taxmap/pubs/p515-008.htm#en_us_publink1000225061

Statements to recipients.(p31)

rule
You must furnish a statement to each recipient for whom you are filing a Form 1042-S by the due date for filing Forms 1042 and 1042-S with the IRS. You may use a copy of the official Form 1042-S for this purpose. Or, you may provide recipients with the information together with, or on, other (commercial) statements or notices. These statements must clearly identify the type of income (as described on the official form), the amount of tax withheld, the withholding rate (including 00.00 if exempt), and the country involved. You may include more than one type of income on the copies of the Form 1042-S that you provide to the recipient of the income. You may not, however, include more than one income line on the copy of the form filed with the IRS.
taxmap/pubs/p515-008.htm#en_us_publink1000259742

(p31)

rule
taxmap/pubs/p515-008.htm#en_us_publink1000266391

Extensions of Time To File(p31)

rule
You can request extensions of time to file Forms 1042 and 1042-S with the IRS and additional extensions to furnish Forms 1042-S to recipients.
taxmap/pubs/p515-008.htm#en_us_publink1000266392

Extension to file Form 1042.(p32)

rule
You can get an automatic 6-month extension of time to file Form 1042 by filing Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns. File Form 7004 on or before the due date of Form 1042. Form 7004 does not extend the time for payment of tax.
EIC
Form 7004 extends only the due date for filing the returns with the IRS. It does not extend the due date for furnishing statements to recipients.
taxmap/pubs/p515-008.htm#en_us_publink1000266394

Extension to file Form 1042-S with the IRS.(p32)

rule
You can get an automatic 30-day extension of time to file Form 1042-S by filing Form 8809, Application for Extension of Time To File Information Returns. You should request an extension as soon as you are aware that an extension is necessary, but no later than the due date for filing Form 1042-S. You may request one additional extension of 30 days by submitting a second Form 8809 before the end of the first extension period. Requests for an additional extension are not automatically granted. Approval or denial is based on administrative criteria and guidelines. The IRS will send you a letter of explanation approving or denying your request for an additional extension.
EIC
If you are requesting extensions of time to file for more than one withholding agent or payer, you must submit the extension request electronically.
taxmap/pubs/p515-008.htm#en_us_publink1000266396

Extension to provide statements to recipients.(p32)

rule
You may request an extension of time to provide the statements to recipients by sending a letter to Internal Revenue Service; Information Returns Branch; Attn: Extension of Time Coordinator; 240 Murall Drive, Mail Stop 4360; Kearneysville, WV 25430. The letter must include (a) your name, (b) your TIN, (c) your address, (d) type of return, (e) a statement that your extension request is for providing statements to recipients, (f) reason for delay, and (g) the signature of the payer or authorized agent. Your request must be postmarked by the date on which the statements are due to the recipients. If your request for an extension is approved, generally you will be granted a maximum of 30 extra days to furnish the recipient statements. See Publication 1187.
EIC
If you are requesting extensions of time to file for recipients of more than 10 withholding agents, you must submit the extension requests electronically. See Publication 1187, Part D, section 4, for more information.
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Penalties(p32)

rule
If you do not file a correct and complete Form 1042 or Form 1042-S with the IRS on time or if you do not provide a correct and complete Form 1042-S to the recipient on time, you may be subject to a penalty.
taxmap/pubs/p515-008.htm#en_us_publink1000269070

Failure to file Form 1042.(p32)

rule
The penalty for not filing Form 1042 when due (including extensions) is usually 5% of the unpaid tax for each month or part of a month the return is late, but not more than 25% of the unpaid tax.
taxmap/pubs/p515-008.htm#en_us_publink1000269071

Failure to file correct Form 1042-S.(p32)

rule
A penalty may be imposed for failure to file Form 1042-S when due (including extensions) or for failure to provide complete and correct information. The amount of the penalty depends on when you file a correct Form 1042-S. The penalty for each Form 1042-S is:
taxmap/pubs/p515-008.htm#en_us_publink1000264252
Small businesses—lower maximum penalties.(p32)
A small business is a business that has average annual gross receipts of $5 million or less for the most recent 3 tax years (or for the period of its existence, if shorter) ending before the calendar year in which the Forms 1042-S are due.
taxmap/pubs/p515-008.htm#en_us_publink1000269120
Exception. (p32)
No penalty is imposed if the following statements are true.
  1. You filed Form 1042-S with the IRS on time, but it was incorrect or incomplete.
  2. You filed a correct Form 1042-S by
    August 1.
If both statements (1) and (2) are true, the penalty for filing incorrect returns (but not for filing late) will not apply to the greater of 10 Forms 1042-S or .5% of the total number of Forms 1042-S and any other information returns you are required to file with the IRS for the calendar year.
taxmap/pubs/p515-008.htm#en_us_publink1000269072

Failure to furnish Form 1042-S to recipient.(p32)

rule
A penalty may be imposed for failure to provide Form 1042-S to the recipient when due (including extensions) or for failing to provide complete and correct information. The amount of the penalty depends on when you provide the correct Form 1042-S. The penalty for each Form 1042-S is:
taxmap/pubs/p515-008.htm#en_us_publink1000269121
Exception. (p32)
No penalty is imposed if you meet all the following requirements.
  1. You provided a Form 1042-S to a recipient on time, but it was incorrect or incomplete.
  2. You provide a correct Form 1042-S to the recipient by August 1.
If you satisfy the requirements in (1) and (2) above, the penalty for providing incorrect returns (but not for filing late) will not apply to the greater of 10 Forms 1042-S or .5% of the total number of all types of information returns you had to provide during the calendar year.
taxmap/pubs/p515-008.htm#en_us_publink1000264255

Penalty for intentional disregard of requirements to file or provide returns.(p32)

rule
If you intentionally disregard the requirement to file Form 1042-S when due, to provide Form 1042-S to the recipient when due, or to report correct information, the penalty is the greater of $250 or 10% of the total amount of the items that must be reported, with no maximum penalty.
taxmap/pubs/p515-008.htm#en_us_publink1000259748
Failure to file electronically.(p32)
If you are required to file Form 1042-S electronically but you fail to do so, and you do not have an approved waiver, you may be subject to a penalty of $50 per form unless you show reasonable cause. The penalty applies separately to original and amended returns. The maximum penalty is $100,000.