An important filing change has been implemented for tax year 2023 that we want to make sure you are
prepared for. This change applies to any business that pays US sourced income to foreign persons. If your organization pays foreign individuals or entities and files the 1042-S form – you are also required to file form 1042, which is the tax return “cover letter” or consolidated statement of all payments and withholding to these foreign individuals.
To help further understand this change, subject matter expert Wendy Walker breaks down the details on this new requirement and what it means for you. Some of the topics discussed include:
• Who is required to comply with this change
• Details of the electronic filing requirements for form 1042
• How to electronically file form 1042