Foreign Person’s U.S. Source Income Subject to Withholding
Federally Mandated Reporting/Disclosure Form
Program Title and Description:
Foreign Person’s U.S. Source Income Subject to Withholding (Form 1042-S)
Who is Responsible for Reporting?
Nicole Jiang, Finance and Accounting Specialist
Abraham Hammar, International Financial and Operations Manager
Where is Report Physically Located?
International Payroll Office, JDMC 507
What Should be Reported?
U.S. source income paid to an individual subject to Treasury Regulations, sections 1441 and 1442: (1) all non-employee payments made to non-resident aliens regardless of withholding or not, i.e. Independent Contractor payments; (2) compensation for employees claiming tax treaty; and (3) non-service scholarships and fellowship grants (non-qualified).
When Should it be Reported?
No later than March 15 for previous calendar year
Where is it to be Reported?
Individuals and Internal Revenue Service (IRS)
Why Should it be Reported?
Per Treasury Regulation 1441 and 1461
How is it Reported?
IRS designed forms are completed. They are mailed to the individual and electronically transmitted to the IRS.
If notification is required, how is it reported?
N/A