Hiring a foreign person or working with one brings its own reporting requirements, which can get quite complicated, especially when it comes to 1042-S due date.
In this blog, we are breaking down the finer details of 1042-S filing deadline and show you how you can file on time to avoid penalties.
What Is Form 1042-S?
Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) reports U.S.-source income paid to foreign individuals, including foreign contractors working in the U.S., international students or researchers receiving scholarships or grants, and foreign vendors or companies receiving U.S.-source payments.
This form helps the IRS track the type of payment given, the total amount paid, and the amount withheld.
A copy of the form is also used by recipients to help with their Form 1042 annual tax return.
Who Reports Foreign Person’s U.S. Sourced Income to the IRS via Form 1042-S?
Form 1042-S is filed by withholding agents (an individual or entity who makes payment to a foreign person and is responsible for withholding U.S. tax). Some common examples include:
- A U.S company paying royalties to a foreign software development company
- A bank or broker who credited interest or dividends to a foreign account
- A university that grants a scholarship to an international student
- Real-estate partnership that distributes profit to a foreign partner
Deadlines for Filing 1042-S For 2025TY (To be Filed in 2026)
| Filing Type | 1042-S Filing Deadline | 1042-S Filing Deadline For 2025 TY |
|---|---|---|
| Recipient Copy Distribution | March 15 | March 16, 2025 |
| Paper Filing & E-Filing | March 15 | March 16, 2026 |
| Extension of time to file (30-days) | April 15 | – |
Note:If Form 1042-S due date in on a weekend or a holiday, the deadline will move to the next working day.
Why the March 15, 1042-S Deadline Matters (March 16 for ‘25TY)
Form 1042-S due date is on March 15. If it is not filed by this due date, it can trigger late IRS 1042-S penalties. It’s important to remain compliant with IRS requirements and file before the deadline.
Late filings affect the payer’s tax return. A foreign person will need 1042-S to file their own tax returns and if there is a delay in filing 1042-S, their tax refund may be delayed. It also leads to extra scrutiny from the IRS and possible audits.
Form 1042-S Penalties Explained
| Timeline | Penalty Per Form | Maximum Penalty |
|---|---|---|
| If up to 30 days late | $60 | $683,000 per year ($239,000 for a small business) |
| After 30 days | $130 | $2,049,000 per year ($683,000 for a small business) |
| After August 1 | $340 | $4,098,500 per year ($1,366,000 for a small business) |
| Intentional Disregard | $680 or 10% of the total amount to be reported | No maximum limit |
| Failure to furnish copy to recipient | Up to $340 per recipient | $4,098,500 ($1,366,000 small biz) |
Need More Time? Extend 1042-S Deadline with Extension Form
If you cannot file by the March 15 tax form deadline, you can request an automatic 30-day 1042-S extension using Form 8809, no later then the original due date.
You can also request for a second extension by submitting another Form 8809 before the 30-day period is up.
How To Extend 1042-S Recipient Copy Distribution Deadline?
In cases where you are unable to provide a copy to 1042-S to recipients, you can delay recipient copy distribution by using Form 15397. You need to file this form no later than the original due date, March 15. This delays the deadline for recipient copy distribution by 30 days.
Special 1042-S Rule for Partnerships
Form 1042-S has a deadline of March 15. But for partnerships that withhold tax on distributions to foreign partners, they are allowed extra time, till September 15, if distributions were made after March 15. This rule was implemented to give partnerships more time to align with Schedule K-1.
To qualify for this extended deadline, the partnership must mark Box 7c, Withholding Foreign Partnership, on 1042-S. Missing the partnership 1042-S September 15 date can lead to IRS penalties and audits.
Checklist for 1042-S Filers
- Collect W-8s from foreign persons to check their foreign status and claim any applicable tax treaty benefits or exemptions for U.S.-source income.
- Verify recipient’s name and SSN or business name and EIN against IRS records with 1099Online’s TIN Matching feature.
- Form 1042-S uses specific codes. Pick the right code for payment type. For example, use Code 36 for capital gains distributions.
- If income paid to the foreign person was withheld, at rates determined by statute or treaty, report the amount paid and withheld on 1042-S.
- Keep a record of all the payments and taxes withheld made to foreign persons and total them to report on 1042-S.
- Before submitting the form, run a last-minute check for incorrect IDs or missing information.
Real-Life Examples For Filing Form 1042-S
- If you make a payment subject to withholding on March 15, 2026, you can still file 1042-S on time since IRS deadline to file and furnish Form 1042-S is March 16, 2026 (since March 15 falls on a weekend in 2026).
- If you filed Form 8809 by March 10, 2026, you automatically get 30 extension to file the IRS copy of the form (not the recipient copy).
- If a partnership withholds tax on a payment to a foreign partner on April 1, 2026, which is after the deadline, they can still file 1042-S without fear of penalties as long as it checks Box 7c (special partnership rule).
- If 1042-S was filed on April 20 without any request for an extension, you’ll be subjected to a penalty of $130 per form, since it’ll be considered a late filing.
- If you forget to file Form 1042-S and did not file for any extension, it’ll be treated as intentional disregard. You will have to pay a penalty of $680 per form or 10% of the total amount that should have been reported with no maximum cap.
FAQs
1. Does the 30-day extension help with 1042-S recipient copies?
For extending the recipient copy deadline of Form 1042-S, instead of Form 8809, use Form 15397 (Application for Extension of Time to Furnish Recipient Statements). This extension is not automatic and requires IRS approval.
2. When is 1042-S e-filing required?
E-filing is required is the payer or withholding agent (for Form 1042-S) files 10 or more informational returns.
3. What if the March 15, 1042-S Deadline Is On a Holiday?
If the March 15, 1042-S deadline is on a holiday, the next working day will be considered the due date for that year. For example, if you are filing for 2025 TY, the due date of March 15, 2026 falls on a Sunday so the due date moves to March 16, 2026.
4. Can a filed 1042-S be fixed or corrected?
Yes, you can correct a previously filed 1042-S form by retransmitting a “CORRECTED” 1042-S form within 30 days.
5. Do Form 1042 and 1042-S share the same due date?
Yes, both Form 1042-S and 1042 share the same due date, March 15 (or the next business day if March 15 is a weekend or holiday).