Does everyone who files a 1042-S have to file a 1042 as well?

Yes, anyone who is required to file a 1042-S form generally also needs to file Form 1042. Here’s how they work together:

1. Form 1042-S: This form reports specific income paid to foreign persons that is subject to U.S. withholding tax. Each type of income, recipient, and withholding rate requires a separate 1042-S form.
2. Form 1042: This is the annual summary and transmittal form that summarizes all payments reported on individual 1042-S forms, including total amounts of U.S.-source income paid to foreign persons, withholding amounts, and any deposits made for those withholdings.

Why Both Forms Are Necessary

Form 1042 essentially provides the IRS with an overall report on all U.S.-source income paid and withheld for the year, while the 1042-S form details each individual payment made to each foreign payee.

So, if you file any 1042-S forms, the IRS expects a Form 1042 as well to account for the total payments and taxes withheld.