1042 Outsourcing (Tax Year 2024)
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Outsource
$599.95
- We have an account setup with the Modernized Electronic Filing (MeF) program. We have a valid and active Electronic Filing Number (EFIN) and Electronic Transmitter Identification Number (ETIN) set for production.
- We assign a real person to review your data.
- No TCC required. No IDme. No finger print.
- We work quickly and have experienced staff who can provide complete, secure outsourcing solutions.
- Custom quotes tailored specifically to your needs. We are committed to providing you with exceptional service and competitive pricing.
IRS Form 1042
IRS Form 1042 is a tax return that shows the weekly and monthly breakdown of how much was withheld from US source income by a withholding agent. Form 1042 is filed
through the Modernized e-File (MeF) program. Guidance on how to prepare the XML files for electronic submission are provided in IRS Publications 4164 and 4165.
IRS Form 1042-S (which is different from Form 1042) is an information return which reports how much was withheld for each payee in a particular tax year.
Form 1042-S is filed through the FIRE (File Information Returns Electronically) System. Guidance on how to prepare the notepad file to transmit electronically
is provided in IRS Publication 1187.
Form 1042 needs to be transmitted electronically to the IRS. The registration process to gain access to MeF is challenging, can take months to complete and requires
fingerprinting by the transmitter. We can electronically transmit Form 1042 to the IRS on your behalf.
Type in information on a fillable PDF (or fill out neatly with a pen) and we will re-type your information into our Form 1042 software. We will send you a copy of
the transcribed PDF to review. We will create and validate the XML (manifest, SOAP and submission) and let you know of any errors before transmitting. Once approved
by you, we will transmit electronically on your behalf and provide a copy of the IRS receipt. Electronically file original or amended files for current or prior
years directly to the IRS.
IRS Approved 1042 Modernized e-File (MeF) Provider...
1099FIRE completed the IRS Assurance Testing System (ATS) requirements for software developers of electronic withholding tax (1042 MeF) returns. We are an IRS approved
vendor for Form 1042. The current list is shown here:
1042 Modernized e-File (MeF) providers
Electronic Filing Mandate...
Form 1042 electronic filing is required for a withholding agent that is a financial institution, a partnership with more than 100 partners, and for withholding agents that are filing 10 or more information returns for the calendar year.
Difference between Form 1042 and Form 1042-S......
IRS Forms 1042 and 1042-S are filed separately. Both forms are filed by the withholding agent.
Form 1042-S is an information return. It is provided to the foreign person who receive income subject to withholding, such as wages, scholarships, or dividends,
from a US withholding agent. Form 1042-S reports the amount of income paid to the foreign person, any applicable withholding tax, and any treaty benefits claimed
by the recipient.
Form 1042 is a tax return which reports a withholding agents tax liability for a given tax year. Form 1042 requires an authorized taxpayer representative to sign
Form 1042 and assume responsiblity for the accuracy and completeness of the information reported on the form.
Due Date...
Form 1042 is typically filed annually with the IRS by March 15th of the following calendar year, along with Form 1042-S, which is used to report income paid to foreign persons. It helps the IRS track and enforce tax withholding requirements on income paid to foreign individuals and entities to ensure compliance with U.S. tax laws.
