Understanding Form 1042-S Filing Requirements and the April 16 Extended Due Date

If you’re a U.S.-based business, institution, or individual making payments to foreign persons—like nonresident aliens, foreign corporations, or foreign trusts—you’re likely familiar with IRS Form 1042-S. This critical tax form ensures that income paid to foreign recipients, along with any tax withheld, is properly reported to the IRS. Whether it’s wages, scholarships, royalties, or dividends, Form 1042-S plays a key role in maintaining compliance with U.S. tax laws. This article will summarize some key filing requirements for this form and, if you filed an extension, serve as a reminder of the extended due date.

What is Form 1042-S, and Who Needs to File It?

Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding is an information return used to report U.S.-sourced income paid to foreign persons (both individuals and entities). Even if this income is not subject to withholding due to a treaty or exemption, the income must still be reported on Form 1042-S. A critically important fact in regard to this form is that the withholding and reporting is the responsibility of the U.S. person (individual, corporation, partnership, etc.) who controls, receives, or pays U.S.-sourced income to a foreign person. For example, if you’re an employer paying a nonresident alien worker, or a university disbursing a scholarship to an international student, you are considered a withholding agent and are required to file Form 1042-S.

The form captures details such as the recipient’s name, address, country of residence, income type (via specific income codes), amount paid, and tax withheld (if any). A copy must be filed with the IRS and another provided to the recipient, ensuring transparency on both ends.

Standard Filing Deadline and Electronic Requirements

Typically, Form 1042-S is due on March 15^th of the year following the year of payment (e.g., a payment in June of 2023 would be reported by March 15 of 2024). For the 2024 tax year, this date was actually March 17, 2025, as the 15^th fell on a weekend.

Prior to 2024, the requirement for foreign reporting electronically was 250 returns. For the 2024 reporting year, the threshold was reduced to just 10 returns. This means if you’re filing 10 or more information returns of any type (such as 1099-S or 1042-S), you must submit Form 1042-S electronically via the IRS’s Filing Information Returns Electronically (FIRE) system. Paper filings are still an option for fewer than 10 returns, but with this change, most withholding agents will need to adapt to e-filing.

The Extended Due Date: April 16, 2025

If you filed a 30-day extension by filing Form 8809 Application for Extension of Time to File Information Returns on or before the original due date (March 17, 2025), the due date for filing is Wednesday, April 16. Notably, like most filing and tax remittances, the extension applies only to filing—not to paying any tax owed. So, you should have deposited the withholding amounts by now. If you still are not able to file your Form 1042-S, a second Form 8809 can be filed before April 16 for additional time. However, this is not an automatic extension, it must be approved.

Why This Matters

Filing Form 1042-S accurately and on time is critical to avoid penalties. Such penalties can range from $310 per late form to $630. If the delay is intentional, there is no cap. If, for some reason, you have not filed your Forms 1042-S, we encourage you to file them as quickly as possible.

Please contact our Global Business Services team with questions regarding these regulations or any other international tax issue.