Form 1042/1042-S Reporting (Currently Unavailable)
Author: Steven D. Mercatante
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Recent changes in the law have made IRS Form 1042/1042-S filing requirements ever more complex. The cost to your organization can be significant if it's not ready. This course is a time saving tool that will help CPA’s, tax, and accounts payable professionals get ready to file Forms 1042/1042-S.
In this course, industry expert and corporate tax attorney Steven D. Mercatante Esq. takes a look some of the more common problems related to documenting, validating, and reporting payee information using the IRS Forms 1042/1042-S while offering solutions and best-practices for addressing related reporting issues.
Ongoing IRS audits and recent changes in the law related to payments made to Non-US Persons means that the cost to your organization can be significant if it is not ready to accurately file Forms 1042/1042-S under Federal law. Start preparing for filing and reporting season now.
Publication Date: November 2020
Topics Covered
- The W”9
- W”9/W”8 Data Collection & Validation
- W”9/W”8 Data Collection & Validation Can Flow Together ” Presumptions
- W”9/W”8 Payee/Payment In Practice
- Who is My Payee Non”U.S. Status Red Flags
- Who is My Payee — U.S. or Non”U.S.?
- Who is My Payee — Resident Alien Visas
- Who is My Payee — Resident Aliens and Counting Days
- Who is My Payee — Special Entity Rules
- Who is My Payee — W”9 vs. W”9 Basic Rules
- 1042”S Reportable Income: Purchase Invoices
- W”8 Payment Sourcing
- W”8's & Treaty Benefits
- Wrap Up of General W”8 Validation Tips
- Filing Form 1042/1042”S
- Filing Fundamentals
- Filing Fundamentals — Recent Changes to Form 1042”S Information Returns
- Filing Fundamentals — Form 1042”S Information Returns
- File on Time and Try to Avoid Those Penalties
- Protect Yourself
Learning Objectives
- Discover tips for handling the changes to the new Forms 1042/1042-S, incorporating them into your systems, and filing accurately
- Identify best practices for validating the W-9, W-8's, and 8233 and avoiding reporting and withholding errors
- Distinguish between services compensated and why they matter, discover whether the service constitutes employment under immigration law, how where the service performed impacts your reporting obligations, what distinguishes a resident for tax purposes from immigration purposes, and learn the tax treatment of different visa's
- Recognize what types of payments are 1042-S reportable and the rules for each, including scholarships and fellowships, honoraria, payments to artists and athletes, partnerships, royalty payments, independent/dependent personal services, as well as related elements of the IRS source/income rule
- Identify how to handle W-8 payee requests for treaty benefits, reduced 1042-S withholding, and reporting
- Recognize elements requiring you to doubt the information on Forms W-9, W-8, or Form 8233 and get tips for handling Form 1099 vs. 1042-S expat earnings, tax equalization, and foreign income exclusions vs. resident/non-resident alien reporting
- Recognize and apply detailed filing tips for the Form 1042-S codes and boxes
- Identify recent changes related to Form 1042-S
- Identify the estimated tax gap per year
- Differentiate W-8 forms and how they apply
- Recognize a red flag for non-U.s. payees
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
