Form 1042/1042-S Reporting (Currently Unavailable)

Author: Steven D. Mercatante

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 2021

Topics Covered

• How to distinguish payments to US and Non-US Persons
• Ways to handle payee request for treaty benefits
• Key elements of the troublesome IRS source-income rule
• Updates on 1042/1042-S reporting regulations
• IRS form updates: How recent laws have changed W-8/1042-S
• How to fulfill reporting obligations via Form 1042, 1042-S
• Avoiding Problematic Reporting & Withholding Issues: How to Ensure Error Free Filing
• Making payments to US & Non-US Persons: Keys to getting it right
• Ways to pin-point the key elements of the IRS source-income rule
• Essential Checklist for Your 1042-S Filing. What to Know Before You Report
• Additional documentation issues of Foreign Status and Treaty Claims
• How to identify troublesome IRS source-income rule
• Ways to break down W-8/1042/1042-S payee & payment reporting situations
• Avoiding penalties: Best practices for best results

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
• Describe the TIN for a payee that is a resident alien
• Identify when you are required to use Form W-9
• Describe which payee entity you should check if the W-8BEN-E currently lists over 30 FATCA classifications
• Identify what applies if you do not have the payee's TIN

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None