New Deadline for IRS Form 1042-S Approaches

Earlier this spring The Internal Revenue Service announced that for this year only it is extending the due date of Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, from March 15 to May 15. All forms 1042-S formerly due on March 15, 2002 are due May 15, 2002. Late filers face potential penalties.

The decision to offer the automatic extension is due to the fact that Form 1042-S changed significantly this year over prior years and some taxpayers may have experienced difficulty implementing the new reporting requirements including the filing of information returns to report certain payments to nonresident aliens.

Significant penalties face taxpayers who miss the May 15 deadline, including:

  • $15 per form filed correctly and no more than 30 days late
  • $30 per form filed correctly and filed more than 30 days late but within 4 1/2 months of the due date
  • $50 per form filed incorrectly or filed more than 4 1/2 months after the due date
  • $50 per form not supplied to the recipient when due
  • the greater of $100 per form or 10% of the total amount of items required to be reported if filing of the forms is intentionally disregarded.

You may like these other stories...

There it stands, your client's 100-year-old, rickety, vermin-infested barn or former hotel or whatever the darn thing once was. And she's considering what to do with it. There are two words that can help her decide...
It's not a reality—yet—but accounting software is poised to eliminate accountants. We are at a tipping point for many similar professions: online education replacing professors, legal software replacing...
Did you know that the tax code allows you to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes, and others kinds of casualties? But the law imposes several restrictions.Relief...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.