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.