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...

Federal judge tosses IRS lawsuitsBernie Becker of The Hill reported that a federal judge sided with the IRS on Thursday, tossing out two lawsuits filed against the tax agency over its improper scrutiny of Tea Party groups...
Amidst the dark clouds hovering over the IRS this year—ranging from the lingering Tea Party scandal to other improprieties to damaging budget cuts—at least there's a ray of sunshine in a new report from the...
SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.