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1042-S Express \ Forms \ 1042-S
Updated: 07/20/2022 02:58 PM
Contacting the IRS, IRS Addresses and Deadlines
Tax Law Questions regarding U.S. source income to foreign persons under Chapter 3 of the IRS Code:
IRS Web Site for Electronic filing: http://fire.irs.gov
Deadlines:
For more information on deadlines, get the 1042-S Instructions.
Multiple Files to One IRS File
1042 Express can combine multiple original source files into a single IRS compatible file, even if the source files are from different withholding agents (filers/companies). Correction, or replacement files cannot be combined, but must be separate files.
Source files may reside in any folder or multiple folders. Typically, source files are found in the c:\T2022 folder, but may be in any folder.
To build multiple files into a single IRS file, click the Options/Build IRS File/Multiple Files menu. Navigate to the file (select the correct drive, folder, and file) then double-click the file to add it to the lower list box. Files in the lower list box appear red in color. When all desired files are in the list box, click the "OK". The multiple build will start.
Only ONE Transmitter is allowed for a multiple build, regardless of how many source files are combined and regardless of how many Companies (Filers) are present. The FIRST source file (in the lower list box) must have the complete Transmitter Information. Only the Transmitter Information from the first file is sent to the IRS. The Transmitter Information in other files is ignored and need not be present. All source files must have complete Withholding Agent Information.
A file called CFR.TXT (Computer Filing Report) is present in the folder where the last file resides and is also displayed in Notepad. Please print or save the CFR information, since it contains important tracking information and other details about the file you are sending to the IRS file.
Also see Electronic Filing
Control Totals and Rounding in 1042-S
To show all totals in 1042-S Express, click on the Options Menu then "Total all Records". A totals page will appear.
Unlike 1099 Series Forms, the IRS has special rules for rounding money amounts for form 1042-S. This is strange and inconsistent with other forms, which keep and total pennies in all dollar amounts.
1042-Express software performs all rounding automatically. There is nothing you need to do. Most people pay money with dollars and cents. All 1099s and W-2 forms preserve dollars and cents. Most data available to you will have dollars and pennies. You will import into 1042-S with dollars and pennies. Again, you DO NOT HAVE to REMOVE the cents, or perform extra work.
However, the IRS forces us to store money internally by removing the pennies and rounding the results up or down (see below).
For this reason, the totals will not reconcile exactly to your totals outside the program. For example, 1042-S totals will not reconcile to your Excel totals, unless all the amounts in Excel were rounded before importing. If you wanted totals to reconcile, you could round dollar amounts easily with the Excel Round function. The following is the part of the language from IRS Publication 1187 about money amounts:
Page 32, Publication 1187
.07 Report income and tax....... in whole dollars only. Round up or down as appropriate. To round off amounts to the nearest whole dollar, drop amounts under 50 cents and increase to the next whole dollar amounts of 50 to 99 cents. If you have to add two or more amounts to figure the amount to be reported, include cents when adding and only round off the total figure to be reported. DO NOT enter cents. Again, this is all done automatically in software, you do not have to do this work. This is just a reminder about matching totals.
Restricted Users under Windows
Any of the following errors indicate a restricted user: INI Reset Err, I/O Error, Access Violation, INI Rewrite Err, Can't Save INI file.
To protect you from computer viruses or other dangers, it appears that you can't activate programs without the administrator's permission, thus you may be a restricted user. Please print this page for your administrator.
To run 1099 Express on Windows, under a restricted user's login (non-administrator), please do the following:
1. Log off as the restricted user. The administrator must log on.
2. The Setup program must be downloaded and re-installed by the administrator. It is not necessary to uninstall the application. The administrator can install again over the previous install. The setup program for the current tax year can be found at www.1099Express.com then click on Downloads.
3. The administrator must give the program folder "Full Control" permission so the program can write information inside that folder. The program must be able to write initialization files and create user settings inside that folder. The program folder is where the actual W2.exe executable program file resides. The program folder is on the C drive in the root folder, not under Program Files.
The program folder is: c:E20xx for 1099 Express, c:W20xx for W-2 Express, and c:T20xx for 1042-S Express, where is xx is the last 2 digits of the tax year. For example, the program folder for 1099 Express for 2022 is c:E2022. A new program folder is created each year by the setup program.
Under Windows XP Professional: Click on My Computer, then navigate to the C drive, find W2009 (a yellow folder under the root C drive, not Program Files). Right click on the W2009 folder. Select Properties then click the Security Tab. Select USERS, then set Permissions for Users to "Full Control".
Under other Windows Operating Systems, such as NT, Vista, 2000, etc., the procedure may be slightly different. On some older versions of Windows, the administrator may also need to give the program folder the highest "sharing rights".
4. The W2.exe program must next be Activated by the administrator. The administrator must run the program. The administrator must then click the ACTIVATE button (or click the Help/Register Menu inside the program), then select automatic activation, then enter the Invoice Number from the purchase receipt. Automatic activation requires an internet connection. If automatic activation fails, call technical support at 361 884-1500. We can then use manual activation. The administrator must then close 1099 Express and all other programs.
5. Log Off as administrator and log back on as the "Restricted" user. Run 1099 Express from that user. There should be no error messages when the program starts. Then click on Help/Register. The program should say "Activated". Then exit the program. There should be no error messages when the program closes and saves information.
Warning
Be careful paying foreign persons! The IRS wants 30% of most payments you make now, up front. If you don't withhold and pay the IRS, you may be personally liable for the payment, plus penalty and interest.
Quotes from IRS Publication 515:
You are a withholding agent if you are a person that has control, receipt, custody, disposal, or payment of income of a foreign person that is subject to withholding.
As a withholding agent, you are personally liable for any tax required to be withheld. If you fail to withhold, and the foreign payee fails to satisfy its U. S. Tax liability, then both you and the foreign person are liable for tax, as well as any interest and applicable penalties. If the foreign person satisfies its U.S. tax liability, you may still be held liable for interest and penalties for your failure to withhold.
For example, if you purchase US real estate from a foreign person and fail to withhold and pay part of the sale price to the IRS, you may be held liable for the tax (Pub 515, page 33, US Real Property). Read Publication 515 now.
Publication 515 and related regulations are very complicated and confusing. We do not and cannot provide any tax advice on these regulations. We are never responsible for any tax liabilities or obligations you may incur, regardless or the reason, or who caused the liability to occur. Please consult your tax advisor or the IRS about all aspects of payments to foreign persons, including Publication 515, IRS forms W-9, W-8, Form 1042-S and all related subjects.
Overview and Quick Start for 1042-S forms
Obtaining a TCC for e-Filing to the IRS over the internet
Combining Multiple files to the IRS
Filing Corrected (Amended) Returns
Contacting the IRS - DEADLINES
Restricted User and Activation Errors under Windows
New 2017 changes and new method for amended returns
1042-S Changes for 2016 for Excel Headers
Important FATCA compliance information about 1042-S for 2014
New Data Entry Screen starting in 2014
New 1042-S Program Features for 2014
Warning about payments made to foreign persons.
Instructions for IRS Form 1042-S, Foreign Person's US Income...
IRS Publication 515 Withholding of Tax on Foreign Persons or Entities
Form 1042 Annual Withholding Tax Return
IRS Web site: Withholding 30% from payments leaving the USA.
IR Bulletin 2004-59 Voluntary Compliance Program for 1042-S Reporting Ended early 2006
IRS Form 1042-S, Foreign Person's US Source Income Subject to Withholding
1042-S Express Source Format for the "T" Transmitter Record
1042-S Express Source Format for the "A" Withholding Agent Record
1042-S Express Source Format for the "B" Foreign Recipient Record
