Tax & Accounting Blog

Information Reporting on Form 1042-S: A New Challenge for Accounts Payable

Information Reporting on Form 1042-S: A New Challenge for Accounts Payable

Reporting income and taxes withheld on payments made to corporate vendors recently became more challenging for accounts payable (A/P) departments of both for-profit and not-for-profit organizations with the new IRS compliance focus on payments to nonresident alien individuals, foreign entities and foreign governments (collectively, foreign persons). A/P departments familiar with the ins and outs of Form … Read More

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 4: Penalty for Late Forms 1042-S for the Recipient

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 4: Penalty for Late Forms 1042-S for the Recipient

If a withholding agent fails to provide correct Forms 1042-S to recipients when due and cannot show reasonable cause, the withholding agent may be subject to a penalty for each failure. The IRS may also impose the penalty for failure to include all required information or for furnishing incorrect information on Form 1042-S. The penalty is … Read More