What’s new with 2017 Form 1042-S

Your Guide to State, Local, Federal, Estate + International Taxation

Form 1042-S, tax, international tax, income tax, foreign taxAnother year means more updates to Form 1042-S as the IRS attempts to have these forms work more efficiently and adapt to the ever changing tax laws. Here is what’s new for 2017:

  • Unique form identifier: Each 1042-S form will now need to have a unique form identifier. This is different than a U.S. or foreign tax ID number and is a ten digit number chosen by the withholding agent. This will be helpful if multiple 1042-S forms are filed for the same recipient and one or more of the forms are amended. The amended form would use the same unique form identifier as the original filed form so that it would be easier to distinguish which form is being amended.
  • Amended forms: Amended forms now have a box at the top of Form 1042-S to indicate the amendment number. This will be useful if a form is amended multiple times.
  • Pro-rata box: This has moved from the top to new box 15.
  • Qualified derivatives dealers (QDDs): See 2017 instructions for new codes.
  • Updated codes: Be sure to use the updated income, exemption, and foreign country codes as indicated in the 2017 instructions.
  • Foreign taxpayer identification number and date of birth: A financial institution filing a 1042-S for a payment on an obligation that it maintains at its U.S. office or branch must report the foreign tax ID number and date of birth in boxes 13i and 13l.
  • Amount paid to recipient: The instructions now clarify that amounts repaid on over withheld tax to a recipient, under the set-off procedure, should be reported in Box 11 if the repayment is made in the year following the calendar year of withholding.

Be sure to contact a qualified tax professional for assistance with Form 1042-S. This information is general in nature and should not be relied upon.

Jill A. Helm, CPA