Where and How to Fax Form 1042-S to IRS

fax 1042-s to irs

In most cases, income received by non-citizens from U.S. sources is subject to U.S. tax. Any withholding agent (a person or institution, such as an employer, university, or business) that paid any amount subject to a foreign person must submit a Form 1042-S. Form 1042-S is filed with the IRS and a completed copy is also sent to the employee or business.

What is Form 1042-S and What is It Used for?

Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is used to report amounts paid to foreign persons (including those presumed to be foreign) by a United States-based institution or business. This applies to non-resident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts that are subject to income tax withholding.

You can use Form 1042-S to report:

  1. Instructions for Form 1042-S such as Income and amounts withheld.
  2. Specified Federal procurement payments paid to foreign persons that are subject to withholding under section 5000C.
  3. Distributions of effectively connected income by a publicly traded partnership or nominee.

How to Complete Form 1042-S?

Form 1042-S contains so many blanks to be completed that it’s chaotic to figure out how to complete it correctly. The following provides all the filling tips for each blank. The blanks that are required to be completed on Form 1042-S include:

Box 1. Income Code – This two-digit income code identifies the appropriate income source:

  • Other Royalties (i.e. copyright, recording, publishing)
  • Scholarship or Fellowship Grants
  • Compensation for Independent Personal Services
  • Pay for Individuals whose immigration purpose is Teaching and/or Research
  • Pay for Individuals whose immigration purpose is Studying and Training
  • Other Income

Box 2. Gross Income – Entire Amount of the Payment

Box 3. Chapter 3 – If checked, amounts were reported under chapter 3 of the IRS Code

Box 3a. Exemption Code – Reason for the Exemption Code.

  • Exempt under IRS Code
  • Exempt under Tax Treaty

Box 3b. Tax Rate – Withholding rate based on the type of Income

Box 4. Chapter 4 – If checked, amounts were reported under chapter 4 of the IRS Code

Box 4a. Exemption Code – Reason for the Exemption Code

  • Effectively connected income
  • Payee not subject to chapter 4 withholding

Box 5. Withholding Allowance – Personal exemption amount, if applicable

Box 6. Net Income – Generally left blank, unless Box 5 is used.

Box 7. US Federal tax withheld – The total dollar amount of federal income tax withheld

Box 9. Total withholding credit – not applicable to W&M

Box 10. Amount repaid to the recipient – not applicable to W&M

Box 14. Recipient’s U.S. TIN, if any – U.S. taxpayer identification number

Box 16. Country code – The country of which the recipient claims residency under that country’s tax laws.

Box 23. State income tax withheld – State income tax withheld from payments.

How to Fax Form 1042-S to IRS?

To fax Form 1042-S to IRS, two options are available, fax from a smartphone or from a fax machine.

Fax Form 1042-S from a Phone

The Fax app allows its users to send and receive a fax at any time and place.

Step 1. Download and install the FAX app on your device, smartphone, or tablet and purchase a fax plan based on your needs.

Step 2. Fill in Form 1042-S and scan it via the webcam on your device or directly attach your Form 1042-S from a third-party platform.

Step 3. Select a cover sheet and sign, edit, preview the fax document to be sent, and click the button “Send” to complete faxing.

Fax Form 1042-S from a Fax Machine

The traditional method of sending fax through fax machines is more complex than the above method.

If you have a fax machine

Step 1. Find a print shop or buy your own printer to print form 1042-S and fill in the Form 1042-S correctly and eligible.

Step 2. Before sending a fax, first, check whether the fax machine is powered on and whether there is enough fax paper in the fax machine.

Step 3. Open the upper cover of the fax machine and lay the text of the document to be transmitted face down at the input port.

Step 4. Pick up the phone, call the fax destination, and ask the other party to give a “permission signal”.

Step 5. Press the “Send” button to finish your fax to IRS.

If you do not have a fax machine

Step 1. Find a print shop or buy your own printer to print form 1042-S and fill in the Form 1042-S correctly and eligible.

Step 2. Look for public fax machines, which may exist in convenience stores, bookstores, copy shops, photo studios, banks, and other places.

Step 3. Find the staff member and tell him what to fax and the target fax number. If your fax involves privacy, you need to pay attention to whether your privacy has been leaked.

Step 4. Pay for fax based on page count (it may not be cheap).

Traditional Fax vs. Online Fax

Traditional fax needs to be sent on the fax machine. If you don’t have a machine around you, you need to spend a lot of time finding a public one. Or you can buy a fax machine yourself, but it will be very expensive. Sending a fax through a fax machine takes a lot of time and the cost is higher than online fax. With the progress of equipment, its clarity is no longer an advantage, too.

Online fax refers to sending a fax on a mobile phone. You don’t need to stay next to the fax machine. All you need is a mobile phone with you. It is cheap, convenient, and fast. It can be sent anytime and anywhere. So, it is a better choice for sending faxes.

Bottom Line

  • Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is used to report amounts paid to foreign persons.
  • Online fax refers to sending a fax on a mobile phone. It is cheap, convenient, and fast. It can be sent anytime and anywhere. So, it is a better choice for sending faxes.

Related Forms to Fax to IRS

Form SS-4

Form 2553

Form 2848

Form 1040

Form 4506 T

Form 637

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