IRS Form 1042-T – Annual Summary and Transmittal of Forms 1042-S

IRS Form 1042-T – In the complex world of U.S. tax withholding on payments to foreign persons, IRS Form 1042-T plays a crucial role as the transmittal document for paper-filed Forms 1042-S. Whether you’re a withholding agent, a qualified intermediary, or managing international payments, understanding Form 1042-T is essential to ensure compliance and avoid penalties. This SEO-optimized guide covers everything you need to know about IRS Form 1042-T, including its purpose, filing requirements, and step-by-step instructions. For the official form, download the PDF here: https://www.irs.gov/pub/irs-pdf/f1042t.pdf.

What Is IRS Form 1042-T?

IRS Form 1042-T, officially titled “Annual Summary and Transmittal of Forms 1042-S,” is used exclusively to transmit paper copies of Form 1042-S to the Internal Revenue Service (IRS). Form 1042-S reports U.S.-sourced income paid to foreign persons that is subject to withholding under Chapters 3 or 4 of the Internal Revenue Code. Unlike Form 1042, which is the annual withholding tax return, Form 1042-T acts as a cover sheet or summary for batches of paper-filed 1042-S forms.

Key highlights from the form include:

  • Summarizing total gross income and federal tax withheld from the attached Forms 1042-S.
  • Specifying whether the forms relate to Chapter 3 (traditional withholding on foreign persons) or Chapter 4 (FATCA-related withholding).
  • Indicating if the filing is original, amended, pro-rata, or for specific scenarios like partnerships or qualified intermediaries.

This form ensures the IRS can efficiently process and reconcile paper submissions of income withholding data for non-U.S. recipients. It’s particularly relevant for entities dealing with foreign vendors, contractors, or investors.

Who Needs to File IRS Form 1042-T?

You must file Form 1042-T if you are a withholding agent submitting paper Forms 1042-S. Withholding agents include U.S. persons, foreign intermediaries, qualified intermediaries (QIs), withholding foreign partnerships (WPs), or withholding foreign trusts (WTs) who withhold tax on U.S.-sourced income paid to foreign persons.

Specific scenarios requiring filing:

  • If you’re transmitting original or amended paper Forms 1042-S under Chapter 3 or 4.
  • Partnerships reporting withholding that occurred in a subsequent year for prior-year undistributed income (check box 1e on the form).
  • QIs, WPs, or WTs revising reporting on Form 1042-S to a specific recipient as per their agreements with the IRS (check box 1f).

Note: Do not use Form 1042-T for electronically filed Forms 1042-S—those are submitted directly via the IRS’s Filing Information Returns Electronically (FIRE) system or Modernized e-File (MeF). If you’re required to file Form 1042 (the withholding return), filing Form 1042-T does not replace that obligation.

When and Where to File IRS Form 1042-T?

The due date for Form 1042-T, along with the attached Forms 1042-S, is March 15 of the year following the calendar year in which the income was paid (e.g., March 15, 2026, for the 2025 tax year). If March 15 falls on a weekend or holiday, the next business day applies.

  • Extension: Use Form 7004 to request an automatic extension for filing, but this does not extend the time to pay any tax due.
  • Where to File: Mail the form and attachments to the Ogden Service Center, P.O. Box 409101, Ogden, UT 84409. Send in a flat mailing (do not fold or staple).

For the 2025 tax year, electronic filing of Form 1042 is required for certain entities (e.g., financial institutions or those filing 10 or more information returns), but Form 1042-T remains paper-only for transmittal purposes. Foreign withholding agents have an administrative exemption from electronic filing of Form 1042 until calendar year 2025.

How to Fill Out IRS Form 1042-T: Step-by-Step Instructions?

Filling out Form 1042-T is straightforward but requires accuracy to match your Forms 1042-S. Here’s a breakdown based on the 2025 form:

  1. Withholding Agent Information: Enter your name, address, employer identification number (EIN), and Chapter 3/4 status codes. This must match your Form 1042 and attached 1042-S forms.
  2. Line 1a: Select Chapter 4 or Chapter 3 (enter “4” or “3”). All attached forms must align with this choice.
  3. Line 1b: Check “Original” or “Amended.”
  4. Line 1c: Check if pro-rata (proportional withholding).
  5. Line 1d: Enter the number of attached paper Forms 1042-S.
  6. Line 1e: Check for partnerships reporting subsequent-year withholding (ensure box 7c on attached 1042-S is checked).
  7. Line 1f: Check if revising reporting as a QI, WP, or WT.
  8. Line 2: Total gross income from box 2 of all attached Forms 1042-S.
  9. Line 3: Total federal tax withheld (split by Chapter 4 on 3a or Chapter 3 on 3b, based on Line 1a).
  10. Final Return: Check if this is your final submission for the year (no more forms expected).
  11. Signature: Sign under penalties of perjury, including title, date, and phone number.

Use a separate Form 1042-T for each type of 1042-S (e.g., one for originals under Chapter 3, another for amended under Chapter 4). If changes affect your previously filed Form 1042, amend that form as well.

While Form 1042-T is for paper transmittals, electronic filing is increasingly mandatory:

  • Forms 1042-S must be e-filed if you’re required to file 10 or more information returns in a year.
  • Form 1042 electronic filing starts for tax year 2023 (filed in 2024) for certain filers, with exemptions for foreign persons until 2025.

For deposits, use the Electronic Federal Tax Payment System (EFTPS) to avoid a 10% penalty.

Penalties for Non-Compliance with Form 1042-T

Failing to file or filing late can result in significant penalties:

  • Late filing: 5% of unpaid tax per month, up to 25%.
  • Late payment: 0.5% per month, up to 25%.
  • Interest on unpaid taxes and penalties.
  • Additional penalties for negligence or fraud under sections 6662 and 6663.

The IRS emphasizes timely deposits and accurate reporting to avoid these costs.

  • Form 1042: Annual withholding tax return for U.S. source income of foreign persons. File if you withheld tax or are required to report under Chapters 3 or 4.
  • Form 1042-S: Reports specific payments to foreign persons. Must be furnished to recipients by March 15 and filed with the IRS.

For more details, refer to Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Frequently Asked Questions About IRS Form 1042-T

What if I e-file Forms 1042-S?

You don’t need Form 1042-T; electronic submissions are transmitted directly.

Can I file multiple types of 1042-S on one Form 1042-T?

No—use a separate Form 1042-T for each type (e.g., Chapter 3 originals vs. Chapter 4 amended).

What are Chapter 3 and Chapter 4 status codes?

These codes indicate your withholding status; refer to the Instructions for Form 1042 for the full list.

Is there an update for the 2025 tax year?

The 2025 form includes no major changes from prior years, but always check IRS.gov for the latest.

Conclusion

Mastering IRS Form 1042-T is key for compliant handling of foreign withholding taxes. By following these guidelines and using official IRS resources, you can avoid common pitfalls and ensure smooth filings. For personalized advice, consult a tax professional. Stay updated via IRS.gov, and remember to file by March 15, 2026, for the 2025 tax year.