Who Must File

Every withholding agent or intermediary who receives, controls, has custody of, disposes of, or pays a withholdable payment (to which chapter 4 withholding applies) or an amount subject to withholding, must file an annual return for the preceding calendar year on Form 1042 unless an exception to filing applies. Also, any PTP or nominee making a distribution of ECTI under section 1446, or any entity required to report a distribution on Form 1042-S that is subject to withholding under section 1445, must file Form 1042 for the preceding calendar year.

You must file Form 1042 if any of the following apply.

• You are required to file or otherwise file Form(s) 1042-S for purposes of either chapter 3 or 4 (whether or not any tax was withheld or was required to be withheld to the extent reporting is required). File Form 1042 even if you file Form(s) 1042-S electronically.

• You file Form(s) 1042-S to report to a recipient tax withheld by your withholding agent.

• You pay gross investment income to foreign private foundations that are subject to tax under section 4948(a).

• You pay any foreign person specified federal procurement payments that are subject to withholding under section 5000C.

• You pay an eligible deferred compensation item to a covered expatriate or you are a trustee making a distribution from a nongrantor trust to a covered expatriate under section 877A.

• You are a QI, withholding foreign partnership (WP), withholding foreign trust (WT), participating foreign

2 Instructions for Form 1042 (2025)

financial institution (FFI), or reporting Model 1 FFI making a claim for a collective refund under your respective agreement with the IRS. See Regulations section 1.1471-1(b)(114) for the definition of a reporting Model 1 FFI.