Sec. 6 Filing Requirements, Retention Requirements, Due Dates, and Extensions

.01 Filing Requirements

For instructions regarding Form 1042-S, refer to the Instructions for Form 1042-S. The instructions includes additional information about filing requirements, paper filing, and line instructions.

Treasury Decision (TD) 9972 amended the rules for filing information returns electronically. The updated regulations mandate that businesses electronically file information returns if they are required to file 10 or more information returns of any form type. For instance, information returns processed through the Information Returns Intake System (IRIS), Filing Information Returns Electronically (FIRE) System, Affordable Care Act Information Returns (AIR) System, and Form W-2 submissions to the Social Security Administration (SSA) all fall within the same form type category. The total count includes scenarios like four Form 1099-NEC filings via IRIS, two Form 1042-S filings via FIRE, two Form 1095-B filings via AIR, and two Form W-2 filings via SSA. Since the total of all forms filed equals ten, the customer is required to file all information returns electronically. Corrections are not factored into this calculation; however, if an information return is submitted electronically, associated corrections must also be filed electronically using the same system used for the original filing. For more information about the regulations and the reduced threshold to electronically file, refer to the IRS and Treasury’s final regulations on e-file and the Filing Information Returns Electronically (FIRE) webpages.

Forms 1042-S must also be filed electronically if the withholding agent is a partnership that has more than 100 partners. Financial institutions that are required to report payments made under Chapter 3 or 4 must electronically file Forms 1042-S (regardless of the number of forms to be filed). See Internal Revenue Code Section 6011(e)(4) and Regulations Section 301.1474-1. If you’re required to file electronically, but fail to do so, and you don’t have an approved waiver, you may be subject to a penalty. For more information, see part F in the General Instructions for Certain Information Returns.

See Form 8508, Application for a Waiver from Electronic Filing of Information Returns and Part A. Sec. 8, Form 8508, Application for a Waiver from Electronic Filing of Information Returns, if you’re required to file electronically but this requirement causes an undue hardship.

Note: All filers are encouraged to file information returns electronically even if they are not required to do so.

All filing requirements apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN). For the purposes of this publication, TINs include:

• Social Security Number (SSN)

• Employer Identification Number (EIN)

• Individual Taxpayer Identification Number (ITIN)

• Qualified Intermediary Employer Identification Number (QI-EIN)

• Withholding Foreign Partnership Employer Identification Number (WP-EIN)

• Withholding Foreign Trust Employer Identification Number (WT-EIN)

For example, if a corporation with several branches or locations uses the same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.

Note: Withholding agents filing Form(s) 1042-S must file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. See Instructions for Form 1042 for additional information.

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.02 Retention Requirements

Issuers/Transmitters are strongly recommended to keep a copy of FIRE System file status emails and the associated files of the information returns or be able to reconstruct the data for at least three years from the reporting due date with the exception of returns reporting federal withholding which need to be retained for four years.

.03 Due Dates

The due date for filing Form 1042-S electronically or by paper is March 15th. You must furnish Forms 1042-S to recipients by March 15th. If due date falls on a Saturday, Sunday, or legal holiday, the Form 1042-S is considered timely if filed or furnished on the next business day.

Note: A partnership or trust that is permitted to withhold in a subsequent year with respect to a foreign partner's or beneficiary’s share of income for the prior year may designate the deposit of the withholding as attributable to the preceding year. If a partnership withholds on a foreign partner's share of income after March 15 of the subsequent year, the due date for filing the applicable Form(s) 1042-S is September 15 of the subsequent year. In such a case, the partnership will be required to report the associated income and tax withheld on Forms 1042 and 1042-S for the preceding year. For more information, see proposed regulations issued on December 18, 2018 (83 FR 64757) and the Instructions for Form 1042.

.04 Extension of Time

An automatic 30-day extension of time to file information returns may be submitted by creating and transmitting an electronic file or Fill-in form on the FIRE Production System or submitting a paper Form 8809. The automatic extension for filing Forms 1042-S with the IRS does not extend the time for providing Forms 1042-S to the recipients. See Part A. Sec. 7, Extension of Time for Recipient Copies of Information Returns below.

Alert: Extension of Time requests submitted through the FIRE System (Production) will require the entry of your FIRE account PIN.

Regulation Section 1.6081-8(d)(2) allows for a request of an additional 30-day extension of time if the automatic 30-day extension of time was granted and the additional extension request is filed before the expiration of the initial 30-day extension. Requests for additional time are not automatically approved and are generally granted only where it is shown that extenuating circumstances prevented filing by the date granted by the first request. The additional 30-day extension request must be submitted on a paper Form 8809 (current year version). Select a check box under Line 7 that describes the need for an extension (required). Form 8809 must be signed by the filer/transmitter or a person who is duly authorized to sign a return.

An approval letter will not be issued for an initial automatic 30-day extension request. However, the issuer/filer will receive an incomplete or denial letter, if applicable. Refer to Part D. Extension of Time.