Important Update for Withholding Agents and Partnerships The IRS has implemented new electronic-filing requirements under Treasury Decision 9972, impacting withholding agents and partnerships filing Form 1042-S. The changes are effective for filings submitted on or after March 15, 2024, meaning all applicable records filed from this date onward must be submitted electronically.
Who Must File Form 1042-S Electronically?
- Withholding Agents (Non-Financial Institutions): If you are required to file 10 or more information returns (including Forms 1042-S, 1099 series, W-2, and others), you must submit all returns electronically.
- Partnerships with More Than 100 Partners: Required to file all information returns electronically, regardless of the total number of returns filed.
- Corrections Must Also Be Filed Electronically: If the original Form 1042-S was submitted electronically, any corrected returns must also be filed electronically, no matter the number of corrections.
What Forms Are Included in the Threshold Calculation?
To determine whether electronic filing is mandatory, the IRS requires aggregation of various information returns, including:
- Form 1042-S
- Form 1099 series (including 1099-MISC, 1099-INT, etc.)
- Forms W-2 and W-2G
- Form 1094 series, 1095-B, 1095-C
- Form 8027 and Form 5498 series
- Other relevant tax forms
Compliance Deadline & Penalties
The new electronic filing mandate applies to all Forms 1042-S submitted on or after March 15, 2024. Failure to comply will result in IRS penalties, making non-compliant filers subject to fines and potential regulatory issues.
Withholding agents and partnerships should ensure they are fully prepared for this requirement to avoid unnecessary risks.
For more information and assistance, consult IRS resources or professional tax advisors.
Stay ahead of tax regulation changes with OPES Software!