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2022 Form 1042-S!

On December 13, 2021, the Internal Revenue Service (IRS) unveiled the much-anticipated 2022 Form 1042-S, a critical document used to report various types of income paid to foreign persons, including non-resident aliens, foreign corporations, and foreign governments, subject to withholding under the United States tax laws. While the core function of the form remains consistent, the IRS has introduced several changes to the codes used within the form, aiming to enhance clarity and streamline reporting processes for taxpayers and withholding agents.

Some of the notable changes to the codes on the 2022 Form 1042-S may include:

  • Box 1 Income Code.
  • Dividend Code 40 Other dividend equivalents under IRC section 871(m). Updated to remove the reference to section 871(l).
  • New Dividend Code 56 Dividend equivalents under IRC section 871(m) as a result of applying the combined transaction rules.
  • New Other Income Code 57 Amount realized under IRC section 1446(f).
  • Boxes 12b, 12c, 13f, 13g, 15b, 15c, 16d, and 16e.
  • Type of Recipient, Withholding Agent, Payer, or Intermediary Code. Chapter 3 Status Codes.
  • 2022 Code 08 Partnership other than Withholding Foreign Partners or Publicly Traded Partnership. The 2022 Code adds Publicly Traded Partnership.
  • New Code 38, Publicly Traded Partnership.
  • Footnote with respect to Pooled Reporting Codes updated to specify that Codes 27 through 32 should only be used by a QI, QSL, WP, or WT. A QI acting as a QDD may use ONLY Code 27 or 28.

Check out the 2022 Form 1042-S here:

https://www.irs.gov/pub/irs-pdf/f1042s.pdf

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2022 Form 1042-S

This document contains general information only and is not a substitute for accounting, tax, or any other professional advice or services. The information provided is considered accurate at the time of publishing and will not be updated with new regulation requirements.

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