On November 15, 2021, the IRS announced the availability of its Form 1042-S Data Integrity Tool. This software program provides a no-cost standalone tool to withholding agents that will assist them in complying with their Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding) information reporting and withholding responsibilities.
Withholding agents will use the tool in order to perform a quality review of data prior to submission to the IRS. Although use of the tool will not change any obligations to file Forms 1042-S with the IRS and furnish a copy of the Form 1042-S to the payee, the IRS will consider whether a withholding agent is using the tool when making enforcement and penalty determinations.
This is a great way to validate your Form 1042-S data prior to filing!
Check out the IRS release and how to register for the tool here: