What is Form 1042-S?

Form 1042-S is used by Kasamba to report income payments (such as interest, dividends, or compensation for services), taxes withheld, and tax treaty benefits derived from U.S. sources and paid to international (non-U.S.) persons. There is no minimum threshold for Form 1042-S.

For 2023, Kasamba will issue the 1042-S form only to non-U.S. experts who had IRS withholding.

Why am I receiving a copy of this form and do I need to take further action?

Generally, Kasamba files this form when it pays Advisors who are not U.S. residents (a foreign person) for certain services performed by an Advisor through the Kasamba platform.

If you receive a copy of this form you are likely an Advisor who is a non-U.S. resident and has received payment for services through the Kasamba platform and had tax withholdings. You should keep a copy for your records. Please note: Kasamba does not provide tax advice. Please contact your tax advisor regarding any further action required with respect to this form.

How often does Kasamba file this Form 1042-S?

Once per year for each foreign payment recipient (e.g., a non-U.S. Kasamba Advisor). Kasamba must file Forms 1042-S with the IRS and must furnish copies of the forms by March 15th annually of the year following the date of payment.

What withholding tax rate should I expect to see on the copy of Form 1042-S?

Withholding tax at a rate of 30% must generally be deducted from 1042-S reportable payments unless the income is exempt from withholding under provisions of the code or if the payee provides documentation (such as a valid IRS Form W-8) claiming a reduced rate of withholding under a tax treaty.