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The IRS form W-2 is used to report annual taxable federal and state wages. Treaties for nonresident aliens (NRA) may exempt the employee from federal taxes. If you are a NRA and are exempt from federal taxes, then you will receive a form 1042-S.
What is a 1042-S? A non-citizen is, in most cases, subject to U.S. tax on income from U.S. sources. Form 1042-S, Foreign Persons U.S. Source Income Subject to Withholding, is used to report amounts paid to foreign persons (including those presumed to be foreign) by a United States based institution or business.
1042. The employer shall make reasonable efforts to safeguard the privacy of the employee as to the fact that he or she has a problem with illiteracy.
The penalty for not filing Form 1042 when due (including extensions) is 5% of the unpaid tax for each month or part of a month the return is late, up to a maximum of 25% of the unpaid tax.
Use Form 1042 to report the following: The tax withheld under chapter 3 on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts. The tax withheld under chapter 4 on withholdable payments.
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A 1042 exchange, also referred to as a qualified replacement property (QRP) exchange, is a tax planning strategy available to certain shareholders who wish to defer capital gains tax on eligible stock sold to an employee stock ownership plan (ESOP).
Use Form 1042 to report the following: The tax withheld under chapter 3 on certain income of foreign persons, including nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts.
Basically, a 1042 election allows qualifying individuals and entities to defer capital gains tax on qualified securities sold to an Employee Stock Ownership Plan (ESOP) if the proceeds of the sale are reinvested in qualified replacement property (QRP) as defined in IRC Sec. 1042(c)(4).

1042 2019 s