Filing Your Form 1042-S Without Penalties Through a Vernon Hills Accountant
One of the most important services of a Vernon Hills accountant is filing Form 1042-S, and the IRS has complicated tax regulations that are often subject to changes. The regulations also depend on the taxpayer’s national origin.
What is Form 1042-S?
Form 1042 is designed to cover all the income and payments US national employers make to their non-resident alien employees. Every business, university, and institution must complete this form and file it by mentioning all the payments made to non-resident students and employees. These include, but may not be limited to:
- Employee compensation
- Corporate distributions
- Pension payments
- Amount earned from gambling
All U.S. employers must complete and submit Form 1042-S regardless of whether tax has been withheld. Scholarship payments and education expenses are usually not subject to with holdings, but they must be reported on this form. If you want to learn more, feel free to speak to a Vernon Hills accountant.
Possible Penalties When Filing Form 1042-S
Form 1042-S must be completed according to the specified instructions, and they must be submitted by the deadline. Otherwise, you will have to pay penalties. Whether you’re filing electronically or by mail, you can find the instructions on the form.
To make sure you don’t pay any penalties, read the instructions carefully, and speak with a Vernon Hills accountant to make sure everything is correct.
Not only will this person be able to keep you from paying penalties, but he or she will be able to come up with a tax strategy that will secure the future of your business.
Here are some of the cases where you will have to pay a fine:
- Not submitting Form 1042-S by the deadline will result in a penalty, unless you have “reasonable cause” for doing so. The penalty has no maximum value, and it will increase according to the number of days the form is past due. The penalty fee will also depend on other factors, which can include the size of your business and any false information you have on the form.
- Providing incorrect or incomplete information on Form 1042-S can result in a penalty. You must submit all the necessary information by the due date, or you could pay a penalty of up to $100 – that is, unless you can provide proof of “reasonable cause.” If you dismiss this requirement, your penalty will increase by 10% of what you have reported on the form.
- If you are required to file your form electronically, failing to so will result in a penalty, but you can avoid it if you have a valid reason.
Many employers and institutions find it difficult to meet all the requirements for Form 1042-S without paying penalties. The difficulty arises from gathering the required information. That’s why you need to speak to a Vernon Hills accountant – someone who has the experience in dealing with these situations.
Finding a Vernon Hills Accountant
The complex world of taxation can be overwhelming, and it can be difficult for just anyone to understand. That’s why you need to find someone who has the knowledge and expertise to make sense of it all.
If you have employees who aren’t permanent U.S. residents, knowing how to file Form 1042-S is critical. Not filing it correctly can result in severe penalties, and it can negatively impact your business. This is one reason why you need to find a Vernon Hills accountant to help you.
GLG Accounting has qualified CPA’s who can make sure you file Form 1042-S without paying any penalties, and we can make sure it is in compliance with current tax regulations. We can help you with many areas of taxation, and we have years of combined experience.
Our team wants to our customers in the best possible manner, and we are committed to growing our knowledge of the industry. This is how we plan to become the best accounting firm in Chicago, and we won’t stop until we achieve that goal.
If you want to speak to a Vernon Hills accountant who can help you, get in touch with us today!