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1042 Reporting for Canadian Vendor Payments: Clarifying the Impact of U.S. Payee Assignment
March 12, 2025
Q. We have a Canadian vendor that we pay for services preformed in the US. Normally the payment would result in 1042 reporting. If the vendor has a notice of assignment to a US payee location, does that change the fact that we would still need to send a 1042 to the CAD company.
A.
(Answered by IOFM's third-party tax expert)
Payment in Canadian dollars or U.S. dollars does not change the nature of the reporting, though the 1042 should reflect amounts converted to U.S. dollars.
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