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1042-S Reporting for Settlement Payments to Foreign Publishing Companies
March 12, 2025
Q. We are an US insurance company with a US insured. Last year, we issued a settlement payment to a foreign publishing company for alleged copyright infringement by our insured. Is that settlement payment FDAP income to be reported on a 1042-S?
A.
(Answered by IOFM's third-party tax expert)
Form 1042-S reporting is for U.S.-source income. As per the IOFM Master Guide to Form 1042-S Compliance the sourcing of settlements is as follows: "Settlements and litigation awards are sourced looking to…
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