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Correcting Withholding Oversights for Foreign Vendor Payments
March 27, 2024
Q. We made a payment to a foreign vendor and did not withhold when we were supposed to. What are the next steps to correct this oversight? How is this reported on the 1042-S and Form 1042?
A.
Answered by IOFM's third-party tax experts.
The amount which your organization fails to withhold becomes a tax liability of your organization. If you have another payment to the vendor from which you can withhold the tax amount BEFORE March 15, 2024, see Page 9 of the IRS Instructions for Form 1042…
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