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Rounding of dollar amounts reported on 1042-S
January 17, 2023
Q. We made a payment by credit card to a foreign vendor. The vendor took the entire amount, and now will not provide a W-8. So we are paying the 30% that was not withheld from the vendor payment to the IRS ourselves.
My question is the 30% is not an even dollar amount. The overview of instructions state to round amounts. But instructions for Box 11 of the Form 1042-S, do not state if you round or not. Do I round? And if so, if the 30% ended up being an amount like $11.75, so I rounded and…
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