TaxBandits Knowledge Base

What are the new updates in Form 1042 for the 2023 Tax Year?

Here are the key updates for Form 1042 for the 2024 tax year:

Administrative Exemption from Electronic Filing

• Foreign withholding agents are exempt from the mandatory electronic filing requirement for tax year 2024 (filed in 2025).
• No electronic filing waiver request is required to take advantage of this exemption.

Credit Forward Framework Sunset

• The credit forward framework (previously outlined in Notice 2010-46) has been obsoleted.
• However, withholding agents who were using it before September 11, 2024, may continue to use it until December 31, 2024.
• No withholding agent may use the credit forward framework after December 31, 2024.