In a notice issued Tuesday, Feb. 27, the IRS said it will postpone the e-filing requirement for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.
In Notice 2024-26, the IRS said that U.S. withholding agents are administratively exempt from the e-filing of Form 1042 for the calendar year 2024. Foreign withholding agents are administratively exempt for calendar years 2024 and 2025.
The administrative exemption from the e-filing requirements for Form 1042 is automatic, and the IRS will not require withholding agents to request a waiver.
The postponement comes after the IRS heard from withholding agents about the problems they face with e-filing the forms.