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1042-S Requirements for Foreign Tax-Exempt Vendors: What You Need to Know
June 2, 2025
Q. A foreign vendor indicates they are a tax-exempt organization. Is this foreign vendor subject to the 1042-S reporting and withholding requirements if they are also a nonprofit organization?
A.
(Answered by IOFM's third party tax advisor)
Yes, 1042-S rules still apply. There are no exemptions with Form 1042-S as there are with 1099s. You will need to get a W-8 (most likely a W-8EXP) from the organization.
Q.
Thank you for your response. We received a current W-8 from the vendor. If the…
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