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Marketplace Transactions, Foreign Sellers, and 1042-S Reporting Rules
August 28, 2025
Q. I’m seeking guidance on whether certain marketplace transactions create U.S.-source income for foreign sellers, triggering Form 1042-S reporting and potential withholding obligations.Scenario:• We operates a U.S.-based e-commerce website.• A foreign vendor can lists products for sale on our site.• A U.S. customer purchases the product through our site.• We collect the purchase price from the customer and remit the net amount (after fees we keep) to the foreign seller.• The product is shipped…
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