A Mid-Year Check-in on Form 1042-S and Digital Transactions | Product

Organizations are struggling with Form 1042-S more than ever now. Issues relating to international contractors (and other international transactions) are confusing and confounding, and the potential for penalties or being assessed a backup withholding liability loom over every one of these transactions. To add even more layers of complexity, the Treasury Department in 2025 issued new regulations relating to digital transactions and cloud transactions. These regulations throw new wrinkles into 1042-S — especially with reporting of Software as a Service (SaaS) transactions when your SaaS provider is in another country. We are all still unwinding what these regulations really mean, and we have received no guidance from the IRS. This webinar will attempt to answer your questions, will tell you what we know and where things stand, and give advice on compliance relating to this topic. Plus, as time allows, we will cover other Form 1042-S updates.

Agenda

• Background on the new regulations
• Regulation 1.861-18 on digital transactions — this one isn't so bad
• Regulation 1.861-19 — where the problems lie
• Proposed regulations on sourcing — where even more problems lie
• Compliance and best practices
• Other 1042-S updates