IRS Releases Draft 2023 Nonresident Withholding Form

A draft version of the 2023 Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, was released Sept. 23 by the Internal Revenue Service.

Compared to the 2022 form, the draft adds and removes several income and status-related codes reported in various boxes on the form. The new codes include an income code to report certain distributions from publicly traded partnerships and a status code for disclosing qualified intermediaries. The draft removes an exemption code for territory financial institutions and status codes for territory financial institutions.

Territory financial institutions will now be coded as US branches, the draft form ...