Definition
Form 1042-S
The annual statement a non-US investor receives showing US-source income paid and tax withheld.
Form 1042-S reports US-source income paid to a foreign person and the tax withheld on it, and it is the non-US investor's counterpart to the Schedule K-1 that US partners receive. A foreign LP in a US SPV may receive both: a K-1 reporting their allocated share of partnership items, and a 1042-S evidencing amounts withheld at source. The 1042-S is what the investor uses to claim a foreign tax credit at home or to seek a refund where too much was withheld, so the accuracy of the form has direct cash consequences for them. The partnership files the corresponding aggregate return on Form 1042, and late or incorrect filings carry penalties.