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Nonresident Alien Reporting


Nonresident (NRA) reporting is required for amounts of U.S. source fixed, determinable annual, or periodical (FDAP) income paid to non-U.S. persons.  These amounts are subject to reporting on Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, including persons presumed to be non-U.S. persons and even if no amount is deducted and withheld from the payment.

In addition, NRA reporting requires the filing of an information return, Form 1042-S, that reports amounts paid and withheld, and a Form 1042 that reports the aggregate information on Form 1042-S and amounts deposited with the IRS. Amounts subject to reporting on Form 1042-S are amounts paid to non-U.S. persons even if the withholding agent did not withhold tax because the income was exempt from tax under a U.S. tax treaty or the IRC, including the exemption for income that is effectively connected with the conduct of a trade or business in the United States. A withholding requirement relates to an amount required to be deducted and withheld from the payment of income paid to a non-U.S. person.