I am Alex, a non-Us resident (I am from EU). I have an account in Interactive Brokers. The Broker sent me 1042-s (they obliged to report to IRS my interest and dividend incomes).

What shall I do with these forms? Must I report something to IRS too?

  • I think you may have been required to send the broker a W-8BEN form. To tell them you were not a US resident and (presumably) do not pay US taxes. (irs.gov/forms-pubs/about-form-w-8-ben) this would have told the broker and the IRS that you were not american and thus didnt have the normal filing requirements. – Vality Mar 25 at 17:03
  • Thank You! I also think that reporting IRS /1042-S/ is solely the obligation of the witholding agent. - Interactive Brokers. The funny think is that IB refuse to answer this /very simple/ question. they treat it as an investment or tax advise?! Maybe i was sent these forms /1042-S/ just for the information ... for a proof of being accurate before IRS? – Alex Mar 25 at 18:14
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    I am no tax expert, but I think what 1042-S is telling you, is that the IRS withheld (took directly from your broker) some of your profits from trades. That means some of the money you normally would have received is currently being held by the IRS. This happens (from my understanding) if you do not file a W-8BEN in time and so the IRS thinks you should be paying taxes. However I am not 100% certain how you are supposed to get the withheld money back now they have taken it. There is likely another form (or maybe just a normal tax return) which you can file with the IRS to have them return it. – Vality Mar 25 at 18:17
  • Thanx!!! I am not an expert too. I filed W-8BEN. It is obligatory. 1042-s is sent to me by IBKR for information , thats what i suppose ... no logic for me to report IRS as well, once IBKR did it as an witholding agent ... Thank you all !!! – Alex Mar 26 at 10:07

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