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Business and Policy Areas
Business and Policy Areas

IRS Explains Forms 1042-S Solution

June 13, 2016

As NACUBO recently reported, the Internal Revenue Service (IRS) is taking steps to correct the problems faced by international students who experienced processing problems related to Forms 1042-S. On June 6, the IRS issued a public statement confirming its commitment to identify affected taxpayers and issue refunds.

In the statement, the IRS reports it is "working as quickly as possible" to identify everyone who was affected by the Forms 1042-S issues and deliver their refunds. Students do not need to take any action at this time. 

In a separate response to an inquiry on this matter from Rep. Lloyd Doggett (D-TX), the IRS reported that the Form 1042-S problems stemmed from overly restrictive controls that were put in place to detect or stop questionable or fraudelent refunds. Additionally, the IRS acknowledged that data transciption errors and incomplete guidance to employees compounded the problem.


Liz Clark
Senior Director, Federal Affairs

Mary Bachinger
Director, Tax Policy