To determine the tax status of a foreign beneficiary, the trust or estate fiduciary should have the foreign beneficiary complete a Form W-8BEN. That form provides the contact and other information needed by the fiduciary to file the 1041 and related forms and schedules. A fiduciary can generally rely on the information provided with the W-8BEN for a period of 3 years after which a new W-8BEN is required.

Generally, the withholding rate for distributions of income not effectively connected with a U.S. trade or business to foreign beneficiaries is 30%, which a fiduciary is required to withhold and required to remit to the U.S. Treasury. Use Form 1042 to transmit payment via the Electronic Federal Tax Payment System (EFTPS). Due by March 15. Send 1042-S to the income recipient. Where the 30% withholding applies there is no need to file a 1040-NR.