Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, is the official income reporting document that a payer provides to a foreign payee of an income and to the IRS. A form 1042-S is used to report tax treaty exempt wages, scholarship grants and fellowships, independent personal services income, royalties, other income including awards, prizes, lottery/gambling winnings, deposit interest, etc. made to a foreign person.