Certified Payroll Professional Practice Exam

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Form 1042 is required to be filed under which circumstances?

  1. Claiming worker status determination

  2. Gross investment income to foreign private foundations

  3. Report distributions from profit-sharing plans

  4. Application for Social Security Card

The correct answer is: Gross investment income to foreign private foundations

Form 1042 is required to be filed when reporting gross investment income to foreign private foundations. This form is used by withholding agents to report income paid to foreign persons, including foreign private foundations, and to document the amount withheld as tax. Therefore, option B is the correct choice as it directly aligns with the purpose of Form 1042.

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