Specific Instructions for Withholding Agents

All amounts must be reported in U.S. dollars.

Rounding Offto Whole Dollars

You may round off cents to whole dollars. If you do round to whole dollars, you must round all amounts. To round off amounts to the nearest whole dollar, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3. If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding and only round off the total.

Amended Checkbox

See Amended Returns, later.

Pro-rata Basis Reporting Checkbox

Withholding agents must check this box to notify the IRS that an NQI that used the alternative procedures of Regulations section 1.1441-1(e)(3)(iv)(D) failed to properly comply with those procedures. See Pro-rata reporting, earlier, for additional information.

Box 1, Income Code

All filers must enter the appropriate 2-digit income code from the list, earlier. Use the income code that is the most specific. See Pub. 515 for further explanation of the income codes. Below are examples on how to use some of the income codes. 

  1. Use code 09 for the following types of capital gain:

    1. Gains on disposal of timber, coal, or domestic iron ore with a retained economic interest, unless an election is made to treat those gains as income effectively connected with a U.S. trade or business;

    2. Gains on contingent payments received from the sale or exchange after October 4, 1966, of patents, copyrights, secret processes and formulas, goodwill, trademarks, trade brands, franchises, and other like property;

    3. Gains on certain transfers of all substantial rights to, or an undivided interest in, patents if the transfers were made before October 5, 1966; and

    4. Certain gains from the sale or exchange of original issue discount obligations issued after March 31, 1972.

  2. Use code 17 for payments for personal services performed by an independent contractor as contrasted with those performed by an employee. This includes payments that are subject to the business profits article of a treaty.

  3. Use code 29 (deposit interest) if you are paying bank deposit interest, not code 01 (interest paid by U.S. obligors-general).

  4. Use code 24 (real estate investment trust (REIT) distributions of capital gains) for distributions of capital gains from a real estate investment trust (REIT). Use code 36 (capital gains distributions) for capital gain distributions (dividends) paid or credited by mutual funds (or other regulated investment companies). Include short-term capital gain dividends (use exemption code 02 (exempt under IRC (other than portfolio interest)) in box 3a).

    Note.

    Exempt-interest dividends should be reported under income code 01 (interest paid by U.S. obligors-general) (use exemption code 02 (exempt under IRC (other than portfolio interest)) in box 3a).

  5. Use code 28 for gambling winnings. These are proceeds from a game other than blackjack, baccarat, craps, roulette, or big-6 wheel. For more information, see Pub. 515.

  6. Use code 33, 34, or 35 for all substitute payment transactions. For more information, see Regulations sections 1.861-2(a)(7) and 1.861-3(a)(6) and Notice 2010-46.

  7. Use code 37 (return of capital) for a nondividend distribution. This is a distribution that is not paid out of the earnings and profits of a corporation. It represents a distribution in part or full payment in exchange for stock.

  8. Use code 40 (other dividend equivalents under IRC section 871(m)(formerly 871(l))) for other U.S.-source dividend equivalents. These are dividend equivalent payments under section 871(m) that are not substitute dividend payments identified with income code 34.

  9. Use code 41 (guarantee of indebtedness) for certain guarantee of indebtedness payments. These are amounts paid for the provision of a guarantee of indebtedness that was issued after September 27, 2010.

  10. Use either code 42 (earnings as an artist or athlete – no central withholding agreement) or 43 (earnings as an artist or athlete – central withholding agreement) for payments to an artist or athlete. A central withholding agreement is Form 13930, Application for Central Withholding Agreement, plus additional information specified in the instructions to such form, that is entered into by the artist or athlete, a designated withholding agent, and the IRS. For more details, see Pub. 515.

  11. Use code 50 (income previously reported under escrow procedure) with respect to a recalcitrant account holder of a dormant account for which a participating FFI reported the income on Form 1042-S in a prior calendar year but for which the participating FFI was not required to deposit the tax withheld or determined that withholding was not required until the current calendar year under an applicable escrow procedure. For additional information on the escrow procedure for dormant accounts, see Regulations section 1.1471-4(b)(6).

  12. Use code 52 (dividends paid on certain actively traded or publicly offered securities), 53 (substitute payments- dividends paid from certain actively traded or publicly offered securities), 51 (interest paid on certain actively traded or publicly offered securities), and 13 (royalties paid on certain publicly offered securities) if the income paid is described in Regulations section 1.1441-6(c)(2) and you have reduced the rate of withholding under an income tax treaty without the recipient providing a U.S. or foreign TIN.

If you paid more than one type of income to or on behalf of the same recipient, you must complete a separate Form 1042-S, Copy A, for each income type.

Note.

Although income codes are provided for short-term OID and notional principal contract income, those items are not always subject to reporting on Form 1042-S. For example, short-term OID may need to be reported by an NQI or flow-through entity if those amounts are paid to foreign persons and another withholding agent backup withheld on those amounts under the presumption rules. Notional principal contract income is reportable if it is effectively connected with the conduct of a trade or business in the United States or results in the payment of interest under Regulations section 1.446-3(g)(4) or a dividend equivalent under section 871(m)) and the regulations thereunder. For more information, see the regulations under chapter 3 and Pub. 515.

Box 2, Gross Income

For each income type, enter the gross amount you paid to or on behalf of the recipient during calendar year 2015, including withheld tax. The following special procedures apply to the reporting of gross income.

  • You must report the entire amount of a corporate distribution made with respect to stock even if you elect to reduce the amount of withholding on the distribution because all or a part of the distribution is nontaxable or represents a capital gain dividend.

  • You must report the entire amount of a payment if you do not know at the time of payment the amount that is subject to withholding because the determination of the source of the income or the calculation of the amount of income subject to tax depends upon facts that are not known at the time of payment.

  • If you applied the escrow procedure under chapters 3 and 4, report the entire amount of a payment that you previously reported in a prior calendar year for which you withheld tax but did not deposit such tax under the escrow procedure if the liability is due in the current calendar year.

  • You must report the entire amount of gains relating to the disposal of timber, coal, or domestic iron ore with a retained economic interest and gains relating to contingent payments received from the sale or exchange of patents, copyrights, and similar intangible property.

  • You must report only the amount of cash paid on notional principal contracts.

Boxes 3 and 4

If you are reporting amounts in boxes 7 through 9, check either box 3 or box 4 to indicate whether the amounts were withheld (or assumed by the withholding agent) pursuant to chapter 3 (box 3) or chapter 4 (box 4). If you are reporting tax withheld under section 5000C, check box 3 as if the tax were a chapter 3 tax.

Note.

Either box 3 or box 4 must be checked on each Form 1042-S, not both boxes. If you are not reporting amounts in boxes 7 through 9 because you did not withhold under chapter 3 or 4, you should check box 3.

If you are reporting payments to U.S. payees, check box 4 and leave boxes 3a and 3b blank.

Boxes 3a and 4a, Exemption Code

In most cases, if the tax rate you entered in box 3b or 4b is 00.00, you should enter the appropriate exemption code (01 through 22) from Income Codes, Exemption Codes, and Recipient, Withholding Agent, or Intermediary Codes, earlier, as applicable for chapter 3 and 4 purposes. In certain cases more than one exemption code will apply; see below instructions for the applicable codes to determine which code to use.

If an amount was withheld under chapter 4 (the tax rate you entered in box 4b is greater than zero and is not due to backup withholding), enter “00” in box 4a. If an amount was withheld under chapter 3 (the tax rate you entered in box 3b is greater than zero and is not due to backup withholding), enter “00” in box 3a. If the tax rate you entered in box 3b is due to backup withholding, leave box 3a blank.

If exemption code 01 or 14 (effectively connected income) applies, you must enter the recipient's U.S. TIN in box 13a if you relied on a presumption rule to treat the income as effectively connected with a U.S. trade or business. If the recipient's U.S. TIN is unknown or unavailable, you must withhold tax at the rate of 30% (30.00) and enter “00” in box 4b or 3b (as applicable).

A withholding agent should use exemption code 06 (QI that assumes primary withholding responsibility) only if it is making a payment to a QI that has represented on its Form W-8IMY that it is assuming primary withholding responsibility under chapters 3 and 4.

A withholding agent should use exemption code 07 (WP or WT) only if it is making a payment to a foreign partnership or trust that has represented on its Form W-8IMY that it is a withholding foreign partnership or trust.

A withholding agent should use exemption code 08 (U.S. branch treated as U.S. person) or 09 (territory FI treated as U.S. person) (as applicable) only if it is making a payment to a U.S. branch or to a territory FI and it has represented on its Form W-8IMY that it agrees to be treated as a U.S. person.

A withholding agent should use exemption code 10 (QI represents that income is exempt) only if it makes a payment to a QI that has not assumed primary withholding responsibility under chapters 3 and 4 or primary backup withholding responsibility, but has represented on a withholding statement associated with its Form W-8IMY that the income is exempt from withholding.

A withholding agent should use exemption code 11 (QSL that assumes primary withholding responsibility) only if the withholding agent makes a substitute dividend payment to a financial institution (including a QI) that represented on its Form W-8IMY that is acting as a QSL for the account associated with the form.

A withholding agent should use exemption code 12 (payee subjected to chapter 4 withholding) if the recipient has been withheld upon under chapter 4 and thus chapter 3 withholding does not apply. See Special Instructions for use of Chapter 3 Exemption Codes, later.

A withholding agent should use exemption code 13 (grandfathered payment) only if the withholding agent makes a payment under a grandfathered obligation and exemption code 13 is the only exemption code that applies. If another exemption code applies, it should be used instead of exemption code 13.

A withholding agent should use exemption code 15 (payee not subject to chapter 4 withholding) if the payment is a withholdable payment (as defined in Regulations section 1.1471-3(a)), but has not been withheld upon under chapter 4 because of the payee's chapter 4 status. Also, if the withholding agent applies the 90-day grace period for a withholdable payment following a change in circumstances, use exemption code 15 (payee not subject to chapter 4 withholding).

A withholding agent should use exemption code 16 (excluded nonfinancial payment) only if exemption code 16 is the only exemption code that applies. If another exemption code applies, it should be used instead of exemption code 16.

A withholding agent should use exemption code 17 (foreign entity that assumes primary withholding responsibility) only if it makes a payment to a QI that assumes primary withholding responsibility, a WP, or a WT.

A withholding agent should use exemption code 18 (U.S. payees – of participating FFI or registered deemed-compliant FFI) only if it makes a payment to a participating FFI or registered deemed-compliant FFI and only to the extent represented on such FFI's withholding statement associated with its Form W-8IMY that the payment is allocable to a chapter 4 withholding rate pool of U.S. payees and FFI certifies on its withholding certificate that the FFI meets the requirements to include the account holder in a withholding rate pool of U.S. payees.

A withholding agent should use exemption code 20 (dormant account) only if it makes a withholdable payment to a participating FFI or registered deemed-compliant FFI that represented on its withholding statement associated with its Form W-8IMY that the payment is allocable to a dormant account holder for which the escrow procedure of Regulations section 1.1471-4(b)(6) applies.

A withholding agent should use exemption code 21 (excluded payment on offshore obligation) for a payment that is excluded from the definition of a withholdable payment under Regulations section 1.1473-1(a)(4)(vi). A withholding agent should also use exemption code 21 for any sale or distribution that is an amount subject withholding under chapter 3 but is not a witholdable payment under Regulations section 1.1473-1(a)(1)(ii). If another exemption code applies, it should be used instead of exemption code 21. The exemption for these types of payments will end for payments made after December 31, 2016.

A withholding agent should use exemption code 22 (excluded payments on collateral) for a payment made with respect to a collateral arrangement that is excluded from the definition of a withholdable payment under Regulations section 1.1473-1(a)(4)(vii). If another exemption code applies, it should be used instead of exemption code 22. The exemption for these types of payments will end for payments made after December 31, 2016.

If you have failed to provide another withholding agent with appropriate information regarding the status of the person to whom you are making a payment, the other withholding agent may be required to withhold on the payment based on the presumption rules. If the income is in fact exempt from withholding or subject to a reduced rate of withholding, and the account holder requests a corrected form, you must submit a Form 1042-S providing the correct information. In this situation, you must:

  • Indicate the correct rate of withholding that should have been applied to the income in boxes 3b or 4b,

  • Enter the appropriate exemption codes, if any, in boxes 3a and 4a,

  • Enter the actual amount of U.S. federal tax withheld by the other withholding agent in box 8,

  • Provide the name and address of the actual recipient in boxes 13a-g along with the other required information for the recipient.

  • Provide the name and EIN of the other withholding agent that actually withheld and deposited the tax (primary withholding agent) in boxes 14a and b.

If you must submit Form 1042-S, you must also submit Form 1042.

Special instructions for use of Chapter 3 Exemption Codes.   If an amount was withheld under chapter 4, you may also include a chapter 3 exemption code and tax rate in boxes 3a and 3b to show the rate that would otherwise apply if the payment was exempt from withholding under chapter 4. This may be done, for example, to assist the beneficial owner in pursuing a claim for refund. In such a case, do not check box 3 (only box 4 should be checked) to show that withholding was applied under chapter 4.

Boxes 3b and 4b, Tax Rate

Enter the correct rate of withholding that applies to the income in box 2 (gross income) or box 6 (net income), as appropriate. In the case of a payment subject to chapter 4 withholding, the correct rate of withholding is “30.00.” For purposes of chapter 3 withholding, see Valid Tax Rate Table, later. The correct tax rate should be included even if you withheld at a different rate. For example, if an NQI that is a participating FFI is reporting dividends paid to a beneficial owner who is exempt from withholding under chapter 4 and a resident of a country with which the United States does not have a tax treaty and a U.S. withholding agent paid the dividend and incorrectly withheld only 15% under chapter 3 (rather than the required 30%) and the NQI withholds an additional 15% under chapter 3, the NQI should report “30.00” in box 3b. See Example 2. in Multiple Withholding Agent Rule, earlier. The tax rate on dividends paid to a corporation created or organized in, or under the law of, the Commonwealth of Puerto Rico may be 10%, rather than 30%. See Pub. 515 for more information.

In the case of a specified Federal procurement payment subject to section 5000C, withholding, the correct rate of withholding is 2% or “02.00.” For Form 1042-S purposes, report tax withheld under section 5000C in box 3b as if the tax were a chapter 3 tax.

Enter the tax rate using the following format: two digits, a decimal, and two digits (for example,“30.00” for 30%). However, if the income is exempt from tax under a U.S. tax treaty or the Code, enter “00.00.” If the tax rate is less than 10%, enter a zero before the tax rate (for example, “04.00” for 4%).

If you withheld at more than one tax rate for a specific type of income that you paid to the same recipient, you must file a separate Form 1042-S, Copy A, for each amount to which a separate rate was applied.

Valid Tax Rate Table

00.00 08.00 20.00
02.00 10.00 25.00
04.00 12.00 27.50
04.90 12.50 28.00
04.95 14.00 30.00
05.00 15.00 35.00
07.00 17.50 39.60
Exception for central withholding agreements.   If you are the designated withholding agent who has entered into a central withholding agreement and you report an amount in box 2 using income code 43 (earnings as an artist or athlete-central withholding agreement), you do not have to enter a tax rate in box 3b but you must include a chapter 4 exemption code 16 (excluded nonfinancial payments) in box 4a.

Box 5, Withholding Allowance

This box should be completed only if the income code reported in box 1 is 16 (scholarship or fellowship grants), 17 (compensation for independent personal services), 18 (compensation for dependent personal services), 19 (compensation for teaching), 20 (compensation during studying and training), or 42 (earnings as an artist or athlete-no central withholding agreement). See Pub. 515 for more information.

Box 6, Net Income

Complete this box only if you entered an amount in box 5. Otherwise, leave it blank.

Boxes 7 Through 10, Federal Tax Withheld

Box 7.   Enter the total amount of U.S. federal tax you actually withheld in box 7 under chapter 3 or 4. If you did not withhold any tax, enter “-0-.” If you are a participating FFI or registered deemed-compliant FFI that, for chapter 4 purposes, applied the escrow procedure for dormant accounts, if the payment is also an amount subject to chapter 3 withholding and tax is withheld and deposited under chapter 3, do not check the box “Check if tax not deposited with IRS pursuant to escrow procedure.” Instead check box 3 and complete box 3b to report the tax withheld under chapter 3.

   A withholding agent that withheld tax during calendar year 2015 and that was not required to deposit with the IRS the tax withheld during calendar year 2015 pursuant to the escrow procedure under Regulations sections 1.1471-2(a)(5)(ii) and/or 1.1441-3(d) must check the box “Check if tax not deposited with IRS pursuant to escrow procedure.” A withholding agent reporting payments pursuant to the escrow procedure must report such payments on separate Forms 1042-S.

  
Box 7 must be completed in all cases, even if no tax has been deposited.

Box 8.   If you are a withholding agent filing a Form 1042-S to report income that has already been subject to withholding by another withholding agent, enter the amount actually withheld by the other agent(s) in box 8. Further, report in box 8 any credit forward of prior withholding as determined under Notice 2010-46 with respect to substitute dividend payments.

Box 9.   Enter the total amount of tax paid by you and not withheld from the payment to the recipient.

Box 10.   Enter in box 10 the total amount of tax withheld by you (box 7) and any other withholding agent (box 8), but do not include the amount reported in box 9.

Box 11, Amount Repaid to Recipient

This box should be completed only if:

  • You repaid a recipient during the 2016 calendar year under the reimbursement procedure (see instructions to Form 1042) an amount of tax that was overwithheld under chapter 3 or 4; and

  • You are going to reimburse yourself by reducing, by the amount of tax actually repaid to the recipient, the amount of any deposit made for a payment period in calendar year 2016.

If you applied the reimbursement or set-off procedure during the 2015 calendar year, do not complete box 11. Instead, reduce the amount of withholding reported in box 7.

In most cases, an intermediary or flow-through entity should not enter an amount in box 11 unless it is a QI that represented on its Form W-8IMY that it is assuming primary withholding responsibility or is a WP or WT.

In order to claim a credit for amounts overwithheld, you must timely file a Form 1042 to claim a credit for tax overwithheld and attach a statement that the filing of the Form 1042 constitutes a claim for refund.

The adjustment for amounts overwithheld does not apply to partnerships or nominees required to withhold under section 1446.

Box 12a, Withholding Agent's Employer Identification Number (EIN)

In most cases, you are required to enter your EIN. However, if you are filing Form 1042-S as a QI, WP, or WT, enter your QI-EIN, WP-EIN, or WT-EIN.

If you do not have an EIN, you can apply for one online at  
www.irs.gov/businesses/small or by telephone at 1-800-829-4933. Also, you can apply for an EIN by filing Form SS-4, Application for Employer Identification Number. File amended Forms 1042-S when you receive your EIN.

To get a QI-EIN, WP-EIN, or WT-EIN, submit Form SS-4 with your application for that status. (See the definitions for Qualified intermediary (QI), and Withholding foreign partnership (WP) or withholding foreign trust (WT) in Definitions, earlier, for more information.)

Boxes 12b and 12c, Withholding Agent's Chapter 3 and Chapter 4 Status Code

Enter the withholding agent status code(s) from the list of Recipient Codes, earlier. A chapter 4 status code is required only if the income reported in box 2 is a withholdable payment. A chapter 3 status code is not required if the income reported in box 2 is not an amount subject to chapter 3 withholding.

If you are a transfer agent or paying agent acting as a withholding agent on behalf of a payer (and therefore completing boxes 18-20), you must use the chapter 3 and 4 status codes applicable to the status of the payer.

Boxes 12d-12i, Withholding Agent's Name, GIIN, Country Code, Foreign TIN (if any), and Address

Enter your name and address in the appropriate boxes. If your post office does not deliver mail to the street address and you have a P.O. box, show the box number instead of the street address.

If you are a nominee that is the withholding agent under section 1446, enter the PTP's name and other information in boxes 15a through 15i.

Also, enter your chapter 3 and chapter 4 status codes to the extent applicable from Exemption Codes and Recipient Codes, earlier.

Note.

On statements furnished to individual recipients of U.S. source deposit interest, in addition to your name and address, you must include the telephone number of a person to contact. This number must provide direct access to an individual who can answer questions about the statement. The telephone number is not required on Copy A of paper forms or on electronically filed forms.

Box 12e, Withholding Agent's GIIN.   The GIIN provided, if any, should be the GIIN issued to the branch of, or disregarded entity owned by, the participating FFI or registered deemed-compliant FFI that is making the payment.

Boxes 13a and 13h, Recipient's U.S. Taxpayer Identification Number (TIN) and GIIN

You must obtain and enter a U.S. taxpayer identification number (TIN) for any of the following recipients.

  • Any recipient whose income is effectively connected with the conduct of a trade or business in the United States.

    Note.

    For these recipients, enter exemption code 01 in box 3a or exemption code 14 in box 4a.

  • Any foreign person claiming a reduced rate of, or exemption from, tax under a tax treaty between a foreign country and the United States, unless the recipient provides a foreign TIN (in such case, use box 13i), or unless the income is an unexpected payment (as described in Regulations section 1.1441-6(g)) or consists of dividends and interest from stocks and debt obligations that are actively traded; dividends from any redeemable security issued by an investment company registered under the Investment Company Act of 1940 (mutual fund); dividends, interest, or royalties from units of beneficial interest in a unit investment trust that are (or were, upon issuance) publicly offered and are registered with the Securities and Exchange Commission under the Securities Act of 1933; and amounts paid with respect to loans of any of the above securities. In the latter case, you must use income code 13, 51, 52, or 53.

  • Any nonresident alien individual claiming exemption from tax under section 871(f) for certain annuities received under qualified plans.

  • A foreign organization claiming an exemption from tax solely because of its status as a tax-exempt organization under section 501(c) or as a private foundation.

  • Any QI.

  • Any WP or WT.

  • Any nonresident alien individual claiming exemption from withholding on compensation for independent personal services.

  • Any U.S. branch of an FFI or territory FI that is treated as a U.S. person.

  • Any QSL that was paid a substitute dividend.

In all other cases, if you know the recipient's TIN or if a foreign person provides a TIN on Form W-8, but is not required to do so, you must include the TIN on Form 1042-S.

You must include a GIIN if you are required to collect a GIIN for the recipient under the requirements documenting the payee under chapter 4. If you make a payment to a disregarded entity or branch that is identified in Part II of Form W-8BEN-E, then report the GIIN of the disregarded entity or branch provided in that section.

Boxes 13b-g, Recipient's Status Code, Name, Country Code, and Address

Boxes 13b and 13c, Recipient Status Code.   Enter the recipient status code from the list of Recipient Status Codes, earlier. The following special instructions apply for chapter 3 status codes.
  • If applicable, use recipient code 22 (artist or athlete) instead of recipient code 16 (individual), 15 (corporation), or 08 (partnership other than withholding foreign partnership).

  • If you are making a payment to an NQI or flow-through entity, in most cases you must use the recipient code that applies to the type of recipient who receives the income from the NQI or flow-through entity.

  • Use recipient code 08 (partnership other than withholding foreign partnership) only if you are reporting a payment of income that is effectively connected with the conduct of a trade or business of a nonwithholding foreign partnership in the United States. Otherwise, follow the rules that apply to payments to flow-through entities.

  • Use recipient code 21 (unknown recipient) only if you have not received a withholding certificate or other documentation for a recipient or you cannot determine how much of a payment is reliably associated with a specific recipient. Do not use this code because you cannot determine the recipient's status as an individual, corporation, etc. The regulations under chapter 3 provide rules on how to determine a recipient's status when a withholding agent does not have the necessary information.

  • Use recipient code 13 (qualified securities lender – qualified intermediary) or 14 (qualified securities lender – other) if you make a payment to a QSL.

  • Only QIs may use recipient codes 29 (PAI withholding rate pool – general) and 30 (PAI withholding rate pool – exempt organizations). Only QIs, WPs, and WTs that made a pooled reporting election for chapter 3 purposes may use recipient codes 31 (agency withholding rate pool – general), 32 (agency withholding rate pool – exempt organization), 33 (joint account withholding rate pool), 27 (withholding rate pool – general), and 28 (withholding rate pool – exempt organization) for chapter 3 purposes. Recipient code 28 or 30 should be used only for pooled account holders that have claimed an exemption based on their tax-exempt status and not some other exemption (for example, treaty or other Code exception). Do not include a chapter 4 status code for the recipient if you are using a chapter 3 pooled reporting code as the recipient’s chapter 3 status code.

  • A U.S. withholding agent making a payment to a QI should use recipient code 12 and recipient code 09 or 11 if it is making a payment to a WP or WT, respectively.

  A chapter 4 status code is required only if the payment is a withholdable payment or when a participating FFI or registered deemed-compliant FFI provides a chapter 4 withholding rate pool of U.S. payees. The chapter 4 status code may be determined under the applicable intergovernmental agreement (IGA) by a withholding agent that is an FFI subject to such an agreement. The following special instructions apply for chapter 4 status codes.
  • Only use recipient code 15 (nonparticipating FFI) or 30 (recalcitrant account holder) if you are reporting directly to the recipient. See Amounts paid to a nonqualified intermediary or flow-through entity earlier. If you are reporting the chapter 4 reporting pools of recalcitrant account holders of a participating FFI, registered deemed-compliant FFI or QI, use codes 42 through 49. Only use chapter 4 reporting pool code 48 (U.S. payees pool) if a participating FFI or registered deemed-compliant FFI has provided a Form W-8IMY certifying that it meets the requirements to include the account holder in a withholding rate pool of U.S. payees and that is associated with a withholding statement allocating the payment or a portion of the payment to a chapter 4 withholding rate pool of U.S. payees. Only use chapter 4 reporting pool code 49 (QI-Recalcitrant Pool-General) if you are reporting recalcitrant account holders of a QI.

  • Use recipient code 26 (excepted NFFE – other) if you are reporting to an NFFE treated as a U.S. person.

  • Only use recipient code 29 (unknown recipient) if you have received a withholding certificate or other documentation with respect to a withholdable payment from an intermediary or flow-through entity. Only use this code if you also used recipient code 21 (unknown recipient) as the chapter 3 status code. If you have received a withholding certificate or other documentation from an intermediary or flow-through entity, you must include the entity’s information in boxes 15a through 15i.

  • Use recipient code 37 (undocumented preexisting obligation) for an obligation that a withholding agent has not documented and the payment being reported was made before the expiration of time period allowed for documenting the obligation and thus the withholding agent was not required to apply the presumption rules to determine the payee's chapter 4 status.

  • Use recipient code 39 (account holder of excluded financial account) if you are reporting amounts paid with respect to an obligation that is excluded from the definition of financial account for chapter 4 purposes (see Regulations section 1.1471-5(b)(2)).

  • Use recipient code 41 (NFFE subject to 1472 withholding) if you are reporting amounts paid to a specific recipient that is an NFFE that you (or another withholding agent) withheld upon under section 1472 (i.e., you are reporting amounts in boxes 7 through 9) unless the NFFE is treated as a recalcitrant account holder under Regulations section 1.1471-5(g), in which case, use code 30 (recalcitrant account holder).

  • Use recipient code 47 (nonparticipating FFI pool) if you received a withholding certificate or other documentation with respect to a withholdable payment from an intermediary or flow-through entity that is a participating FFI or deemed-compliant FFI (other than a WP, WT, or QI that assumes primary withholding responsibility) and cannot reliably associate the payment with documentation to determine the payee's chapter 4 status. You must also report the recipient as “Unknown Recipient” and include the entity's information in boxes 15a through 15i.

  • If you are a QI, WP, or WT reporting direct account holders, do not include a chapter 3 status code for the recipient if you are using a chapter 4 reporting pool code as the recipient’s chapter 4 status code.

Box 13d, Recipient's Name.   Enter the complete name of the recipient in box 13d.
  • If you do not know the name of the recipient, enter “Unknown Recipient.

  • If Form 1042-S is being completed by a QI, WP, or WT for a chapter 3 withholding rate pool, or chapter 4 withholding pool, enter “Withholding rate pool” if withholding under chapter 3 was applied or if chapter 4 withholding was applied, a description of the chapter 4 reporting pool (for example “Nonparticipating FFI Pool ”) in box 13d.

  • A withholding agent reporting payments made to a participating FFI or registered deemed-compliant FFI with respect to a chapter 4 reporting pool must include the name and address of the FFI in boxes 13d through 13g as well as the FFI's GIIN and country code. The GIIN reported must be the GIIN of the branch to whom the withholding agent is making the payment.

  • A QI reporting payments made to a PAI on a withholding rate pool basis must include the name and address of the PAI in boxes 13d through 13g.

Box 13e, Recipient's Country Code.   You must enter the code (from the list at IRS.gov) for the country of which the recipient claims residency under that country's tax laws. Enter “OC” (other country) only when the country of residence does not appear on the list or the payment is made to an international organization (for example, the United Nations). Enter “UC” (unknown country) only if the payment is to an unknown recipient. If you are making a payment to a QI, QSL, WP, or WT, or if you are a QI, QSL, WP, or WT and are making a payment to a QI, WP, or WT withholding rate pool, enter the country code of the QI, WP, or WT. Also, if you are making a payment to a participating FFI or registered deemed-compliant FFI's chapter 4 reporting pool, enter the country code of the participating FFI or registered deemed-compliant FFI or branch of or disregarded entity owned by such FFI receiving the withholdable payment and that was listed on Part II of either the Form W-8BEN-E or W-8IMY.

  
If exemption code 04 (exempt under tax treaty) appears in box 3a or if a reduced rate of withholding based on a tax treaty is entered in box 3b, the country code entered in box 13e must be a country with which the United States has entered into an income tax treaty.

Boxes 13f and 13g, address.   In most cases, you must enter a foreign address in boxes 13f and 13g. However, there are limited exceptions. For example, you may enter a U.S. address when reporting payments of scholarship or fellowship grants (income code 16).

  For addresses outside the United States or its commonwealths and possessions, follow the foreign country's practice for entering the postal code.

  For addresses within the United States, use the U.S. Postal Service 2-letter abbreviation for the state name. Do not enter “United States” or “U.S.

  If you want to enter the recipient's account number, use box 16.

Box 13i, Recipient's Foreign Tax Identifying Number

You must obtain and enter a foreign taxpayer identifying number for any of the following recipients:

  • Any foreign person claiming a reduced rate of, or exemption from, tax under a tax treaty between a foreign country and the United States if such person did not provide a U.S. TIN and the income is not the type for which an exemption from the TIN requirement applies (as described earlier).

  • Any recipient of a payment made with respect to an obligation maintained at a U.S. office or branch of the withholding agent if withholding agent is a financial institution and the foreign taxpayer identifying number is available in the withholding agent's electronically searchable information or is required to be collected by the withholding agent on Form W-8.

Use box 13i to enter the recipient's identifying number used in the recipient's country of residence for tax purposes. Box 13i is optional except as described above.

Note.

Starting in calendar year 2017, with respect to an obligation that a withholding agent that is a financial institution maintains at its U.S. office or branch, a withholding agent will be required to report either the recipient's foreign tax identification number or the recipient's date of birth. The recipient's foreign tax identification number will be required in box 13i if the recipient is resident in a country identified in the instructions for “Requester of Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY” as required to provide a foreign taxpayer identification number. In all other cases, the recipient's date of birth will be required in box 17.

Boxes 14a and 14b, Primary Withholding Agent's Name and EIN

If you reported amounts withheld by another withholding agent (the primary withholding agent), you must provide the name and EIN of the withholding agent that withheld the tax reported in box 8. If multiple withholding agents withheld amounts reported on the same Form 1042-S, report the name of any one of the withholding agents that withheld amounts. This information was optional for 2014 but is required for 2015 and subsequent years.

Boxes 15a Through 15i, Intermediary/Flow-Through Entity's Name, Status Code, Country Code, Address, EIN, GIIN, and Foreign Taxpayer Identification Number

If you are reporting amounts paid to a recipient whose withholding certificates or other documentation has been submitted to you with a Form W-8IMY provided by an intermediary or flow-through entity, you must include the name and address of the intermediary or flow-through entity with whose Form W-8IMY the recipient's Form W-8 or other documentation is associated.

You must also include the intermediary or flow-through entity's chapter 3 and chapter 4 status codes and, if any, the TIN and GIIN of the intermediary or flow-through entity when provided or required to be collected by the withholding agent. If the intermediary or flow-through completed Part II of Form W-8IMY, then report the GIIN provided in that section.

Note.

An intermediary or flow-through entity will leave these boxes blank unless it is making the payment to an intermediary or flow-through entity.

Box 15f, Country Code.   You must enter the country code (from the list at IRS.gov) for the country where the intermediary or flow-through entity is located.

Box 15g, Intermediary or Flow-Through Entity's Foreign Taxpayer Identification Number.   Use box 15g to enter the intermediary or flow-through entity's identifying number used in the country of residence for tax purposes. Box 15g is optional.

If you are a nominee that is the withholding agent under section 1446, enter the PTP's name and other information in these boxes.

Box 16, Recipient’s Account Number

If you are a financial institution reporting amounts paid to your direct account holder with respect to an account maintained by you at your U.S. office or branch, you must report the recipient’s account number in box 16. If the amount is paid through a nonqualified intermediary or flow-through entity, you are not required to use this box.

Box 17, Recipient’s Date of Birth

Use box 17 to enter the recipient’s date of birth if it is available in the withholding agent's electronically searchable information. Box 17 is optional.

Note.

Starting in calendar year 2017, the withholding agent will be required to report either the recipient's foreign tax identification number or the recipient's date of birth.

Boxes 18 Through 20, Payer's Name, Payer's TIN, and Payer's GIIN

See the definition of Payer in Definitions,earlier. Include the payer's name, TIN, and GIIN if different from the withholding agent shown in boxes 12a, d, and e.

If payment is being made by a transfer agent or a paying agent acting as a withholding agent on behalf of a payer, use the chapter 3 and 4 status codes applicable to the status of the payer when completing boxes 12b and 12c above.

Boxes 21 Through 23, State Income Tax Withheld and Related Information

Include in these boxes information relating to any state income tax withheld.

Amended Returns

If you filed a Form 1042-S with the IRS and later discover you made an error on it, you must correct it as soon as possible. To correct a previously filed Form 1042-S, you will need to file an amended Form 1042-S.

You may be required to submit amended Forms 1042-S electronically. See Electronic Reporting, earlier, and Pub. 1187.

If any information you correct on Form(s) 1042-S changes the information you previously reported on Form 1042, you also must correct the Form 1042 by filing an amended return. To do this, see the Form 1042 instructions.

If you are filing electronically, see Amended Returns in Pub. 1187.

If you are not filing electronically, follow these steps to amend a previously filed Form 1042-S.

Step 1.   Prepare a paper Form 1042-S.

  
  • Enter all the correct information on the form, including the recipient name and address, money amounts, and codes.

  • Enter an “X” in the amended box at the top of the form.

Amended checkbox.   Enter an “X” in the amended checkbox of Copy A only if you are amending a Form 1042-S you previously filed with the IRS. Enter an “X” in the amended checkbox on the copy you give to the recipient only if you are correcting a Form 1042-S previously furnished to the recipient. You must provide statements to recipients showing the corrections as soon as possible.

Step 2.   File the amended paper Form 1042-S with a Form 1042-T. See the Form 1042-T instructions for information on filing these forms.

  
If you fail to correct Form(s) 1042-S, you may be subject to a penalty. See Penalties, earlier.


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