Internal Revenue Bulletin:  2012-39 

September 24, 2012 

Rev. Proc. 2012-36


Table of Contents

Use this Revenue Procedure to prepare Tax Year 2012 and prior year information returns for submission to Internal Revenue Service (IRS) using electronic filing.

Caution to filers:
Please read this publication carefully. Persons or businesses required to file information returns electronically may be subject to penalties for failure to file or include correct information if the instructions in this Revenue Procedure are not followed.
Important notes:
The IRS internet connection for filing information returns electronically is http://fire.irs.gov and http://fire.test.irs.gov. The Filing Information Returns Electronically (FIRE) system and the test system will be down from 6 p.m. ET December 14, 2012, through January 02, 2013 for yearly updates. In addition, the FIRE system may be down every Wednesday from 2:00 a.m. to 5:00 a.m. ET for programming updates. The FIRE system will not be available for submissions during these times.
Form 4419, Application for Filing Information Returns Electronically (FIRE), is subject to review before the approval to transmit electronically is granted. IRS may require additional documentation. If a determination is made concerning the validity of the documents transmitted electronically, IRS has the authority to revoke the Transmitter Control Code (TCC) and terminate the release of the files.

The FIRE system does not provide fill-in forms for filing information returns.

Part A. General

Revenue Procedures are generally revised annually to reflect legislative and form changes. Comments concerning this Revenue Procedure, or suggestions for making it more helpful, can be addressed to:

  Internal Revenue Service  
  Attn: Information Returns Branch  
  230 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430  

Sec. 1. Purpose

Note

Note: Refer to Part A, Sec. 13, for definitions of terms and codes used in this publication.

.01 This Revenue Procedure supersedes Rev. Proc. 2011-50 published as Publication 1187 (Rev. 10/2011), Specifications for Filing Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Electronically.

.02 The purpose of this Revenue Procedure is to provide the specifications for filing Form 1042-S with IRS electronically through the IRS Filing Information Returns Electronically (FIRE) system. The system is designed to support the electronic filing of information returns only. This Revenue Procedure must be used to prepare current and prior year information returns filed beginning January 1, 2013, and received by IRS by December 31, 2013.

.03 All data received for processing will be given the same protection as individual income tax returns (Form 1040). IRS will process the data and determine if the records are formatted and coded according to this Revenue Procedure.

.04 Generally, the box names on the paper Form 1042-S correspond with the fields used to file electronically; however, if discrepancies occur, the instructions in this Revenue Procedure must be followed when filing electronically.

.05 The following Revenue Procedures and publications provide more detailed filing procedures for certain information returns:

  1. Instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding

  2. Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, 8935, W-2G and 1042-S

  3. Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Electronically

  4. Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, Electronically

  5. Publication 3609, Filing Information Returns Electronically (FIRE)

  6. Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons

  7. Publication 4810, Specifications for Filing Form 8955-SSA, Annual Registration Statement of Identifying Separated Participants With Deferred Vested Benefits, Electronically

.06 IRS does not process Forms W-2. Paper or electronic filing of Forms W-2 must be sent to SSA. IRS does, however, process Form 8508, Request for Waiver From Filing Information Returns Electronically (Forms W-2, W-2G, 1042-S, 1097-BTC, 1098 Series, 1099 Series, 3921, 3922, 5498 Series, and 8027) and Form 8809, Application for Extension of Time to File Information Returns for Forms W-2 as well as requests for an extension of time to provide the employee copies of Forms W-2.

.07 Specifications for filing Forms W-2, Wage and Tax Statements, electronically are available from the Social Security Administration (SSA) only. Filers can call 1-800-SSA-6270 to obtain the telephone number of the SSA Employer Service Liaison Officer for their area.

.08 Every withholding agent (defined in Part A, Sec. 13) must file an information return on Form 1042-S to report amounts of U.S. sourced income that was paid during the preceding calendar year. See Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities, for additional guidance on what is considered U.S. sourced income. Form 1042-S must be filed even if there was no tax withheld because the income was exempt from tax under a U.S. tax treaty or the Code. This includes the exemption for income that is effectively connected with the conduct of a trade or business in the United States, or the tax withheld was released to the recipient. Amounts paid to bona fide residents of U.S. possessions and territories are not subject to reporting on Form 1042-S if the beneficial owner of the income is a U.S. citizen, national, or resident alien.

Note

Caution: If filing Form 1042-S, Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, must also be filed. See Form 1042 for more information.

Sec. 2. What’s New for Tax Year 2012

.01 “Nature of Changes-Current Year” has been changed to “What’s New for Tax Year 2012”.

.02 The tax year must be updated with the four-digit reporting year (2011 to 2012), unless reporting prior year data.

.03 Form 4419, Application for Filing Information Returns Electronically (FIRE), must be submitted at least 45 days before the due date of the return(s) to allow IRS the minimum amount of time necessary to process and respond to applications.

.04 Income code 20 “Earnings as an Artist or Athlete” has been deleted.

.05 There are two new income codes. Use income code 42 for earnings as an artist or athlete if there is no central withholding agreement. Use income code 43 for earnings as an artist or athlete if there is a central withholding agreement.

.06 Added a Province Code chart in the Recipient “Q” Record, positions 336-337.

Reminders

In this publication, all titles of forms and publications and pertinent changes for Tax Year 2012 are emphasized by the use of italics. Portions of text that require special attention are in boldface text.

Filers are encouraged to read the publication in its entirety.

Sec. 3. Where To File and How to Contact the IRS, Information Returns Branch (IRB)

.01 All information returns filed through the FIRE system are processed at IRS. General inquiries concerning the electronic filing of Forms 1042-S may be sent to the following address:

  Internal Revenue Service  
  Information Returns Branch  
  Attn: 1042-S Reporting  
  230 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430  

.02 All requests for an extension of time to file information returns with IRS filed on Form 8809 or requests for an extension to provide recipient copies, and requests for undue hardship waivers filed on Form 8508 should be sent to the following address:

  Internal Revenue Service  
  Information Returns Branch  
  Attn: Extension of Time Coordinator  
  240 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430  

.03 The telephone numbers and web addresses for questions about specifications for electronic submissions are:

Internal Revenue Service
1-866-455-7438
Outside the U.S. 1-304-263-8700
 
Telecommunication Device for the Deaf (TDD)
1-304-579-4827
 
Fax
Within the U.S. — 1-877-477-0572
Outside the U.S. — 1-304-579-4105
 
Electronic Filing - FIRE system
Production URL — http://fire.irs.gov
Test URL — http://fire.test.irs.gov
To Obtain Forms:
By phone — 1-800-TAX-FORM (1-800-829-3676)
IRS.gov — Online Ordering for Information Returns and Employer Returns
http://www.irs.gov/formspubs/page/0,,id=10768,00.html

.04 The current Instructions for Form 1042-S have been included in Publication 1187 for the convenience of filers. The Form 1042-T is used only to transmit Copy A of paper Forms 1042-S. When filing paper returns, follow the mailing instructions on Form 1042-T and submit the paper returns to:

  Internal Revenue Service  
  Ogden Service Center  
  P.O. Box 409101  
  Ogden, UT 84409  

.05 Form 4419, Application for Filing Information Returns Electronically (FIRE), Form 8809, Application for Extension of Time to File Information Returns, and Form 8508, Request for Waiver From Filing Information Returns Electronically, may be faxed to IRS at 1-877-477-0572 or 1-304-579-4105.

.06 Electronic Products and Services Support, Information Returns Branch (IRB), answers electronic, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of information returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 8935, 5498, 8027, and W-2G). IRB also answers questions relating to the electronic filing of Forms 1042-S and 8955-SSA. Call 1-866-455-7438 or 1-304-263-8700 for specific information about electronic filing of Forms 1042-S, 8027, and 8955-SSA. Inquiries pertaining to backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers are also addressed by IRB. Assistance is available year-round to payers, transmitters, and employers, Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time, by calling 1-866-455-7438 or by email at mccirp@irs.gov. When sending emails concerning specific file information, include the company name and the electronic filename or Transmitter Control Code. Please do not submit TINs or attachments, because electronic mail is not secure and the information may be compromised. The Telecommunications Device for the Deaf (TDD) toll number is 1-304-579-4827. Call as soon as questions arise to avoid the busy filing seasons at the end of January, February, and March. Recipients of information returns (payees) should continue to contact 1-800-829-1040 with any questions on how to report the information returns data on their tax returns.

Note

Note: IRB assistors do not answer tax law questions concerning the requirements for withholding of tax on payments of U.S. source income to foreign persons under Chapter 3 of the Internal Revenue Code (IRC). If such assistance is needed, call 1-267-941-1000 (not a toll-free number) or write to:

  Internal Revenue Service  
  International Accounts  
  Philadelphia, PA 19255-0725.  

.08 Filers should not contact IRB if they have received a penalty notice and need additional information or are requesting an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or telephone number for contact purposes; or, the filer may be instructed to respond in writing to the address provided. IRB does not issue penalty notices and does not have the authority to abate penalties. For penalty information, refer to the Penalty section of the Instructions for Form 1042-S.

.09 Make requests for paper Forms 1042-S by calling the IRS at 1-800-TAX-FORM (1-800-829-3676) or ordering online from the IRS website at www.IRS.gov/formspubs .

.10 Questions pertaining to electronic filing of Forms W-2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-772-6270 to obtain the telephone number of the SSA Employer Service Liaison Officer for their area.

.11 A taxpayer or authorized representative may request a copy of a tax return, including Form W-2 filed with a return, by submitting Form 4506, Request for Copy of Tax Return, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829-3676). For any questions regarding this form, call 1-267-941-1000. This is not a toll-free number.

Sec. 4. Filing and Retention Requirements

.01 The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that any person, including a corporation, partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns electronically. Withholding agents who meet the threshold of 250 or more Forms1042-S are required to submit the information electronically.

Note

Note: Even though filers may submit up to 249 information returns on paper, IRS encourages filers to transmit those information returns electronically. Filers are encouraged to file information returns electronically even if they do not meet the required 250 information returns threshold.

.02 All filing requirements apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN), [Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN), or Qualified Intermediary Employer Identification Number (QI-EIN), Withholding Foreign Partnership Employer Identification Number (WP-EIN), Withholding Foreign Trust Employer Identification Number (WT-EIN) ]. For example, if a corporation with several branches or locations uses the same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.

.03 These requirements apply separately to both originals and amended records filed electronically.

.04 The requirements do not apply if the filer establishes undue hardship (See Part D, Sec. 5).

.05 Current and prior year data must be submitted in separate electronic transmissions. Each tax year must be a separate electronic file.

.06 Filers who have prepared their information returns in advance of the due date should submit this information to IRS no earlier than January 1 of the year the return is due.

.07 Do not report duplicate information. If a filer submits returns electronically, identical paper documents must not be filed. Duplicate filing may result in penalty notices being sent to recipients.

.08 Withholding agents should retain a copy of the information returns filed with the IRS or have the ability to reconstruct the data for at least three years from the due date of the returns.

Sec. 5. Vendor List - Publication 1582

.01 IRS maintains a list of vendors who support electronic filing. Publication 1582, Information Returns Vendor List, contains the names of service bureaus that will produce or submit files for electronic filing. It also contains the names of vendors who provide software packages for payers who wish to produce electronic files on their own computer systems. This list is compiled as a courtesy and in no way implies IRS approval or endorsement.

.02 If filers engage a service bureau to prepare files on their behalf, the filers must not also report this data, as it will create a duplicate filing situation which may cause penalty notices to be generated.

.03 Publication 1582 is updated periodically. The most recent revision is available on the IRS website at www.IRS.gov. For an additional list of software providers, log on to www.IRS.gov and type “Business e-file Providers” in the Search box.

.04 If you are a new vendor and would like to be listed in the online Publication 1582 or if you are listed and the information is incorrect or incomplete, submit a letter to the following address:

  Internal Revenue Service  
  Information Returns Branch  
  230 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430-5201  

The request should include:

  1. Company name

  2. Address (include city, state, and ZIP code)

  3. Telephone and FAX number (include area code)

  4. Email address

  5. Contact person

  6. Website

  7. Type(s) of service provided (for example, service bureau and/or software)

  8. Method of filing (only electronic filing is acceptable)

  9. Type(s) of return(s)

Sec. 6. Form 4419, Application for Filing Information Returns Electronically (FIRE)

.01 Transmitters are required to submit Form 4419, Application for Filing Information Returns Electronically (FIRE), to request authorization to file information returns with IRS. A single Form 4419 should be filed. IRS encourages transmitters who file for multiple withholding agents or qualified intermediaries to submit one application and to use the assigned Transmitter Control Code (TCC) for all. Form 4419 is subject to review before approval to transmit electronically is granted. IRS may require additional documentation. If a determination is made concerning the validity of the documents transmitted electronically, IRS has the authority to revoke the Transmitter Control Code (TCC) and terminate the release of files.

Note

Note: An additional Form 4419 is required for filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G. Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, and Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits, also require separate Forms 4419. See the back of Form 4419 for detailed instructions.

.02 Electronically filed returns may not be submitted to IRS until the application has been approved. Please read the instructions on the back of Form 4419 carefully. Form 4419 is included in Publication 1187 for the filer’s use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800-829-3676). The form is also available at www.IRS.gov .

.03 Upon approval, a five-character alphanumeric Transmitter Control Code (TCC) beginning with the digits “22” will be assigned and included in an approval letter. The TCC must be coded in the Transmitter “T” Record. If a transmitter uses more than one TCC to file, each TCC must be reported on a separate electronic transmission. Please make sure that electronic files are submitted using the correct TCC.

.04 If any of the information (Name, TIN or Address) on Form 4419 changes, please notify IRS in writing by fax or mail so the IRS database can be updated. The transmitter should include the TCC in all correspondence.

.05 Form 4419 may be submitted anytime during the year; however, it must be submitted to IRS at least 45 days before the due date of the return(s) for current year processing. This will allow IRS the minimum amount of time necessary to process and respond to applications. Form 4419 may be faxed to IRS at 877-477-0572 or 304-579-4105 (not toll-free). In the event that computer equipment or software is not compatible with IRS, a waiver may be requested to file returns on paper documents.

.06 IRS encourages a transmitter who files for multiple withholding agents to submit one application and to use the assigned TCC for all withholding agents.

.07 If a withholding agent’s files are prepared by a service bureau, it may not be necessary for the withholding agent to submit an application to obtain a TCC. Some service bureaus will produce files, code their own TCC on the file, and send it to IRS for the withholding agent. Other service bureaus will prepare electronic files for the withholding agent to submit directly to IRS. These service bureaus may require the withholding agent to obtain a TCC to be coded in the Transmitter “T” Record. Withholding agents should contact their service bureaus for further information.

.08 Once a transmitter is approved to file electronically, it is not necessary to reapply each year unless:

  1. The withholding agent has discontinued filing electronically for two consecutive years; the withholding agent’s TCC may have been reassigned by IRS. Withholding agents who are aware that the TCC assigned will no longer be used are requested to notify IRS so these numbers may be reassigned;

  2. The withholding agent’s electronic files were transmitted in the past by a service bureau using the service bureau’s TCC, but now the withholding agent has computer equipment compatible with that of IRS and wishes to prepare his or her own files. The withholding agent must request a TCC by filing Form 4419.

.09 One Form 4419 may be submitted per TIN. Multiple TCCs will only be issued to withholding agents with multiple TINs. Only one TCC will be issued per TIN unless the filer has checked the application for the following forms in addition to the Form 1042-S: Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, 8935, 8955-SSA and/or 8027. A separate TCC will be assigned for these forms.

.10 Approval to file does not imply endorsement by IRS of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor.

Sec. 7. Due Dates

.01 The due dates for filing paper returns with IRS also applies to electronic filing of Form 1042-S. Filing of these returns is on a calendar year basis.

.02 Form 1042-S filed electronically must be submitted to IRS on or before March 15.

.03 If any due date falls on a Saturday, Sunday, or legal holiday, the return or statement is considered timely if filed or furnished on the next day that is not a Saturday, Sunday, or legal holiday.

.04 Statements to recipients must be postmarked on or before March 15.

Sec. 8. Validation of Information Returns at IRS Service Center

.01 The accuracy of data reported on Form 1042-S is reviewed and validated at the IRS Service Center. All fields indicated as “Required” in the record layouts in Part C must contain valid information. If the Service identifies an error, filers will be notified and required to provide correct information.

.02 Be sure to review Notice 2006-35, 2006-14 I.R.B. 708 for know-your-customer rules.

.03 The tax rate entered must be a valid tax rate based on the Internal Revenue Code or on a valid treaty article. The valid treaty rate is based on the recipient’s country of residence for tax purposes. The rate selected must be justified by the appropriate treaty. A valid Tax Rate Table is located in the Instructions for Form 1042-S.

.04 The Gross Income amount field must reflect pretax income. The Gross Income amount is the total income paid before any deduction of tax at source. This amount field must be reported in whole dollars only, rounding to the nearest dollar amount.

.05 If a qualified intermediary, withholding foreign partnership, or withholding foreign trust is acting as such, either as a withholding agent or as a recipient, the TIN reported must be a QI-EIN, WP-EIN, or WT-EIN and must begin with “98.” See the definition of a QI in Part A, Sec 13 or in the Instructions for Form 1042-S.

.06 Country Codes used must be valid codes taken from the Country Code Table. Generally, the use of “OC” or “UC” will generate an error condition. If a recipient is claiming treaty benefits, the Country Code can never be “OC” or “UC”.

.07 If a recipient is an “UNKNOWN RECIPIENT” or “WITHHOLDING RATE POOL,” no address should be present. These are the only two situations where a street address is not required.

.08 A U.S. TIN for a recipient is now generally required, particularly for most treaty benefits. The exceptions are very limited and are listed in Publication 515 and the current Instructions for Form 1042-S. Use recipient U.S. TIN type indicator 4 when a U.S. TIN is required but was not provided. Reduced tax rates are not applicable when using the TIN type 4 indicator.

.09 Apply the following formulas to determine U.S. Federal Tax Withheld (field positions 359-370 of the Recipient “Q” Record). Applying the formulas will determine what the correct amount of withholding should be. If a different amount was withheld, enter the amount that was actually withheld. The U.S. Federal Tax Withheld amount must be added to Withholding by Other Agents (field positions 371-382) and the total of the two fields will be reflected in the Total Withholding Credit (field positions 383-394). Also, ensure the appropriate indicator is used in position 761 (U.S. Federal Tax Withheld Indicator). All field positions described below are in the Recipient “Q” Record.

Income Codes (15, 16, 17, 18, 19 and 42) All Other Income Codes
Gross Income (positions 6-17) Gross Income (positions 6-17)
− Withholding Allowance (positions 18-29) Χ Tax Rate (positions 42-45)
= Net Income (positions 30-41) = U.S. Federal Tax Withheld (positions 359-370)
Χ Tax Rate (positions 42-45)  
= U.S. Federal Tax Withheld (positions 359-370)  

.10 The following is how to correctly report an Unknown Recipient. All entries are in the Recipient “Q” Record.

  1. Tax Rate (positions 42-45) must be 3000.

  2. Exemption Code (positions 46-47) is 00.

  3. Recipient Code (positions 92-93) is 20.

  4. Recipient’s Name Line-1 (positions 94-133) must have “UNKNOWN” or “UNKNOWN RECIPIENT.”

  5. Recipient’s Name Line-2 (positions 134-173) must be blank.

  6. Recipient’s address (positions 214-337) must be blank.

  7. Recipient’s Country Code (positions 338-339) is UC.

.11 When making a payment to an international organization (such as, United Nations) or a tax-exempt organization under IRC 501(a), use Country Code “OC.” Use “UC” only when there is an “UNKNOWN RECIPIENT.”

.12 When using Exemption Code 4, the Recipient Country of Residence Code for Tax Purposes MUST be a VALID treaty country (for example, if the recipient is a tax resident of Northern Ireland use United Kingdom). Do not use Exemption Code 4 unless the exemption of tax is based on a treaty claim. If the tax treaty reduces the tax rate but does not exempt the payment, enter 00 or blanks for the exemption code as indicated in the “Q” Record instructions for positions 46-47.

.13 Generally, payments under Income Codes 06 and 08 are not exempt from withholding, however, certain exceptions apply. See the Instructions for Form 1042-S.

.14 If income is from gambling winnings (Income Code 28) or is not specified (Income Code 50), the tax rate must generally be 30%. This type of income is only exempt from withholding at source if the exemption is based on a tax treaty. These treaties are listed in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

.15 If Income Code 42 or 43 (Earnings as an Artist or Athlete) is used, the Recipient Code must be 09. Do not use Recipient Code 01 (Individual), 02 (Corporation), or 03 (Partnership). Generally, the tax rate cannot be reduced even if a treaty may apply. If compensation that otherwise would be covered under Income Codes 16 through 19 is directly attributable to the recipient’s occupation as an artist or athlete, use Income Code 42 or 43 instead.

.16 When paying scholarship and fellowship grants (Income Code 15), the Recipient’s Country of Residence for Tax Purposes must be identified and cannot be “OC” or “UC.” Grants that are exempt under Code Section 117 are not required to be reported on Form 1042-S.

Note

Note: Grants that are exempt under IR Code 117 include only the amounts provided for tuition, fees, books, and supplies to a qualified student. Amounts provided for room and board can only be exempted under a tax treaty and must be reported on Form 1042-S whether exempt from tax or not.

.17 If a student is receiving compensation (Income Code 19), or a teacher, or a researcher is receiving compensation (Income Code 18), all or part of which is exempted from tax under a tax treaty, the Country of Residence for Tax Purposes must be identified and cannot be “OC” or “UC.”

Sec. 9. Amended Returns

.01 If a Form 1042-S was filed with the IRS and the filer later discovered an error in the filing, an amended Form 1042-S must be filed as soon as possible.

Note

Note: If any information amended on Form(s) 1042-S changes the information previously reported on Form 1042, the filer must also correct the Form 1042 by filing an amended return.

.02 The electronic filing requirement for information returns of 250 or more applies separately to both original and amended returns.

E X A M P L E If a withholding agent has 100 Forms 1042-S to be amended, they can be filed on paper because they fall under the 250 threshold. However, if the withholding agent has 300 Forms 1042-S to be amended, they must be filed electronically because they exceed the 250 threshold. If for some reason a withholding agent cannot file the 300 amended returns electronically, to avoid penalties, a request for a waiver must be submitted before filing on paper. If a waiver is approved for original documents, any amended returns for the same type of return will be covered under that waiver.

.03 Amended returns should be filed as soon as possible. Amended returns filed after August 1 may be subject to the maximum penalty of $100 per return. Amended returns filed by August 1 may be subject to a lesser penalty. For information on penalties, refer to the Penalty section of the current paper Instructions for Form 1042-S. However, if a withholding agent discovers errors after August 1, the withholding agent is still required to file amended returns or be subject to a penalty for intentional disregard of the filing requirements. If a record is incorrect, all fields on that record must be completed with the correct information. Submit amended returns only for the returns filed in error. Do not submit the entire file. Furnish amended statements to recipients as soon as possible.

Note

Note: Do not include original returns and amended returns in the same electronic file.

.04 If filers discover that certain information returns were omitted on their original file, they must not code these documents as amended returns. The file must be coded and submitted as an original file.

.05 Prior year data, original and amended, must be filed according to the requirements of this Revenue Procedure. If submitting prior year amended returns, use the record format for the current year and submit in a separate transmission. Use the actual year designation of the amended return in Field Positions 2-5 of the Transmitter “T” Record. A separate electronic transmission must be made for each tax year.

.06 In general, filers should submit amended returns for returns filed within the last 3 calendar years.

.07 All paper returns, whether original or amended, must be filed with:

  Internal Revenue Service  
  Ogden Service Center  
  P.O. Box 409101  
  Ogden, UT 84409  

.08 The Recipient “Q” Record provides a 20-position field (positions 72-91) for the recipient’s account number assigned by the withholding agent. This number should be included on the initial return and on the amended return. This is especially important when more than one information return of the same type is reported for a recipient. The account number is used by IRS to determine which information return is being amended. It is vital that each information return reported for a recipient have a unique account number. Do not enter a TIN in this field.

.09 The record sequence for filing amended returns is the same as for original returns.

.10 Following is a chart showing the steps to take when amending Form 1042-S:

Guidelines for Filing Amended Returns Electronically
One transaction is required to make the following corrections properly.
Error Made on the Original Return How To File the Amended Return
ERROR TYPE 1 CORRECTION
1. Original return was filed with one or more of the following errors: A. Prepare a new file. The first record on the file will be the Transmitter “T” Record.
  (a) Incorrect money amount (b) Incorrect codes and/or check boxes (c) Incorrect address (d) Form 1042-S submitted in error - should not have been submitted

Note 1: If a Form 1042-S was submitted in error, all fields must be exactly the same as the original record except all money amounts must be zeros.
B. Make a separate “W” Record for each withholding agent being reported with a Return Type Indicator of “1” (1 = Amended) in field position 2. Enter a “G” (Amended Return Indicator) in position 810.
  C. The Recipient “Q” Records must show the correct record information with a Return Type Indicator of “1” for amended in field position 2. (See Note 1.) Enter a “G” (Amended Return Indicator) in position 810.
  D. Prepare a separate Reconciliation “C” Record for each withholding agent (“W” Record) being reported summarizing the preceding amended “Q” Records.
  E. The last record on the file will be the End of Transmission “F” Record.
File layout one step corrections
Transmitter “T” Record Amended coded Withholding Agent “W” Record Amended coded Recipient “Q” Record Amended coded Recipient “Q” Record Reconciliation “C” Record End of Transmission “F” Record
Guidelines for Filing Amended Returns Electronically
Two (2) separate transactions (files) are required to make the following corrections properly. Follow the guidelines for both Transactions 1 and 2. Do not use the two step correction process to correct money amounts.
Error Made on the Original Return How To File the Amended Return
ERROR TYPE 2 CORRECTION
1. Original ”Q” Records were filed with one or more of the following errors: Transaction 1: Identify incorrect returns.
  (a) No Recipient TIN (SSN, EIN, ITIN, QI-EIN) (b) Incorrect Recipient TIN (c) Incorrect Recipient name (d) Incorrect Recipient name and address

Note 2: The Record Sequence Number will be different since this is a counter number and is unique to each file.
A. Prepare a new file. The first record on the file will be the Transmitter “T” Record.
  B. Make a separate “W” Record for each withholding agent being reported. The information in the “W” Record will be exactly the same as it was in the original submission except for the Return Type Indicator of “1” (1 = Amended) in field position 2 and the Amended Return Indicator in position 810 must be a “G”. (See Note 2.)
      C. The Recipient “Q” Records must contain exactly the same information as submitted previously, except, insert the Amended Return Indicator Code of “1” in Field Position 2 of the “Q” Records, and enter “0” (zeros) in all payment amounts. Enter the Return Type Indicator of “1” in position 2 and the Amended Return Indicator of “G” in position 810 of all “Q” Records. (See Note 2.)
      D. Prepare a separate Reconciliation “C” Record for each withholding agent being reported summarizing the preceding “Q” Records.
      E. Continue with Transaction 2 to complete the correction. (See Note 3.)
         
    Note 3: Step 1 and Step 2 can be included in the same electronic file. If separate files for Step 1 and Step 2 are submitted, each file must have a complete set of “T, W, Q, C and F” records. Transaction 2: Report the correct information.
       
    A. Make a separate “W” Record for each withholding agent being reported. The Return Type Indicator must be “1” in position 2. The Amended Indicator of “C” must be entered in position 810.
    B. The Recipient “Q” Records must show the correct information. The Return Type Indicator in position 2 must be “1” and the Amended Return Indicator must be “C”.
    C. Prepare a separate Reconciliation “C” Record for each withholding agent being reported summarizing the preceding “Q” Records.
    D. The last record on the file will be the End of Transmission “F” Record.
File layouts two step corrections

STEP 1 FILE

Transmitter “T” Record Amended coded Withholding Agent “W” Record Amended coded Recipient “Q” Record Amended coded Recipient “Q” Record Amended coded Recipient “Q” Record Reconciliation “C” Record

STEP 2 FILE

Amended coded Withholding Agent “W” Record Amended coded Recipient “Q” Record Amended coded Recipient “Q” Record Amended coded Recipient “Q” Record Reconciliation “C” Record End of Transmission “F” Record

.11 When correcting the Withholding Agent “W” Record, follow the two step correction process. When the “W” Record is being corrected, every Recipient “Q” Record reported under that incorrect “W” Record must be amended by zero filling all of the amount fields as described in Error Type 2, Transaction 1.

.12 For information on when an amended Form 1042 is required, refer to the Instructions for Form 1042.

Sec. 10. Taxpayer Identification Number (TIN)

.01 Section 6109 of the Internal Revenue Code establishes the general requirements under which a person is required to furnish a U.S.TIN to the person obligated to file the information return.

.02 The Withholding Agent must provide its EIN, QI-EIN, WP-EIN or WT-EIN as appropriate, in the “W” Record and “T” Record, if the Withholding Agent is also the transmitter.

.03 A recipient U.S.TIN (SSN, ITIN, EIN, QI-EIN, WP-EIN, WT-EIN) must be provided on every “Q” Record when:

  1. The tax rate is less than 30% (See the Instructions for Form 1042-S for exceptions.)

  2. The income is effectively connected with the conduct of a trade or business in the United States

  3. A recipient claims tax treaty benefits (generally)

  4. The recipient is a Qualified Intermediary

  5. An NRA individual is claiming exemption from withholding on independent personal services

  6. Other situations may apply, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities

.04 In the event the recipient does not have a U.S.TIN, the withholding agent should advise the recipient to take the necessary steps to apply for one.

.05 The recipient’s U.S.TIN and name combination are used to associate information returns reported to IRS with corresponding information on the recipient’s tax return. It is imperative that correct U.S.Taxpayer Identification Numbers (TINs) for recipients be provided to IRS. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.

.06 The withholding agent and recipient names with associated TINs should be consistent with the names and TINs used on other tax returns.

Note

Note: A withholding agent must have a valid EIN, QI-EIN, WP-EIN, and/or WT-EIN. It is no longer valid for a withholding agent to use SSNs and ITINs.

Sec. 11. Effect on Paper Returns and Statements to Recipients

.01 Electronic reporting of Form 1042-S eliminates the need to submit paper documents to the IRS.

Note

CAUTION: Do not send Copy A of the paper forms to the IRS for any forms filed electronically. This may result in duplicate filing.

.02 Withholding agents are responsible for providing statements to the recipients as outlined in the current Instructions for Form 1042-S. Refer to the Instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding for guidance on furnishing statements to recipients.

.03 Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications and guidelines in Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns.

.04 The address for filing paper Forms 1042-S and Form 1042 is:

  Internal Revenue Service  
  Ogden Service Center  
  P.O. Box 409101  
  Ogden, UT 84409  

Do not send paper Forms 1042-S or 1042 to IRB.

Sec. 12. Penalties Associated With Information Returns

.01 The following penalties generally apply to the person required to file information returns. The penalties apply to electronic filers as well as to paper filers.

.02 Failure To File Correct Information Returns by the Due Date (Section 6721). If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if, you fail to file timely, if you fail to include all information required to be shown on a return, or if you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

The amount of the penalty is based on when you file the correct information return. The penalty is:

  • $30 per information return if you correctly file within 30 days of the due date of the return (See Part A, Sec. 7.02); maximum penalty $250,000 per year ($75,000 for small businesses).

  • $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses).

  • $100 per information return if you correctly file after August 1 or you do not file required information returns; maximum penalty $1.5 million per year ($500,000 for small businesses).

.03 A late filing penalty may be assessed for a replacement file which is not transmitted by the required date. See Part B, Sec. 4.05, for more information on replacement files.

.04 Intentional disregard of filing requirements. If failure to file a correct information return is due to intentional disregard of the filing or correct information requirements, the penalty is at least $250 per information return with no maximum penalty.

.05 Failure To Furnish Correct Payee Statements (Section 6722). Refer to Instruction for Form 1042-S for information regarding penalties which may apply for a failure to furnish correct payee statements.

Sec. 13. Definition of Terms

Element Description
Amended Return An amended return is an information return submitted by the transmitter to amend an information return that was previously submitted to and processed by IRS, but contained erroneous information.
Beneficial Owner The beneficial owner of income is, generally, the person who is required under U.S. tax principles to include the income in gross income on a tax return. For additional information and special conditions see Definitions in the Instructions for Form 1042-S.
Employer Identification Number (EIN) A nine-digit number assigned by IRS for federal tax reporting purposes.
Electronic Filing Submission of information returns electronically by the Internet. See Part B of this publication for specific information on electronic filing.
File For purposes of this Revenue Procedure, a file consists of one Transmitter “T” Record at the beginning of the file, a Withholding Agent “W” Record, followed by the Recipient “Q” Record(s), a Reconciliation “C” Record summarizing the number of preceding “Q” Records and total of preceding money fields. Follow with any additional “W”, “Q”, and “C” Record sequences as needed. The last record on the file is the End of Transmission “F” Record. Nothing should be reported after the End of Transmission “F” Record.
Filer Person (may be withholding agent and/or transmitter) submitting information returns to IRS.
Filing Year The calendar year in which the information returns are being submitted to IRS.
Flow-Through Entity A flow-through entity is a foreign partnership (other than a withholding foreign partnership) or a foreign simple or grantor trust (other than a withholding foreign trust). For any payments for which a reduced rate withholding under an income tax treaty is claimed, any entity is considered to be a flow-through entity if it is considered to be fiscally transparent under IRC Section 894 with respect to the payment by an interest holder’s jurisdiction.
Foreign Person A foreign person includes a nonresident alien individual, a foreign corporation, a foreign partnership, a foreign trust, a foreign estate, and any other person who is not a U.S. person. The term also includes a foreign branch or office of a U.S. financial institution or U.S. clearing organization, if the foreign branch is a Qualified Intermediary. Generally, a payment to a U.S. branch of a foreign institution is a payment to a foreign person.
Gross Income Gross income includes income from all sources, except certain items expressly excluded by statute. Gross income is the starting point for computing adjusted gross income and taxable income.
Individual Taxpayer Identification Number (ITIN) A nine-digit number issued by IRS to individuals who are required to have a U.S. taxpayer identification number for tax purposes but are not eligible to obtain a Social Security Number (SSN). An ITIN may be used for tax purposes only.
Information Return The vehicle for withholding agents to submit required tax information about a recipient to IRS. For this Revenue Procedure, it is information about a foreign person’s U.S. source income subject to withholding, and the information return is Form 1042-S.
Intermediary An intermediary is a person who acts as a custodian, broker, nominee, or otherwise as an agent for another person, regardless of whether that other person is the beneficial owner of the amount paid, a flow-through entity, or another intermediary.
Nonqualified Intermediary (NQI) A Nonqualified Intermediary is a foreign intermediary who is not a U.S. person and is not a Qualified Intermediary.
Payer A payer is the person for whom the withholding agent acts as a paying agent pursuant to an agreement whereby the withholding agent agrees to withhold and report a payment.
Presumption Rules The presumption rules are those rules prescribed under Chapter 3 and Chapter 61 of the Internal Revenue Code that a withholding agent must follow to determine the status of a beneficial owner as a U.S. or foreign person when it cannot reliably associate a payment with valid documentation.
Pro-Rata Basis Reporting If the withholding agent has agreed that an NQI may provide information allocating a payment to its account holders under the provisions of Regulations section 1.1441-1(e) (3) (iv) (D), and the NQI fails to allocate payment in a withholding rate pool to the specific recipients in the pool, the withholding agent must file a Form 1042-S for each recipient on a pro-rata basis.
Qualified Intermediary (QI) A Qualified Intermediary is a foreign intermediary who is a party to a withholding agreement with the IRS, in which it agrees to comply with the relevant terms of Chapters 3 and 61 of the Internal Revenue Code and is in a country with approved know your- customer rules. See Notice 2006-35.
Qualified Intermediary Employer Identification A nine-digit number assigned by IRS to a QI for Federal tax reporting purposes. A QI-EIN is only to be used when a QI is acting as a qualified intermediary.
Recipient Person (nonresident alien individual, fiduciary, foreign partnership, foreign corporation, Qualified Intermediary, Withholding Rate Pool, or other foreign entity) who receives payments from a withholding agent as a beneficial owner or as a qualified intermediary acting on behalf of a beneficial owner. A non-qualified intermediary cannot be a recipient.
Replacement File A replacement file is an information return file sent by the filer at the request of IRS because of certain errors encountered while processing the filer’s original submission.
Service Bureau Person or organization with whom the withholding agent has a contract to prepare and/or submit information return files to IRS. A parent company submitting data for a subsidiary is not considered a service bureau.
Social Security Number (SSN) A nine-digit number assigned by the Social Security Administration to an individual for wage and tax reporting purposes.
Special Character Any character that is not a numeric, an alpha, or a blank. The only special characters that are acceptable within an electronic file are ampersand (&), hyphen (-), comma (,), apostrophe (’), forward slash (/), pound sign (#), period (.), and the percent (%).
Taxpayer Identification Number (TIN) Refers to either an Employer Identification Number (EIN), Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or a Qualified Intermediary Employer Identification Number (QI-EIN).
Tax Year The year in which payments were made by a withholding agent to a recipient.
Transmitter Refers to the person or organization submitting file(s) electronically. The transmitter may be the payer, agent of the payer, or withholding agent.
Transmitter Control Code (TCC) A five-character alphanumeric number assigned by IRS to the transmitter prior to filing electronically. An application Form 4419 must be filed with IRS to receive this number. This number is inserted in the Transmitter “T” Record (field positions 190-194) of the file and must be present before the file can be processed. Transmitter Control Codes assigned to 1042-S filers will always begin with “22”.
Unknown Recipient For this Revenue Procedure, an unknown recipient is a recipient for whom no documentation has been received by a withholding agent or intermediary or for which documentation received cannot be reliably associated. This includes incomplete documentation. An unknown recipient is always subject to withholding at the maximum applicable rate. No reduction of or exemption from tax may be applied under any circumstances.
Vendor Vendors include service bureaus that produce information return files for withholding agents. Vendors also include companies that provide software for those who wish to produce their own electronic files.
Withholding Agent Any person, U.S. or foreign, who has control, receipt, or custody of an amount subject to withholding or who can disburse or make payments of an amount subject to withholding. The withholding agent may be an individual, corporation, partnership, trust, association, or any other entity. The term withholding agent also includes, but is not limited to, a qualified intermediary, a nonqualified intermediary, a withholding foreign partnership, a withholding foreign trust, a flow-through entity, a U.S. branch of a foreign insurance company or foreign bank that is treated as a U.S. person, and an authorized foreign agent. A person may be a withholding agent under U.S. law even if there is no requirement to withhold from a payment or even if another person has already withheld the required amount from a payment.
Withholding Foreign Partnership (WP) or Withholding Foreign Trust (WT) A foreign partnership or trust that has entered into a withholding or Withholding Foreign Trust agreement with the IRS in which it agrees to assume primary withholding responsibility for all payments that are made to it for its partners, beneficiaries, or owners.

Sec. 14. State Abbreviations

.01 The following state and U.S. territory abbreviations must be used when developing the state code portion of address fields. This table provides state and territory abbreviations.

Table 4: State & U.S. Territory Abbreviations
State Code State Code State Code
Alabama AL Kentucky KY Ohio OH
Alaska AK Louisiana LA Oklahoma OK
American Samoa AS Maine ME Oregon OR
Arizona AZ Maryland MD Pennsylvania PA
Arkansas AR Massachusetts MA Puerto Rico PR
California CA Michigan MI Rhode Island RI
Colorado CO Minnesota MN South Carolina SC
Connecticut CT Mississippi MS South Dakota SD
Delaware DE Missouri MO Tennessee TN
District of Columbia DC Montana MT Texas TX
Florida FL Nebraska NE Utah UT
Georgia GA Nevada NV Vermont VT
Guam GU New Hampshire NH Virginia VA
Hawaii HI New Jersey NJ (U.S.) Virgin Islands VI
Idaho ID New Mexico NM Washington WA
Illinois IL New York NY West Virginia WV
Indiana IN North Carolina NC Wisconsin WI
Iowa IA North Dakota ND Wyoming WY
Kansas KS No. Mariana Islands MP    

.02 When reporting APO/FPO addresses, use the following format:

  EXAMPLE:  
  Recipient Name: PVT Willard J. Doe  
  Mailing Address: Company F, PSC Box 100 167 Infantry REGT  
  Recipient City: APO (or FPO)  
  Recipient State: AE, AA, or AP*  
  Recipient ZIP Code: 098010100  
  *AE is the designation for ZIP codes beginning with 090-098, AA for ZIP code 340, and AP for ZIP codes 962-966.  

Part B. Electronic Filing Specifications

Note

Note 1: The Filing Information Returns Electronically (FIRE) system does not provide fill-in forms, except for Form 8809, Application for Extension of Time to File Information Returns. Filers must program files according to the Record Layout Specifications contained in this publication. For a list of software providers, log on to www.IRS.gov and type “Business e-file Providers” in the search box. (See Part A, Sec. 5.)

Note

Note 2: The FIRE system has scheduled downtime every Wednesday from 2:00 a.m. to 5:00 a.m. (ET) for programming updates and for two weeks at the end of December for yearly updates. The FIRE system will not be available for submissions during these times.

Sec. 1. General

.01 Electronic filing of Form 1042-S (originals, amended and replacement files) is a reporting method for filers submitting 250 or more Forms 1042-S. Payers who are under the filing threshold requirement are encouraged to file electronically.

.02 All electronic filing of information returns are received at IRS through the Filing Information Returns Electronically (FIRE) system. To connect to the FIRE system, point the browser to http://fire.irs.gov. The system is designed to support the electronic filing of information returns only.

.03 For files submitted through the FIRE system, it is the responsibility of the filer to check the status of the file within five business days to verify the results of the transmission. Information about the errors including the number of errors, a description, and the first occurrence will be provided on the FIRE system. If additional information is needed to understand the errors, the filer can call 1-866-455-7438 or outside the U.S. at 1-304-263-8700.

.04 The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain separate approval to participate in each program. Only inquiries concerning electronic filing of information returns should be directed to IRB.

.05 Files submitted to IRS electronically must be in standard ASCII code. See Part C, Record Format Specifications and Record Layouts, for the proper record format. Do not send paper forms with the same information as electronically submitted files. This may create duplicate reporting resulting in penalty notices.

.06 Form 8809, Application for Extension of Time to File Information Returns, is available as a fill-in form on the FIRE system. Filers that do not already have a User ID and password should refer to Part B, Sec. 7. At the Main Menu, click “Extension of Time Request” and then click “Fill-in Extension Form.” This option is only used to request an automatic 30-day extension and must be completed by the due date of the return for each withholding agent requesting an extension. Print the approval page for your records. Refer to Part D for additional details.

Sec. 2. Electronic Filing Approval Procedure

.01 Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Refer to Part A, Sec. 6, for information on how to obtain a TCC.

.02 Once a TCC is obtained, electronic filers must create their own user ID, password, and Personal Identification Number (PIN). See Part B, Sec. 5, for more information on the PIN requirements.

.03 If a filer is submitting files for more than one TCC, it is not necessary to create a separate User ID and password for each TCC.

.04 All passwords must remain confidential. It is the user’s responsibility to remember the password and not allow the password to be compromised. Passwords are created by the user during the first logon and must be eight alphanumeric characters containing at least one uppercase, one lowercase, and one numeric. The FIRE system requires users to change passwords every 90 days or at the first logon attempt after that time period. Users can change passwords at any time from the Main Menu. The previous 24 passwords cannot be used. Filers who forget the password or PIN may call 1-866-455-7438 or outside the U.S. at 1-304-263-8700 for assistance.

Sec. 3. Test Files

.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to test hardware and software. If filers wish to submit an electronic test file for Tax Year 2012 (returns to be filed in 2013), it must be submitted to IRS no earlier than November 1, 2012, and no later than February 15, 2013.

.02 IRS encourages all electronic filers to submit a test. To connect to the FIRE test system, point the browser to http://fire.test.irs.gov.

.03 The test file must consist of a sample of each type of record:

  1. (a) Transmitter “T” Record

  2. (b) Withholding Agent “W” Record

  3. (c) Multiple Recipient “Q” Records (at least 11 recommended)

  4. (d) Reconciliation “C” Record

  5. (e) End of Transmission “F” Record

.04 Use the Test Indicator “TEST” (upper case) in Field Positions 195-198 of the “T” Record to show this is a test file.

.05 IRS will check the file to ensure it meets the specifications of this Revenue Procedure. For current filers, sending a test file will provide the opportunity to ensure the software reflects all required programming changes. Filers are reminded that not all validity, consistency, or math error tests will be conducted.

.06 Filers who encounter problems while transmitting the electronic test file can contact IRS at 1-866-455-7438 or outside the U.S. at 1-304-263-8700 for assistance.

.07 Within five days after a file has been submitted, filers will be notified by email as to the acceptability of the file if a valid email address was provided on the “Verify Your Filing Information” screen. If using email filtering software, configure the software to accept email from fire@irs.gov and irs.e-helpmail@irs.gov. If the file is bad or an email has not been received within five days, the filer must return to http://fire.test.irs.gov to determine what errors are in the file by clicking on CHECK FILE STATUS.

Sec. 4. Electronic Submissions

.01 Electronically filed information may be submitted to IRS 24 hours a day, seven days a week. Technical assistance is available Monday through Friday between 8:30 a.m. and 4:30 p.m. (ET) by calling 1-866-455-7438 or outside the U.S. at 1-304-263-8700.

.02 The FIRE system has scheduled downtime from December 14, 2012 through January 2, 2013. This allows IRS to make yearly updates to reflect current year changes. In addition, the FIRE system may be down every Wednesday from 2:00 a.m. to 5:00 a.m. (ET) for programming updates. The FIRE system will not be available for submissions during these times.

.03 A file may not exceed 899,999 records. When sending files larger than 10,000 records electronically, data compression is encouraged. WinZip and PKZip are the only acceptable compression packages. IRS cannot accept self-extracting zip files or compressed files containing multiple files. The time required to transmit information returns electronically will vary depending on the type of connection to the internet and if data compression is used. The time required to transmit a file can be reduced by as much as 95 percent by using compression. Transmitters that experience problems transmitting files with a scripting process should contact IRS at 1-866-455-7438 or 1-304-263-8700 for assistance.

.04 Transmitters may create files using self assigned filename(s). Files submitted electronically will be assigned a new unique filename by the FIRE system. The filename assigned by the FIRE system will consist of submission type (TEST, ORIG [original], AMEN [amended return], and REPL [replacement]), the filer’s TCC, and a four-digit sequence number. The sequence number will be incremental for every file sent. For example, if this is the first original file for the calendar year and the TCC is 22000, the IRS assigned filename would be ORIG.22000.0001. Record the filename. This information will be needed by IRS to identify the file if assistance is required.

.05 If a file is submitted timely, but is “bad,” the filer will have up to 60 days from the day the file was transmitted to transmit an acceptable replacement file. If an acceptable replacement file is not received within 60 days, the payer could be subject to late filing penalties. This only applies to files originally submitted electronically.

.06 The following definitions have been provided to help distinguish between an amended return and a replacement:

  • An amended return is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS, but contained erroneous information.

    Note

    Note: Amended returns should only be submitted for records that have been submitted incorrectly, not the entire file.

  • A replacement is an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE system indicated the original/amended file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE system.

    Note

    Note: Filers should never transmit anything to IRS as a “Replacement” file unless the CHECK FILE STATUS option on the FIRE system indicates the file is bad.

.07 The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered an error.

Sec. 5. PIN Requirements

.01 The user will be prompted to create a PIN consisting of ten (10) numeric characters when establishing an initial User ID name and password.

.02 The PIN is required each time an ORIGINAL, AMENDED, or REPLACEMENT file is sent electronically and is permission to release the file. It is not needed for a TEST file. An authorized agent/transmitter may enter their PIN; however, the withholding agent is responsible for the accuracy of the returns. The withholding agent will be liable for penalties for failure to comply with filing requirements. If there is a problem with a PIN, filers should call 1-866-455-7438 or outside the U.S. at 1-304-263-8700 for assistance.

.03 If the file is “good”, it is released for mainline processing after ten (10) calendar days from receipt. Contact IRS within this ten-day period if there is a reason the file should not be released for further processing.

.04 If the file is bad, follow normal replacement procedures.

Sec. 6. Electronic Filing Specifications

.01 The FIRE system is designed exclusively for the filing of Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA and W-2G.

.02 A transmitter must have a TCC (see Part A, Sec. 6) before a file can be transmitted.

.03 Within five days of the electronic transmission, the results of the electronic transmission(s) will be sent to the email address that was provided on the “Verify Your Filing Information” screen. If using email filtering software, configure the software to accept email from fire@irs.gov and irs.e-helpmail@irs.gov. If the file is bad, the filer must return to http://fire.irs.gov (or http://fire.test.irs.gov if a test file) to determine what errors are in the file by clicking on “CHECK FILE STATUS.”

Sec. 7. Connecting to the FIRE System

.01 Have the TCC and TIN available before connecting.

.02 Turn off pop-up blocking software before transmitting files.

.03 Make sure the browser supports the security standards listed below.

.04 Set the browser to receive “cookies.” Cookies are used to preserve the User ID status.

.05 Point the browser to http://fire.irs.gov to connect to the FIRE system or http://fire.test.irs.gov to connect to the FIRE test system (November 1 through February 15).

.06 FIRE Internet Security Technical Standards are:

 
  • HTTP 1.1 Specification (http://www.w3.org/Protocols/rfc2616/rfc2616.txt)

  • SSL 3.0 or TLS 1.0. SSL and TLS are implemented using SHA and RSA 1024 bits during the asymmetric handshake.

The filer can use one of the following encryption algorithms, listed in order of priority, using SSL or TLS:

 
  • AES 256-bit (FIPS-197)

  • AES 128-bit (FIPS-197)

  • TDES 168-bit (FIPS-46-3)

.07 First time connection to the FIRE System (If there has been a previous logon, skip to Subsequent Connections to the FIRE System.)
   
  • Click “Create New Account”

  • Fill out the registration form and click “Submit”

  • Create the User ID

  • Create and verify password (See Part B Section 2.04 for password rules)

  • Click “Create”

  • If the message “Account Created” is received, click “OK”

  • Create and verify the ten-digit self-assigned Personal Identification Number (PIN)

  • Click “Submit”

  • If the message “Your PIN has been successfully created!” is received, click “OK”

  • Read the bulletin(s) and/or “Click here to continue”

.08 Subsequent connections to the FIRE System
       
   
  • Click “Log On”

  • Enter the User ID

  • Enter the Password (The password is case sensitive)

  • Read the bulletin(s) and/or “Click here to continue”

.09 Uploading a file to the FIRE System
    At the Menu Options:
     
  • Click “Send Information Returns”

  • Enter the TCC

  • Enter the TIN

  • Click “Submit”

       
    The system will display the company name, address, city, state, ZIP code, telephone number, contact, and email address. This information will be used to email the transmitter regarding the transmission. Update as appropriate and/or click “Accept.”
    Note: Please provide an accurate email address for the correct person to receive the email and to avoid having the email returned to IRS as undeliverable. If SPAM filtering software is being used, configure it to allow an email from fire@irs.gov and irs.e-helpmail@irs.gov.
       
    Click one of the following:
     
  • Original File

  • Replacement File

  • Amended File

  • Test File (This option will only be available from November 1 through February 15 at http://fire.test.irs.gov.)

  • Enter the ten-digit PIN (If sending a test file, there is no prompt for this.)

  • Click “Submit”

  • Click “Browse”to locate the file and open it

  • Click “Upload”

       
When the upload is complete, the screen will display the total bytes received and the IRS assigned filename for the file. If this information is not displayed on the screen, IRS may not have received the file.
       
To verify, go to the “CHECK FILE STATUS” option on the Main Menu. If the filename is displayed, the count is equal to “0,” and the results indicate “not yet processed,” IRB received the file. If the filename is not displayed, send the file again.
       
    If there are more files to upload for that TCC:
     
  • Click “File Another?” otherwise

  • Click “Main Menu”

It is the filer’s responsibility to check the acceptability of submitted files. If an email is not received within five business days or an email is received and it indicates the file is bad, log back into the FIRE system and click on CHECK FILE STATUS to view the results of the file.
.10 Checking the FILE STATUS
       
If the correct email address was provided on the “Verify Your Filing Information” screen when the file was sent, an email will be sent regarding the FILE STATUS. If the results in the email indicate “Good, not Released” and the “Count of Payees” is correct, the filer is finished with this file. If the email indicates any other results, follow the instructions below.
       
    —At the Main Menu:
     
  • Click “Check File Status”

  • Enter the TCC

  • Enter the TIN

  • Click “Search”

       
    —If the “Results” indicate:
      “Good, Not Released” - If the “Count of Payees” is correct, the filer is finished with this file. The file will automatically be released after ten calendar days unless the filer contacts IRB within this timeframe.
      “Good, Released” - The file has been released to our mainline processing.
      “Bad” - The file has errors. Click on the filename to view the error message(s). Fix the errors, and resubmit the file timely as a “replacement.”
      “Not yet processed” - The file has been received, but results are not available. Please check back in a few days.
    —Click on the desired file for a detailed report of your transmission.
     
  • When finished, click “Log Out”

  • Click “Close Web Browser”

Sec. 8. Common Problems and Questions

.01 Publication 1187 is a Revenue Procedure used to provide the electronic filing specifications and format to filers of Forms 1042-S, it is not a tax law document. Therefore, this publication cannot provide for all possible reporting situations. For any given record entry, it is the responsibility of the filer to make sure the relevant tax law is applied to the record entry being made.

FORMAT ERRORS
1. Incorrect TIN indicator in the “W” Record.
   
Ensure the correct TIN Indicator is used. A U.S. withholding agent always has an EIN. Only a foreign withholding agent that has entered into a Qualified Intermediary agreement with the IRS can have a QI-EIN. If the withholding agent is a foreign company, then a foreign address must be entered in the withholding agent address fields.
   
2. Blank or invalid information in the Withholding Agent’s name and address fields.
 
The IRS error correction process requires that the “W” Record be checked for validity before the “Q” Record can be corrected. Ensure that the withholding agent’s Name, EIN, Street Address, City, and State or Country is present along with the appropriate Postal or ZIP Code. The Withholding Agent’s Name Line-1 must contain the withholding agent’s name.
   
3. Missing Recipient TIN in the “Q” Record.
   
A Recipient TIN must be present in order to allow a reduction or exemption from withholding at the 30% tax rate. The only major exceptions to this rule involve payments of portfolio interest, dividends, and certain royalty payments. If the recipient doesn’t have a TIN, one must be applied for and provided to the withholding agent before a reduction or exemption of withholding is allowed.
   
4. Invalid recipient name and address information.
   
The recipient name entered in Recipient’s Name Line-1 must be the same name shown on the withholding certification document provided to and retained by the withholding agent. Recipient’s Street Line-1 should only show the official street address. Use Recipient’s Street Line-2 for additional internal distribution information such as mail stop numbers or attention information. Follow the instructions for entry of foreign postal codes, cities, and countries. Do not input all information in the City field. Use the appropriate fields and codes.
   
5. Incorrect use of Recipient Code 20 (Unknown Recipient).
   
This Recipient Code may be used only if no withholding certification document has been provided to and retained by the withholding agent, or the withholding certification document provided to and retained has been determined by the withholding agent to be incomplete or otherwise unreliable. If Recipient Code 20 is used, the Recipient Name Line-1 must contain the words “UNKNOWN” or “UNKNOWN RECIPIENT” and the other name and address fields must be blank.
   
6. Incorrect use of Recipient Code 20 and the Tax Rate and U.S. Tax Withheld fields.
   
If Recipient Code 20 is used, the Tax Rate and the U.S. Tax Withheld must always be 30%. Exemption Code 04 (treaty exemption) is not allowed when using Recipient Code 20.
   
7. Incorrect use of Country Codes in the “Q” Record.
   
There are three places in the “Q” Record where country information must be entered. Generally, the information entered in these three fields should be consistent. The country list in the Instructions for Form 1042-S is comprehensive. Do not use any code that is not on the list. Read the Instructions for Form 1042-S regarding the use of “OC” and “UC.” Do not use these two codes under any other circumstances than those specifically indicated in the instructions.
   
8. Incorrect reporting of Tax Rates in the “Q” Record.
   
A valid Tax Rate Table is included in the Instructions for Form 1042-S. Please refer to the table and only use the tax rates listed. “Blended rates” are not allowed. If a tax rate for a given recipient changes during the year, two “Q” Records must be submitted.
   
9. Total amounts reported in the “C” Record do not equal the total amounts reported in the “Q” Records.
   
The total Gross Income and Total Withholding Credit reported in the “Q” Records must equal the Total Gross Income and Total Withholding Credit reported in the corresponding “C” Record.
   
10. The following are other major errors associated with electronic filing:
   
a. Invalid characters. The only valid characters are those characters listed in Note 3 at the beginning of the “T,” “W,” and “Q” Records.
b. “Q” Record Positions 383-394 (Total Withholding Credit) must equal the amounts in Positions 359-370 (U.S. Tax Withheld) and Positions 371-382 (Withholding by Other Agents).
c. “C” Record Positions 31-45 must reflect the aggregate of the preceding “Q” records, positions 383-394 (Total Withholding Credit).
d. “Q” Record Positions 42-45 (Tax Rate) must reflect a valid tax rate.
e. “Q” Record Positions 46-47 (Exemption Code) must reflect a valid code and the exemption code must be compatible with the tax rate. For example, if a zero tax (0000) rate is entered in positions 42-45, the appropriate exemption code of 01-09 must be used in positions 46-47.
   
NON-FORMAT ERRORS
1. SPAM filters are not set to receive email from fire@irs.gov and irs.ehelpmail@irs.gov.
   
To receive emails concerning files, processing results, reminders and notices, set the SPAM filter to receive email from fire@irs.gov and irs.e-helpmail@irs.gov.
   
2. Incorrect email provided.
 
When the “Verify Your Filing Information” screen is displayed, make sure the correct email address is listed. If not, update the screen with the correct email address.
   
3. Transmitter does not check the FIRE system to determine why the file is bad.
   
Generally, the results of a file transfer are posted to the FIRE system within five business days. If the correct email address was provided on the “Verify Your Filing Information” screen when the file was sent, an email will be sent regarding the FILE STATUS. If the results in the email indicate “Good” for test, or “Good, Not Released” for production and the “count of payees” is correct, the filer is finished with this file. If any other results are received, follow the instructions in the “Check File Status” option. If the file contains errors, get an online listing of the errors. If the file status is good, but the file should not be processed, contact IRS within ten calendar days from the transmission of the file.
   
4. Transmitter uses the TCC assigned for filing 1098, 1099, 5498 or W-2G Forms.
   
Filers must use the Form 1042-S TCC, which begins with “22,” to transmit Form 1042-S files. If the correct TCC is not used, it will automatically be considered an error.
   
5. Incorrect file is not replaced timely.
   
If a file is bad, fix the file, and resubmit timely as a replacement. An acceptable replacement file must be submitted within 60 days from the day the original file was transmitted.
   
6. Transmitter compresses several files into one.
   
Only compress one file at a time. For example, if there are ten uncompressed files to send, compress each file separately and send ten separate compressed files.
   
7. Transmitter sends a file and “CHECK FILE STATUS” indicates that the file is good, but the transmitter wants to send another file containing the same information.
   
Once a file has been transmitted, a replacement file cannot be sent unless “CHECK FILE STATUS” indicates the file is bad (five business days after the file was transmitted). If a file should not be processed, contact IRS at 1-866-455-7438 or outside the U.S. at 1-304-263-8700 to see if this is a possibility.
   
8. Transmitter sends an original file that is good, and then sends an amended file for the entire file even though there are only a few changes.
   
The amended file, containing the proper coding, should only contain the records needing correction, not the entire file. Improper submission can result in duplicate reporting of payee information.
   
9. File is formatted as EBCDIC.
   
All files submitted electronically must be in standard ASCII code.
   
10. Transmitter has one TCC, but is filing for multiple companies. Which TIN should be used when logging into the FIRE system to send the file?
   
When sending the file electronically, enter the TIN of the company assigned to the TCC.
   
11. Transmitter sent the wrong file, what should be done?
   
Call IRS at 1-866-455-7438 or outside the U.S. at 1-304-263-8700. IRS may be able to stop the file before it has been processed.
   

Part C. Record Format Specifications and Record Layouts

Sec. 1. File Layout Diagram

Sec. 2. General

.01 The specifications contained in this part of the Revenue Procedure define the required formation and contents of the records to be included in the electronic files.

Sec. 3. Transmitter “T” Record

.01 The Transmitter “T” Record identifies the entity preparing and transmitting the file. The transmitter and the withholding agent may be the same, but they need not be. The “T” Record contains information which is critical if it is necessary for IRS to contact the filer.

.02 The first record of a file must be a Transmitter “T” Record. The “T” Record must appear on each electronic file; otherwise, a replacement file will be requested.

.03 The “T” Record is a fixed length of 820 positions.

.04 All alpha characters entered in the “T” Record must be upper case.

Note

Note 1: For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If required fields are not completed in accordance with this Revenue Procedure, IRS will contact the filer to request a replacement file. For those fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length.

Note

Note 2: A copy of the current Instructions for Form 1042-S is included at the end of this publication. These instructions must be used for the proper coding of each field in this record where applicable. The instructions are updated each year as required. Publication 1187 may not be revised every year. Be sure to use the most current Instructions for Form 1042-S when coding files.

Note

Note 3: The only valid characters for electronic filing are alpha, numeric, blank, ampersand (&), hyphen(-), comma (,), apostrophe (’), forward slash (/), pound sign (#), period (.), and the percent (%). The percent [% (used as “in care of”)] is valid in the first position only. Do not use special characters that are unique to a language other than English. Inclusion of any characters other than those identified as valid in the instructions will result in a “Bad File” status.

Record Name: Transmitter “T” Record
FieldPosition Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “T.”
2-5 Tax Year 4 Required. Enter the year for which income and withholding are being reported.
6-14 Transmitter’s Taxpayer Identification Number (TIN) 9 Required. Enter the Taxpayer Identification Number of the Transmitter. This can be an Employer Identification Number (EIN), Qualified Intermediary Number (QI-EIN), Withholding Partnership (WP-EIN), or a Withholding Trust (WTEIN). Do not enter blanks, hyphens or alpha characters.
15-54 Transmitter’s Name 40 Required. Enter the name of the transmitter of the file. Abbreviate if necessary to fit the 40-character limit. Omit punctuation, if possible. Left-justify the information and fill unused positions with blanks.
Note: Do not use special characters in names or addresses that are unique to a language other than English. For example: å = A, æ = A, ű = U, Ǿ = O, ň = N, etc.
55-94 Transmitter’s Address 40 Required. Enter the full mailing address of the transmitter. This includes the number, street, and apartment or suite number (P.O. Box can be used if mail is not delivered to street address). Abbreviate as needed to fit the 40-character limit. Omit punctuation, if possible. Left-justify the information and fill unused positions with blanks.
95-114 City 20 Required. Enter the city or town (or other locality name) of the transmitter. If applicable, enter APO or FPO only. Left-justify the information and fill unused positions with blanks.
115-116 State Code 2 Required if U.S. Transmitter. Enter only the valid U.S. Postal Service State Code. Do not spell out the state name. Refer to the State Code Table Part A, Sec. 14. If this field is not utilized, enter blanks.
117-118 Province Code 2 Required if Foreign Country Code is “CA” (Canada). Enter only the two-alpha character Province Code as shown in the Province Code table below. Do not spell out the Province Name. If the foreign country is other than Canada, enter blanks.
Province Code Province Province Code Province
AB Alberta NU Nunavut
BC British Columbia ON Ontario
MB Manitoba PE Prince Edward Island
NB New Brunswick QC Quebec
NL Newfoundland & Labrador SK Saskatchewan
NS Nova Scotia YT Yukon Territory
NT Northwest Territories        
119-120 Country Code 2 Required if Foreign Transmitter.If the Country Code is present, the State Code field must be blank. Enter only the two-alpha Country Code from the Country Code table. Do not spell out the Country Name.
Note: Country Codes: The list of country codes provided in the current Instructions for Form 1042-S includes all internationally recognized country codes and must be used to ensure the proper coding of the Country Code field. This list is updated each year as required. Do not enter U.S. in the Country Code field.
121-129 Postal or ZIP Code 9 Required. Enter up to nine numeric characters for all U.S. addresses (including territories, possessions, and APO/FPO). For foreign addresses enter the alphanumeric foreign postal code, if applicable. Left-justify the information and fill unused positions with blanks.
130-169 Contact Name 40 Required. Enter the name of the person to contact if any questions should arise with the transmission. Left-justify the information and fill unused positions with blanks.
170-189 Contact Telephone Number 20 Required. Enter the contact person’s telephone number, and extension, if applicable. If foreign, provide appropriate codes for international calls. Left-justify the information and fill unused positions with blanks.
190-194 Transmitter Control Code (TCC) 5 Required. Enter the five-character alphanumeric TCC assigned ONLY for Form 1042-S reporting. (The first two numbers will always be 22.) Alpha characters must be upper case.
195-198 Test Indicator 4 Required if this is a test file. Enter the word “TEST.” Otherwise, enter blanks.
199 Prior Year Indicator 1 Required. Enter a “P” only if reporting prior year data; otherwise, enter blank. Do not enter a “P” for current year information.
200-810 Reserved 611 Enter blanks.
811-818 Record Sequence Number 8 Required. Enter the number of the record as it appears within the file. The record sequence number for the “T” Record will always be “1” (one), since it is the first record on the file and there can only be one “T” Record in a file. Each record, thereafter, must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify numbers with leading zeroes in the field. For example, the “T” Record sequence number would appear as “00000001” in the field, the first “W” Record would be “00000002,” the first “Q” Record, “00000003,” the second “Q” Record, “00000004,” and so on until the final record of the file, the “F” Record.
819-820 Blank or Carriage Return Line Feed 2 Enter blanks or carriage return line feed (CR/LF) characters.
Transmitter “T” Record Layout
Record Type Tax Year Transmitter’s TIN Transmitter’s Name Transmitter’s Address City
1 2-5 6-14 15-54 55-94 95-114
State Code Province Code Country Code Postal or ZIP Code Contact Name Contact Telephone Number
115-116 117-118 119-120 121-129 130-169 170-189
TCC Test Indicator Prior Year Indicator Reserved Record Sequence Number Blank or Carriage Return Line Feed
190-194 195-198 199 200-810 811-818 819-820

Sec. 4. Withholding Agent “W” Record

.01 The “W” Record identifies the Withholding Agent.

.02 Enter a “W” Record after the initial “T” Record on the file, followed by the Recipient “Q” Record(s), and a Reconciliation “C” Record. Do not report for a withholding agent if there are no corresponding Recipient “Q” Records.

.03 Several “W” Records for different Withholding Agents may appear on the same Transmitter’s file.

.04 Each “W” Record is a fixed length of 820 positions.

.05 All alpha characters entered in the “W” Record must be uppercase.

Note

Note 1: For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If required fields are not completed in accordance with this Revenue Procedure, the file may not process correctly. For those fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length.

Note 2: A copy of the Instructions for Form 1042-S is included at the end of this publication. These instructions must be used for the proper coding of each field in this record, where applicable. The list of country codes in the instructions includes all recognized country codes and must be used for coding. The instructions are updated each year as required. Publication 1187 may not be revised every year. Be sure to use the most current Instructions for Form 1042-S when coding files.

Note 3: The only valid characters for electronic filing are alpha, numeric, blank, ampersand (&), hyphen (-), comma (,), apostrophe (’), forward slash (/), pound sign (#), period (.), and the percent (%). The percent [% (used as “in care of”)] is valid in the first position only. Do not use special characters that are unique to a language other than English. Inclusion of any characters other than those identified as valid in the instructions will result in a “Bad File” status.

Record Name: Withholding Agent “W” Record
Field Position Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “W.”
2 Return Type Indicator 1 Required. Enter the one position value below to identify whether the record is Original or Amended. If submitting a replacement file, use the same indicator as the file being replaced (for example, if replacing an amended file the indicator would be 1). Do not enter a blank or alpha character.
      Acceptable Values are:
      0 (Zero) = Original
      1 = Amended
3 Pro Rata Basis Reporting 1 Required. Enter the one position value below to identify if reporting on a Pro Rata Basis. Acceptable Values are:
      Acceptable Values are:
      0 (Zero) = Not Pro Rata
      1 = Pro Rata Basis Reporting
4-12 Withholding Agent’s EIN 9 Required. Enter the nine-digit Employer Identification Number of the Withholding Agent. Do not enter blanks, hyphens or alpha characters. An EIN consisting of all the same digits (for example, 111111111) is not acceptable. Do not enter the recipient’s TIN in this field.
Note: See the Instructions for Form 1042-S to determine when a Qualified Intermediary, Withholding Foreign Partnership, or Withholding Foreign Trust must provide its QI-EIN, WP-EIN or WT-EIN in this field.
13 Withholding Agent’s EIN Indicator 1 Required. Enter the Withholding Agent’s EIN indicator from the following values:
      0 = EIN
      1 = QI-EIN, WP-EIN, WT-EIN
      2 = NQI-EIN
Note: Use EIN indicator 1 only if the Withholding Agent’s EIN begins with “98” AND the Withholding Agent, Withholding Trust, or Withholding Partnership has entered into a withholding agreement with the IRS.
14-53 Withholding Agent’s Name Line-1 40 Required. Enter the Withholding Agent’s Name as established when filing for the EIN or QI-EIN which appears in positions 4-12 of the “W” Record. Left-justify the information and fill unused positions with blanks.
Note: Do not use special characters in names or addresses that are unique to a language other than English. For example: å = A, æ = A, ű = U, Ǿ = O, ň = N, etc.
54-93 Withholding Agent’s Name Line-2 40 Enter supplementary withholding agent’s name information; otherwise, enter blanks. Use this line for additional names (for example, partners or joint owners), for trade names, stage names, aliases, or titles. Also use this line for “in care of” or “via.” Left-justify the information and fill unused positions with blanks. See Note 3 at the beginning of the “W” Record.
94-133 Withholding Agent’s Name Line-3 40 See the description for Withholding Agent’s Name Line-2.
134-173 Withholding Agent’s Street Line-1 40 Required. Enter the mailing address of the withholding agent. The street address should include the number, street, and apartment or suite number (or P.O. Box if mail is not delivered to a street address). Abbreviate as needed. Left-justify the information and fill unused positions with blanks.
174-213 Withholding Agent’s Street Line-2 40 Enter supplementary withholding agent street address information. Otherwise, enter blanks.
214-253 Withholding Agent’s City 40 Required. Enter the city or town (or other locality name). Enter APO or FPO only if applicable. Do not enter a foreign postal code in the city field. Left-justify the information and fill unused positions with blanks.
254-255 Withholding Agent’s State Code 2 Required if Withholding Agent has a U.S. address. Enter the valid U.S. Postal Service state code. If not using a U.S. state, territory, or APO/FPO identifiers, enter blanks. Do not use any of the two character Country Codes in the State Code Field.
Note: If the withholding agent has a U.S. address, leave the country code in positions 258-259 blank.
256-257 Withholding Agent’s Province Code 2 Required if Foreign Country Code is “CA” (Canada). Enter only the two-alpha character Province Code as shown in the Province Code Table. See the “T” record positions 117-118 for the Province Code Table. Do not spell out the Province Name. If the foreign country is other than Canada, enter blanks.
258-259 Withholding Agent’s Country Code 2 Required if QI or NQI or other foreign withholding agent. Enter only the two-alpha Country Code from the Country Code Table. Do not spell out the Country Name.
Note: COUNTRY CODES: The list of country codes provided in the current Instructions for Form 1042-S includes all internationally recognized country codes and MUST be used to ensure the proper coding of the Country Code field. This list is updated each year as required. Do not enter U.S. in the Country Code field.
260-268 Postal or ZIP Code 9 Required. Enter up to nine numeric characters for all U.S. addresses (including territories, possessions, and APO/FPO). For foreign addresses enter the alphanumeric foreign postal code, if applicable. Left-justify the information and fill unused positions with blanks.
269-272 Tax Year 4 Required. Enter the four-digit current tax year, unless a “P” was entered in the Prior Year Indicator Field of the “T” Record. All recipient “Q” Records must be a report of payments for one year only. Different tax years may not appear on the same file.
273-317 Withholding Agent Contact Name 45 Required. Enter the name of the person the IRS can contact if questions arise concerning this filing. Left-justify the information and fill unused positions with blanks.
318-362 Withholding Agent’s Department Title 45 Required. Enter the title of the contact person or the department that can answer inquiries concerning this filing. Left-justify the information and fill unused positions with blanks.
363-382 Contact Telephone Number and Extension 20 Required. Enter the telephone number of a person to contact regarding electronic files. Omit hyphens. If no extension is available, left-justify the information and fill unused positions with blanks. If foreign, provide the appropriate code(s) for international calls.
383 Final Return Indicator 1 Required. Enter the one position value below to indicate whether Forms 1042-S will be filed in the future.
      0 (Zero) = will be filing
      1 = will not be filing
384-809 Reserved 426 Enter blanks.
810 Amended Return Indicator 1 Required for amended returns only. Enter the appropriate code:
      Code Definition
      G A one-step transaction amended return or the first of a two-step transaction amended return
      C The second transaction of a two-step transaction amended return
      Blank If this is not a return being submitted to amend information already processed by IRS
Note: Amended C and G coded records must be reported using separate Payer “W” Records. Refer to Part A, Sec. 9, for specific instructions on how to file amended returns.
Non-coded records cannot be submitted in an Amended file.
811-818 Record Sequence Number 8 Required. Enter the number of the record as it appears within the file. The record sequence number for the “T” Record will always be “1” (one), since it is the first record on the file and there can be only one “T” Record in a file. Each record, thereafter, must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” Record sequence number would appear as “00000001” in the field, the first “W” Record would be “00000002,” the first “Q” Record, “00000003,” the second “Q” Record, “00000004,” and so on until the final record of the file, the “F” Record.
819-820 Blank or Carriage Return Line Feed 2 Enter blanks or carriage return line feed (CR/LF) characters.
Withholding Agent “W” Record Layout
Record Type Return Type Indicator Pro Rata Basis Reporting Withholding Agent’s EIN Withholding Agent’s EIN Indicator Withholding Agent’s Name Line-1 Withholding Agent’s Name Line-2
1 2 3 4-12 13 14-53 54-93
Withholding Agent’s Name Line-3 Withholding Agent’s Street Line-1 Withholding Agent’s Street Line-2 Withholding Agent’s City Withholding Agent’s State Code Withholding Agent’s Province Code Withholding Agent’s Country Code
94-133 134-173 174-213 214-253 254-255 256-257 258-259
Postal or ZIP Code Tax Year Withholding Agent Contact Name Withholding Agent’s Department Title Contact Telephone Number and Extension Final Return Indicator Reserved
260-268 269-272 273-317 318-362 363-382 383 384-809
Amended Return Indicator Record Sequence Number Blank or Carriage Return Line Feed        
810 811-818 819-820        

Sec. 5. Recipient “Q” Record

.01 The “Q” Record contains name and address information for the Recipient of Income, Non-Qualified Intermediary or Flow-Through Entity, Payer, and all data concerning the income paid and tax withheld that is required to be reported under U.S. law. Each Recipient “Q” Record is treated as if it were a separate Form 1042-S.

.02 The “Q” Record is restricted to one type of income, one type of exemption code, and one tax rate. Under certain circumstances, it may be necessary to submit more than one “Q” Record for the same recipient. Failure to provide multiple Recipient “Q” Records when necessary may generate math computation errors during processing. This will result in IRS contacting you for correct information.

.03 Following are some of the circumstances when more than one “Q” Record for a recipient would be required:

  1. Different types of income. For example, Recipient X derived income from Capital Gains (Income Code 09) and Industrial Royalties (Income Code 10). A separate “Q” Record must be reported for each Income Code. Each “Q” Record must reflect the Gross Income Paid and any U.S. Federal Tax withheld by the withholding agent(s) pertaining to that Income Code.

  2. Change in Country Code during the year. For example, the Withholding Agent received notification by Form W-8BEN that the recipient’s country of residence for tax purposes changed from country X to country Y. A separate “Q” Record must be reported for each Country Code providing Gross Income Paid, Tax Rate, any U.S. Federal Tax Withheld by the withholding agent(s), and Exemption Code, if any. The amounts reported must be based on each country.

  3. Change in a country’s tax treaty rate during the year. For example, effective April 1, country X changes its tax treaty rate from ten percent to twenty percent. A separate “Q” Record must be reported for each of the tax rates. Provide the Gross Income Paid, Tax Rate, and any U.S. Federal Tax Withheld by the withholding agent(s) under each tax rate.

.04 All recipient “Q” Records for a particular Withholding Agent must be written after the corresponding Withholding Agent “W” Record, followed by a Reconciliation “C” Record, and before the “W” Record for another Withholding Agent begins.

.05 All alpha characters entered in the “Q” Record must be upper case.

.06 The “Q” Record is a fixed length of 820 positions.

.07 Report income and tax withheld in whole dollars only. Round up or down as appropriate. To round off amounts to the nearest whole dollar, drop amounts under 50 cents and increase amounts of 50 to 99 cents to the next whole dollar. If there are two or more amounts to add together, figure the amount to be reported by including cents when adding and only round off the total figure to be reported. Do not enter cents.

Note

Note 1: For all fields marked “Required,” the transmitter must provide the information described under Description and Remarks. If required fields are not completed in accordance with this Revenue Procedure, the file will not process correctly. IRS will contact the filer to request a replacement file. For those fields not marked “Required,” a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length.

Note

Note 2: A copy of the Instructions for Form 1042-S is included at the end of this publication. These instructions must be used for the proper coding of each field in this record where applicable. The list of country codes in the instructions includes all recognized country codes and must be used for coding. The instructions are updated each year as required. Publication 1187 may not be revised every year. Be sure to use the most current Instructions for Form 1042-S for coding files.

Note

Note 3: The only valid characters for electronic filing are alpha, numeric, blank, ampersand (&), hyphen (-), comma (,), apostrophe (’), forward slash (/), pound sign (#), period (.), and the percent (%). The percent [% (used as “in care of”)] is valid in the first position only. Do not use special characters that are unique to a language other than English. Inclusion of any characters other than those identified as valid in the instructions will result in a “Bad File” status.

Record Name: Recipient “Q” Record
Field Positions Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “Q.”
2 Return Type Indicator 1 Required. Enter the one position value below to identify whether the record is Original or Amended. If submitting a replacement file, use the same indicator as the file being replaced (for example, if replacing an amended file, the indicator would be 1). This must be the same value as in the “W” Record. Values are:
0 (Zero) = Original
1 = Amended
3 Pro Rata Basis Reporting 1 Required. Enter the one position value below to identify whether reporting on a Pro Rata Basis. This must be the same value as in the “W” Record. Values are:
0 (Zero) = Not Pro Rata
1 = Pro Rata Basis Reporting
4-5 Income Code 2 Required. Enter the two-position value EXACTLY as it appears from the income code table. The Income Code must accurately reflect the type of income paid. Do not enter blanks or 00 (zeros).
Note: Refer to the Instructions for Form 1042-S for more information.
6-17 Gross Income 12 Required. Enter the gross income amount in whole dollars only, rounding to the nearest dollar (do not enter cents). For example, report $600.75 as 000000000601. An income amount of zero cannot be shown. Only amended returns can report zero amounts. Numeric characters only, right-justify information and fill unused positions with zeros.
Note: Do not report negative amounts in any amount field.
18-29 Withholding Allowance 12 Used with Income Codes 15, 16, 17, 18, 19, 42, or 43 only. Enter the withholding allowance amount in whole dollars only, rounding to the nearest dollar (do not enter cents). Numeric characters only, right-justify the information and fill unused positions with zeros. If this field is not used enter blanks.
30-41 Net Income 12 Required if a Dollar Amount is Entered in the Withholding Allowance Field. Enter the net income in whole dollars only, rounding to the nearest dollar (do not enter cents). An amount other than zero must be shown. Numeric characters only, right-justify the information and fill unused positions with zeros. If this field is not utilized, enter blanks.
42-45 Tax rate 4 Required. Enter the correct Tax Rate applicable to the income in the gross income field or net income field, as appropriate. Enter the Tax Rate as a two-digit whole number and two-digit decimal (for example, enter 27.50% as 2750, 15% as 1500 or 7% as 0700). See Note below.
Note: The correct Tax Rate must be entered, even if withholding was at a lesser rate. See the current Instructions for Form 1042-S.
46-47 Exemption Code 2 Required. Read Carefully.
• If the tax rate entered is 0%, enter the appropriate exemption code “01” through “10” from the Instructions for Form 1042-S.
• If the tax rate entered is 1% through 30%, enter “00.”
• If the tax rate entered is greater than 30%, blank fill. Do not enter “00.”
See the current Instructions for Form 1042-S for circumstances under which Exemption Code “99” must be used.
Note: If an incorrect amount of tax was withheld, report the amount that was actually withheld and use the correct tax rate in field positions 42-45.
48-49 Recipient’s Country of Residence Code for Tax Purposes 2 Required. Enter the two-character Country Code for which the recipient is a resident for tax purposes and on which the tax treaty benefits are based, whether applying a tax treaty benefit to this payment or not. The rate of tax withheld is determined by this code.
Note: Do not enter U.S. in the Country Code field. 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. If making a payment to a QI or QI withholding rate pool, enter the country code of the QI.
50-59 Reserved 10 Enter blanks.
60-71 Amount Repaid 12 This field should be completed only if: a recipient was repaid an amount that was over-withheld and the withholding agent is going to be reimbursed by reducing, by the amount of tax actually repaid, the amount of any deposit made for a payment period in the calendar year following the calendar year of withholding. Otherwise, enter zeros.
72-91 Recipient Account Number 20 Enter the account number assigned by the withholding agent to the recipient. Do not enter the recipient’s U.S. or foreign TIN. If an account number is not assigned, enter blanks. This field may contain numeric characters, alpha characters, blanks, or hyphens. Left-justify the information and fill unused positions with blanks.
92-93 Recipient Code 2 Required. Enter the appropriate Recipient Code. Refer to the list of appropriate codes in the current paper Instructions for Form 1042-S. No other codes or values are valid.
Note: If recipient code “20” is used, the Recipient’s Name Line-1 must be “UNKNOWN” or “UNKNOWN RECIPIENT” and the Recipient’s Name Lines 2 and 3 must be BLANK. The tax rate must be 30%.
94-133 Recipient’s Name Line-1 40 Required. Provide the complete name of the recipient. If the recipient has a U.S. TIN, enter the name as established when applying for the TIN. If recipient code “20” is used, enter “UNKNOWN” or “UNKNOWN RECIPIENT.” Recipient’s Name Lines 2 and 3 must be blank. See the Instructions for Form 1042-S for specific information about “UNKNOWN RECIPIENTs” and “WITHHOLDING RATE POOLs” See Note 3 at the beginning of the “Q” Record
Note 1: A Non-Qualified Intermediary (NQI) can NEVER be entered as the recipient.
Note 2: Do not use special characters in names or addresses that are unique to a language other than English. For example: å = A, æ = A, u = U, Ǿ= O, ň = N, etc.
134-173 Recipient’s Name Line-2 40 Enter supplementary recipient name information including titles; otherwise, enter blanks. Use this line for additional names (for example, partners or joint owners), for trade names, stage names, aliases or titles. Also use this line for “in care of,” “Attn,” or “via”. See Note 3 at the beginning of the “Q” Record.
174-213 Recipient’s Name Line-3 40 See the description for Recipient’s Name Line-2.
214-253 Recipient’s Street Line-1 40 Required. Enter the mailing address of the recipient. The street address should include the number, street, apartment, or suite number (or P.O. Box if mail is not delivered to a street address). Abbreviate as needed. Left-justify the information and fill unused positions with blanks. See Note 3 at the beginning of the “Q” Record.
254-293 Recipient’s Street Line-2 40 Enter supplementary recipient street address information. If a P.O. Box is used in addition to a street address, enter it here. Left-justify the information and fill unused positions with blanks.
294-333 Recipient’s City 40 Required. Enter the city or town (or other locality name). Enter the APO or FPO only, if applicable. Do not enter a foreign postal code in the city field. Left-justify the information and fill unused positions with blanks.
334-335 Recipient’s State 2 Required if U.S. address. Enter the two-character State Code abbreviation. If no U.S. state, territory, or APO/FPO identifier is applicable, enter blanks. Do not use any of the two character Country Codes in the State Code Field.
Note: If the recipient has a U.S. address, leave the province code in positions 336-337 and country code in positions 338-339 blank.
336-337 Recipient’s Province Code 2 Required if the Recipient Country Code in positions 338-339 is “CA.” Enter only the two-alpha character Province Code as shown in the Province Code Table below. Do not spell out the Province Name. If the foreign country is other than Canada, enter blanks.
Province Code Province Province Code Province
AB Alberta NU Nunavut
BC British Columbia ON Ontario
MB Manitoba PE Prince Edward Island
NB New Brunswick QC Quebec
NL Newfoundland & Labrador SK Saskatchewan
NS Nova Scotia YT Yukon Territory
NT Northwest Territories        
338-339 Recipient’s Country Code 2 Required if the recipient has a foreign address. Enter the two-character Country Code abbreviation. See the Instructions for Form 1042-S for the appropriate codes.
Note 1: If the state code is entered in positions 334-335, leave this field blank.
Note 2: COUNTRY CODES: The list of country codes provided in the current Instructions for Form 1042-S includes all internationally recognized country codes and must be used to ensure the proper coding of the Country Code field. This list is updated each year as required. If making a payment to a QI, enter the country code of the QI.
Note 3: Enter “UC” (unknown country) only if the payment is to an unknown recipient.
340-348 Postal or ZIP Code 9 Required. Enter up to nine numeric characters for all U.S. addresses (including territories, possessions, and APO/FPO). For foreign addresses enter the alphanumeric foreign postal code, if applicable. Left justify the information and fill unused positions with blanks.
349-357 Recipient’s U.S. TIN 9 Enter the recipient’s nine-digit U.S. Taxpayer Identification Number (TIN). Do not enter hyphens, alpha characters, or TINS consisting of all the same digits (for example, 111111111 or 999999999) as these are not valid TINs. If a TIN is not required under regulations, or is required but has not been provided by the recipient, enter blanks.
Note: U.S. TINs are now required for most recipients. See the Instructions for Form 1042-S.
358 Recipient’s U.S. TIN Type 1 Required. Enter the recipient’s U.S. TIN type indicator from the following values:
• 0 = No TIN required
• 1 = SSN/ITIN
• 2 = EIN
• 3 = QI-EIN, WP-EIN, WT-EIN
• 4 = TIN required but not provided
Note: Use EIN indicator 3 only if the Withholding Agent’s EIN begins with “98” and the Withholding Agent, Withholding Trust, or Withholding Partnership has entered into a withholding agreement with the IRS.
359-370 U. S. Federal Tax Withheld 12 Required. Enter U.S. Federal tax withheld by the withholding agent. Enter the amount in whole dollars, rounding to the nearest dollar (do not enter cents). For example, report $600.25 as 000000000600. Numeric characters only, right-justify the information and fill unused positions with zeros. If there was no withholding, enter all zeros.
371-382 Withholding By Other Agents 12 Required. For withholding agents reporting Form 1042-S information that has already been subject to withholding by another withholding agent, enter the amount withheld by the other agent. Enter the amount in whole dollars, rounding to the nearest dollar (do not enter cents). For example, report $600.25 as 000000000600. Numeric characters only, right-justify the information and fill unused positions with zeros. If there was no withholding, enter all zeros.
Note: If claiming a credit on Form 1042 (line 66) because of withholding by other agents, attach a copy of the Form 1042-S to Form 1042 to support the credit. For additional guidance, please review the Instructions for Form 1042.
383-394 Total Withholding Credit 12 Required. Enter the aggregate amount of U.S. Federal tax withheld by you and any other withholding agent. Enter the amount in whole dollars, rounding to the nearest dollar (do not enter cents). For example, report $600.25 as 000000000600. Numeric characters only, right-justify the information and fill unused positions with zeros. If there was no withholding, enter all zeros.
Note: If the Total Withholding Credit, (aggregate amounts of U.S. Federal Tax Withheld and Withholding By Other Agents) was either under or over reported, see Field Position 761 of the “Q” Record.
395-400 Reserved 6 Enter blanks.
401-440 NQI/FLW-THR/PTP Name Line-1 40 Provide the complete name of the NQI/FLW-THR or PTP Entity. It is very important that the complete name of the NQI/FLW-THR or PTP entity be provided. Left-justify the information and fill unused positions with blanks. See Note 3 at the beginning of the “Q” Record.
Note 1: A nominee that is the withholding agent under Code Section 1446 must enter the Publicly Traded Partnership’s (PTP) name and other information in the NQI/FLW-THR fields; positions 401-666.
Note 2: All NQI/FLW-THR fields are REQUIRED if the NQI/FLW-THR entity is involved in the payment structure, EXCEPT FOR THE NQI/FLW-THR TIN.
441-480 NQI/FLW-THR/PTP Name Line-2 40 Enter supplementary information; otherwise, enter blanks. Use this line for additional names (for example, partners or joint owners), for trade names, stage names, aliases, or titles. Also use this line for “in care of” or “via”. See Note 3 at the beginning of the “Q” Record.
481-520 NQI/FLW-THR/PTP Name Line-3 40 See the description for NQI/FLW-THR/PTP Name Line-2.
521-522 Reserved 2 Enter blanks.
523-562 NQI/FLW-THR/PTP Street Line-1 40 Enter the mailing address of the NQI/FLW-THR or PTP entity. The street address should include the number, street, apartment, or suite number (or P.O. Box if mail is not delivered to street address). Abbreviate as needed. Left-justify the information and fill unused positions with blanks.
563-602 NQI/FLW-THR/PTP Street Line-2 40 Enter supplementary NQI/FLW-THR or PTP entity street address information; otherwise, enter blanks.
603-642 NQI/FLW-THR/PTP City 40 Enter the city or town (or other locality name). Left-justify the information and fill unused positions with blanks.
643-644 NQI/FLW-THR/PTP State Code 2 Enter the two-alpha character state code (see table Part A, Sec. 14). If a state code or APO/FPO is not applicable, enter blanks.
645-646 NQI/FLW-THR/PTP Province Code 2 Enter the two-alpha character Province Code abbreviation, if applicable. See “T” Record positions 117-118.
647-648 NQI/FLW-THR/PTP Country Code 2 Enter the two-character Country Code abbreviation, where the NQI/FLW-THR or PTP is located. If the NQI/FLW-THR or PTP has a U.S. address, enter blanks.
649-657 NQI/FLW-THR/PTP Postal Code or ZIP Code 9 Enter the alphanumeric foreign postal code or U.S. ZIP Code for all U.S. addresses including territories, possessions, and APO/FPO. Enter the code in the left most position and blank fill the remaining positions.
658-666 NQI/FLW-THR/PTP U.S. TIN 9 Enter the NQI/FLW-THR or PTP nine-digit U.S. Taxpayer Identification Number (TIN), if any. Do not enter hyphens or alpha characters.
667-706 Payer’s Name 40 Enter the name of the Payer of Income if different from the Withholding Agent. Abbreviate as needed. If the Withholding Agent and Payer are the same, enter blanks.
707-715 Payer’s U.S. TIN 9 Enter the Payer’s U.S. Taxpayer Identification Number if there is an entry in the Payer Name Field; otherwise, enter blanks.
716-727 State Income Tax Withheld 12 If State Tax has been withheld, enter that amount in whole dollars (do not enter cents). Right-justify the information and fill unused positions with zeros. If this field is not utilized, enter zeros.
Note: This amount is not included in the U.S. Federal Tax fields.
728-737 Payer’s State Tax Number 10 Enter the employer state I.D. number if assigned by the state. Left-justify the information and fill unused positions with blanks.
738-739 Payer’s State Code 2 Enter the two-character State Code abbreviation.
740-760 Special Data Entries 21 This field may be used for the filer’s own purposes. If this field is not utilized, enter blanks.
761 U.S. Federal Tax Withheld Indicator 1 Required. Indicate if the U.S. Federal tax withheld was correct or incorrect using the following values:
• 0 = Correctly reported
• 1 = Over withheld
• 2 = Under withheld
Note : Please refer to Total withholding Credit positions 383-394.
762-783 Recipient’s Foreign Tax I.D. Number 22 Enter the recipient’s identifying number. Use only characters listed in Note 3. Left-justify the information and fill unused positions with blanks.
784-809 Reserved 26 Enter blanks.
810 Amended Return Indicator 1 Required for amended returns only. Enter the appropriate code:
      Code Definition
      G A one-step transaction amended return or the first of a two-step transaction amended return
      C The second transaction of a two-step transaction amended return
      Blank If this is not a return being submitted to amend information already processed by IRS
Note: Amended C and G coded records must be reported using separate Payer “W” Records. Refer to Part A, Sec. 9, for specific instructions on how to file amended returns. Non-coded records cannot be submitted in Amended files.
811-818 Record Sequence Number 8 Required. Enter the number of the record as it appears within the file. The record sequence number for the “T” Record will always be “1” (one), since it is the first record on the file and there can only be one “T” Record in a file. Each record, thereafter, must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” Record sequence number would appear as “00000001” in the field, the first “W” Record would be “00000002,” the first “Q” Record, “00000003,” the second “Q” Record, “00000004,” and so on until the final record of the file, the “F” Record.
819-820 Blank or Carriage Return Line Feed 2 Enter blanks or carriage return line feed (CR/LF) characters.
Recipient “Q” Record Layout
Record Type Return type Indicator Pro rata Basis Reporting Income Code Gross Income Withholding Allowance Net Income
1 2 3 4-5 6-17 18-29 30-41
Tax Rate Exemption Code Recipient’s Country of Residence Code for Tax Purposes Reserved Amount Repaid Recipient Account Number Recipient Code
42-45 46-47 48-49 50-59 60-71 72-91 92-93
Recipient’s Name Line-1 Recipient’s Name Line-2 Recipient’s Name Line-3 Recipient’s Street Line-1 Recipient’s Street Line-2 Recipient’s City Recipient’s State
94-133 134-173 174-213 214-253 254-293 294-333 334-335
Recipient’s Province Code Recipient’s Country Code Postal or ZIP Code Recipient’s U.S. TIN Recipient’s U.S. TIN Type U.S. Federal Tax Withheld Withholding By Other Agents
336-337 338-339 340-348 349-357 358 359-370 371-382
Total Withholding Credit Reserved NQI/FLW-THR/PTP Name Line-1 NQI/FLW-THR/PTP Name Line-2 NQI/FLW-THR/PTP Name Line-3 Reserved NQI/FLW-THR/PTP Street Line-1
383-394 395-400 401-440 441-480 481-520 521-522 523-562
NQI/FLW-THR/PTP Street Line-2 NQI/FLW-THR/PTP City NQI/FLW-THR/PTP State Code NQI/FLW-THR/PTP Province Code NQI/FLW-THR/PTP Country Code NQI/FLW-THR/PTP Postal Code or ZIP Code NQI/FLW-THR/PTP U.S. TIN
563-602 603-642 643-644 645-646 647-648 649-657 658-666
Payer’s Name Payer’s U.S. TIN State Income Tax Withheld Payer’s State Tax Number Payer’s State Code Special Data Entries U.S. Tax Federal Withheld Indicator
667-706 707-715 716-727 728-737 738-739 740-760 761
Recipient’s Foreign Tax I.D. Number Reserved Amended Return Indicator Record Sequence Number Blank or Carriage Return Line Feed
762-783 784-809 810 811-818 819-820

Sec. 6. Reconciliation “C” Record

.01 The “C” Record is a fixed record length of 820 positions and all positions listed are required. The “C” Record is a summary of the number of “Q” Records for each Withholding Agent, Gross Amount Paid, and Total Withholding Credit.

.02 This record will be written after the last “Q” Record filed for a given withholding agent. For each “W” Record and group of “Q” Records on the file, there must be a corresponding “C” Record.

.03 All alpha characters entered in the “C” Record must be upper case.

Record Name: Reconciliation “C” Record
Field Positions Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “C.”
2-9 Total “Q” records 8 Required. Enter the total number of “Q” Records for this withholding agent. Do not enter all zeros. For example, 53 “Q” Records are entered as 00000053. See Part A, Sec. 4, Filing and Retention Requirements. Right-justify the information and fill unused positions with zeros.
10-15 Blank 6 Enter blanks.
16-30 Total Gross Amount Paid 15 Required. Enter the total gross income amount in whole dollars (do not enter cents). For example report $600.00 as 000000000000600. An income amount other than zero must be shown. Right-justify the information and fill unused positions with zeros.
31-45 Total Withholding Credit 15 Required. Enter the total aggregate amount of tax withheld by you and any other withholding agent. This is the aggregate total amount from the U.S. Federal Tax Withheld and Withholding By Other Agents fields. Enter the amount in whole dollars (do not enter cents). For example report $600.00 as 000000000000600. Right-justify the information and fill unused positions with zeros.
46-810 Reserved 765 Enter blanks.
811-818 Record Sequence Number 8 Required. Enter the number of the record as it appears within the file. The record sequence number for the “T” Record will always be “1” (one), since it is the first record on the file and there can only be one “T” Record in a file. Each record, thereafter, must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” Record sequence number would appear as “00000001” in the field, the first “W” Record would be “00000002,” the first “Q” Record, “00000003,” the second “Q” Record, “00000004,” and so on until the final record of the file, the “F” Record.
819-820 Blank or Carriage Return Line Feed 2 Enter blanks or carriage return line feed (CR/LF) characters.
Reconciliation “C” Record Layout
Record Type Total “Q” Records Blank Total Gross Amount Paid Total WithholdingCredit Reserved Record Sequence Number
1 2-9 10-15 16-30 31-45 46-810 811-818
Blank or Carriage Return Line Feed            
819-820            

Sec. 7. End of Transmission “F” Record

.01 The “F” Record is a fixed record length of 820 positions and all positions listed are required. The “F” Record is a summary of the number of withholding agents in the entire file.

.02 This record will be written after the last “C” Record of the entire file. End the file with an End of Transmission “F” Record. No data will be read after the “F” Record. Only a “C” Record may precede the “F” Record.

.03 All alpha characters entered in the “F” Record must be upper case.

Record Name: End of Transmission “F” Record
Field Positions Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “F.”
2-4 Withholding Agent Count 3 Required. Enter the total number of withholding agents on this file. This count must be the same as the total number of “W” Records. Right-justify the information and fill unused positions with zeros.
5-810 Reserved 806 Enter blanks.
811-818 Record Sequence Number 8 Required. Enter the number of the record as it appears within the file. The record sequence number for the “T” Record will always be “1” (one), since it is the first record on the file and there can only be one “T” Record in a file. Each record, thereafter, must be incremental by one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” Record sequence number would appear as “00000001” in the field, the first “W” Record would be “00000002,” the first “Q” Record, “00000003,” the second “Q” Record, “00000004,” and so on until the final record of the file, the “F” Record.
819-820 Blank or Carriage Return Line Feed 2 Enter blanks or carriage return line feed (CR/LF) characters.
End of Transmission “F” Record Layout
Record Type Withholding Agent Count Reserved Record Sequence Number Blank or Carriage Return Line Feed
1 2-4 5-810 811-818 819-820

Part D. Extensions of Time and Waivers

Sec. 1. General - Extensions

.01 Withholding agents can get an automatic 30-day extension of time to file by completing Form 8809, Application for Extension of Time to File Information Returns. In addition, a request for an extension of time can be submitted in an electronic file or online through the Filing Information Returns Electronically (FIRE) system.

Note

Note: IRS encourages the withholding agent/transmitter community to use the online fill-in form in lieu of the paper Form 8809. A transmitter control code (TCC) is not required to use the online fill-in form option.

.02 To complete the fill-in Form 8809 online on the FIRE system, (See Part B, Sec. 7, for instructions on connecting to the FIRE system.) at the Main Menu, click “Extension of Time Request” and then click “Fill-in Extension Form.” This option is only used to request an automatic 30-day extension. Extension requests completed online through the FIRE system receive an instant response if completed properly and timely.

.03 A paper Form 8809 may be submitted to IRS at the address listed in .08 of this section. This form may be used to request an extension of time to file information returns submitted on paper or filed electronically. A separate form must be completed for each withholding agent. Form 8809 may be computer generated or photocopied. Be sure to use the most recently updated version and include all the pertinent information.

.04 To be considered, an extension request must be postmarked, transmitted or completed online by the due date of the returns; otherwise, the request will be denied. (See Part A, Sec. 7, for due dates.) If requesting an extension of time to file several types of forms, use one Form 8809; however, Form 8809 or an extension file must be submitted no later than the earliest due date. For example, if requesting an extension of time to file both Forms 1099-INT and 1042-S, submit Form 8809 on or before February 28 (or March 15 if filing the returns electronically). A signature and a reason for the request are not required when requesting an automatic 30-day extension.

.05 As soon as it is apparent that a 30-day extension of time to file is needed, an extension request should be submitted. Request an extension for the current tax year only. IRS does not begin processing extension requests until January. It may take up to 30 days for IRS to respond to a paper extension request. Extensions completed online through the FIRE system receive instant results.

.06 Under certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional or necessary information must be resubmitted within twenty days of the date of the letter.

.07 Requesting an extension of time for multiple withholding agents should be done by completing the online fill-in form or in an electronic file (see Sect. 3 for the record layout) through the FIRE system. A separate Form 8809 must be completed online for each withholding agent when using the fill-in form option.

.08 All requests for an extension of time filed on paper Forms 8809 must be sent using the following address:

  Internal Revenue Service  
  Information Returns Branch  
  Attn: Extension of Time Coordinator  
  240 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430  

Note

Note: Due to the large volume of mail received by IRS and the time factor involved in processing Extension of Time (EOT) requests, it is imperative that the attention line be present on all envelopes or packages containing Form 8809.

.09 Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns, and delivered by United States mail to IRS after the due date, are treated as timely under the “timely mailing as timely filing” rule. A similar rule applies to designated private delivery services (PDSs). Notice 97-26, 1997-17 I.R.B. 6, provides rules for determining the date that is treated as the postmark date. For items delivered by a non-designated Private Delivery Service (PDS), the actual date of receipt by IRS will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 2004-83, 2004-52 I.R.B. 1030 the actual date of receipt by IRS will be used as the filing date. The timely mailing rule also applies to furnishing statements to recipients and participants.

. 10 Transmitters requesting an extension of time with an electronic file will receive the file status results online. If the extension requests are denied, the transmitters will receive a denial letter accompanied by a list of withholding agents covered under that denial.

.11 If an extension request is approved, the approval notification should be kept on file. Do not send the approval notification or copy of the approval notification to IRS or to the service center where the paper returns are filed. (An exception to this rule is: When filing Form 8027 on paper only, attach a copy of the approval letter. If an approval letter has not been received, attach a copy of the timely filed Form 8809.)

.12 If an additional extension of time is needed, a Form 8809 and/or extension file must be sent by the initial extended due date. Check the box on the form to indicate that an additional extension is being requested. Failure to properly complete and sign Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of Form 8809. Be sure to include the reason an additional extension is needed. If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for the IRS response to your second extension request. Requests for an additional extension of time to file information returns are not automatically granted. Requests for additional time are granted only in cases of extreme hardship or catastrophic event. The IRS will send a letter of explanation approving or denying requests for an additional extension of time. (Refer to .11 of this Section.)

Sec. 2. Specifications for Filing Extensions of Time Electronically

.01 The specifications in Sec. 3 include the required 200-byte record layout for extensions of time to file requests submitted electronically. The instructions for the information that is to be entered in the record are also included. Filers are advised to read this section in its entirety to ensure proper filing.

.02 If a filer does not have a Transmitter Control Code (TCC), Form 4419, Application for Filing Information Returns Electronically (FIRE), must be submitted to obtain a TCC. This number must be used to submit extension requests in an electronic file. (See Part A, Sec. 6.)

.03 If requesting an additional extension of time, a Form 8809 must be faxed to IRB the same day as the transmission. Be sure to include a signature and the reason an additional extension is needed.

.04 Do not submit tax year 2012 extension requests filed electronically before January 4, 2013.

Sec. 3. Record Layout - Extension of Time

.01 Positions 6 through 188 of the following record should contain information about the withholding agent for whom the extension of time to file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.

Record Layout for Extension of Time
Field Position Field Title Length Description and Remarks
1-5 Transmitter Control Code 5 Required. Enter the five-character alphanumeric Transmitter Control Code (TCC) issued by IRS. Only one TCC per file is acceptable.
6-14 Withholding Agent TIN 9 Required. Enter the valid nine-digit EIN/SSN assigned to the withholding agent. Do not enter blanks, hyphens or alpha characters. All zeros, ones, twos, etc., will have the effect of an incorrect TIN. For foreign entities that are not required to have a TIN, this field may be blank; however, the Foreign Entity Indicator in position 187 must be set to “X.”
15-54 Withholding Agent Name 40 Required. Enter the name of the withholding agent whose TIN appears in positions 6-14. Left-justify the information and fill unused positions with blanks.
55-94 Second Withholding Agent Name 40 Required. If additional space is needed, this field may be used to continue name line information (for example, c/o First National Bank); otherwise, enter blanks.
95-134 Withholding Agent Address 40 Required. Enter the withholding agent’s address. The street address should include the number, street, apartment, or suite number (or P.O. box if mail is not delivered to a street address)
135-174 Withholding Agent City 40 Required. Enter the withholding agent’s city, town, or post office.
175-176 Withholding Agent State 2 Required. Enter the withholding agent’s valid U.S. Postal Service state abbreviation. (Refer to Part A, Sec. 14.)
177-185 Withholding Agent ZIP Code 9 Required. Enter the withholding agent’s ZIP Code. If using a five-digit ZIP Code, left-justify the information and fill unused positions with blanks.
186 Document Indicator (See Note below.) 1 Required. Enter “4.”
Note: Do not enter any other values in this field. Submit a separate record for each document. For example, when requesting an extension for Form 1099-INT and Form 1042-S for the same withholding agent, submit one record with “2” coded in this field and another record with “4” coded in this field. When requesting an extension for Form 1099-DIV and Form 1099-MISC for the same withholding agent, submit one record with “2” coded in this field.
187 Foreign Entity Indicator 1 Enter “X” if the withholding agent is a foreign entity.
188 Recipient Request Indicator (See Note below.) 1 Enter “X” if the extension request is to furnish statements to the recipients of the information returns.
Note: A separate file is required for this type of extension request. A file must contain either all blanks or all Xs in this field.
189-198 Blank 10 Enter blanks.
199-200 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Extension of Time Record Layout
Transmitter Control Code Withholding Agent TIN Withholding Agent Name Second Withholding Agent Name Withholding Agent Address Withholding Agent City
1-5 6-14 15-54 55-94 95-134 135-174
Withholding Agent State Withholding Agent Zip Code Document Indicator Foreign Entity Indicator Foreign Entity Indicator Blank
175-176 177-185 186 187 188 189-198
Blank or CR/LF          
199-200          

Sec. 4. Extension of Time for Recipient Copies of Information Returns

.01 Request an extension of time to furnish the statements to recipients of Forms 1042-S by submitting a letter to IRS at the address listed in Part D, Sec.1.08. The letter should contain the following information:

  1. Withholding agent name

  2. TIN

  3. Address

  4. Type of return

  5. Specify that the extension request is to provide statements to recipients

  6. Reason for the delay

  7. Signature of withholding agent or duly authorized person

.02 Requests for an extension of time to furnish statements to recipients of Forms 1042-S are not automatically approved. If approved, an extension will allow a maximum of 30 days from the due date. The request must be postmarked no later than the date the statements are due to the recipients.

.03 Generally, only the withholding agent may sign the letter requesting the extension for recipient copies. If a transmitter has a contractual agreement with a withholding agent to submit extension requests on the withholding agent’s behalf, the transmitter should state so in the letter requesting the extension.

.04 Requests for extensions of time to file recipient copies for more than ten withholding agents are required to be submitted electronically. (See Sec. 3, for the record layout.). When requesting extensions of time for recipient copies, a signed letter must be faxed to IRB by the transmitter the same day as the transmission. Be sure to include the reason an extension for the recipient copies is needed.

.05 Transmitters submitting an extension of time for recipient copies with an electronic file should not submit a list of withholding agent names and TINs with the letter since this information is included in the electronic file.

.06 The online fill-in Form 8809 extension option cannot be used to request an extension to furnish statements to recipients.

Sec. 5. Form 8508, Request for Waiver From Filing Information Returns Electronically

.01 If a withholding agent is required to file electronically but fails to do so and does not have an approved waiver on record, the withholding agent will be subject to a penalty of $100 per return in excess of 250. (For penalty information, refer to the Penalty Section of the 2012 General Instructions for Certain Information Returns.)

.02 If withholding agents are required to file original or amended returns electronically, but such filing would create an undue hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver from Filing Information Returns Electronically, to IRS. Form 8508 can be obtained on the IRS website at www.IRS.gov or by calling 1-800-829-3676.

.03 Although a withholding agent may submit as many as 249 returns on paper, IRS encourages electronic filing. Once the 250 threshold has been met, filers are required to submit any returns in excess of 250 electronically. If a waiver for original documents is approved, any corrections for the same type of returns will be covered under that waiver.

.04 Generally, only the withholding agent may sign Form 8508. A transmitter may sign if given power-of-attorney; however, a letter signed by the withholding agent stating this fact must be attached to Form 8508.

.05 A transmitter must submit a separate Form 8508 for each withholding agent. Do not submit a list of withholding agents.

.06 All information requested on Form 8508 must be provided to IRS for the request to be processed.

.07 The waiver, if approved, will provide exemption from the electronic filing requirement for the current tax year only. Withholding agents may not apply for a waiver for more than one tax year at a time.

.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.

.09 Filers are encouraged to submit Form 8508 to IRS at least 45 days before the due date of the returns. IRS does not process waiver requests until January. Waiver requests received prior to January are processed on a first come, first serve basis.

.10 All waiver requests must be sent to the following address:

  Internal Revenue Service  
  Information Returns Branch  
  Attn: Extension of Time Coordinator  
  240 Murall Drive, Mail Stop 4360  
  Kearneysville, WV 25430  

.11 File Form 8508 for the W-2 series of forms with IRS, not SSA.

.12 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS to respond to a waiver request.

.13 If a waiver request is approved, keep the approval letter on file. Do not send a copy of the approved waiver to the service center where the paper returns are filed.

.14 An approved waiver only applies to the requirement for filing information returns electronically. The withholding agent must still timely file information returns with the appropriate service center on the official IRS paper forms or an acceptable substitute form.


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