3.21.111  Chapter Three Withholding Returns

Manual Transmittal

November 08, 2013

Purpose

(1) This transmits revised IRM 3.21.111, International Returns and Documents Analysis - Chapter Three Withholding Returns.

Scope

This updates IRM 3.21.111, addressing code and edit procedures for Form 1042-T and Form 1042-S. These procedures have a direct impact on Error Resolution (ERS) processing and the Chapter Three Withholding (CTW) Database.

Material Changes

(1) Various editorial changes were made throughout the IRM.

(2) IRM 3.21.111.5.1.5(5) - Added Panama (City) to list of address editing.

(3) IRM 3.21.111.5.1.5(6) - Added Australian State Abbreviation Codes.

(4) IRM 3.21.111.5.1.7(3) - Changed instructions per TIGTA Audit #201340023, LB and I Document Matching (Forms 1042/1042-S). Count the number of paper Form 1042-S attached to Form 1042-T. If the number on Line 1b is incorrect, edit the correct amount.

(5) IRM 3.21.111.6.1.5 - Deleted Income Code 20 and added Income Codes 42 and 43.

(6) IRM 3.21.111.6.1.8(2) - Deleted Income Code 20 and added Income Code 42.

(7) IRM 3.21.111.6.1.9(2) - Deleted Tax Rate 31.

(8) IRM 3.21.111.6.1.10(4) - Extended Exemption Codes from 9 to 10 for zero Tax Rate.

(9) IRM 3.21.111.6.1.13(4) - Cross out zero or dash if present.

(10) IRM 3.21.111.6.1.17(4) - Added Invalid characters that are not on the list should be edited out.

(11) IRM 3.21.111.6.1.18(4) - Added Panama (City) to list of address editing.

(12) IRM 3.21.111.6.1.18(5) - Added Australian State Abbreviation Codes.

(13) IRM 3.21.111.6.1.20.5c - Changed Income Code from 20 to 42 or 43.

(14) IRM 3.21.111.6.1.21(2) - Added Recipient Codes 13 and 14 to valid codes for Withholding Rate Pool.

(15) IRM 3.21.111.6.1.21(4) - Added Invalid characters that are not on the list should be edited out.

(16) IRM 3.21.111.6.1.21.(5) - Added - If Box 13e is blank, and the Country Code cannot be determined, leave blank and continue processing.

(17) IRM 3.21.111.6.1.21(9) - Added Panama (City) to list of address editing.

(18) IRM 3.21.111.6.1.21(10) - Added Australian State Abbreviation Codes.

Effect on Other Documents

IRM 3.21.111, dated October 26, 2012 (effective 01-02-2013), is superseded. . This IRM incorporates the following Interim Procedural Updates (IPU): 13U1139 and 13U1180.

Audience

Wage and Investment - Ogden Submission Processing Campus (OSPC) - Tax Examiners in Document Perfection Branch

Effective Date

(01-01-2014)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.21.111.1  (01-01-2014)
Chapter Three Withholding Legislation

  1. IRC Section 1441 through IRC Section 1464, Chapter Three Withholding (CTW)- Changes to IRC Section 1441 and IRC Section 1442, state, a person that makes a payment of U.S. source interest, dividends, royalties, and certain other types of income to a foreign person must generally deduct and withhold 30% from the payment. A lower rate of withholding may apply under the Code, the regulations, or an income tax treaty. Generally, a payor of these types of income must also report the payments on Form 1042-S.

  2. Beginning January 1, 2001, the regulations under Chapter 3 (IRC Section 1441 through IRC Section 1464) and Chapter 61 (IRC Section 6041 through IRC Section 6050N) of the Code were affected by these changes. These regulations, together with Revenue Procedure 2000-12, Qualified Intermediary (QI) Revenue Procedure, represented the culmination of a major effort begun in 1992 to revamp the withholding and reporting on payments of U.S. source income to foreign persons.

  3. The regulations and the revenue procedure represented a significant change in the way withholding taxes were collected and information reported.

  4. The regulations required both U.S. and foreign financial institutions to change their tax withholding and information reporting systems.

3.21.111.2  (01-01-2014)
Purpose of Document Perfection

  1. The purpose of Document Perfection is to code and edit (perfect) returns and other documents for input through the Integrated Submissions and Remittance Processing (ISRP) System.

  2. In addition, Document Perfection forwards any other documents or attachments, not related to the processing of the return, to the appropriate function.

  3. Document Perfection is not responsible for the mathematical verification of the return or for checking the validity of the documents being processed.

  4. The Chapter Three Withholding database will perform math verification, validity, and consistency checks after the returns and other documents are coded and edited, as prescribed in this Section.

3.21.111.2.1  (01-01-2014)
Purpose of Section

  1. This section of the Internal Revenue Manual (IRM) provides procedures for reviewing and processing:

    • Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, Exhibit 3.21.111-1

    • Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Exhibit 3.21.111-2

  2. This IRM is designed to be used by Ogden Code and Edit Tax Examiners.

    Note:

    Paper Form 1042-T and Form 1042-S are filed at the Ogden Submission Processing Campus (OSPC) only. Those erroneously filed at other locations are to be forwarded to OSPC (Ogden) daily.

  3. The IRM can't address all issues that may present themselves. In some cases, it may be necessary to refer them to your Subject Matter Expert (SME), lead, and/or manager, to make a determination for corrective action to be taken.

  4. The Form 1042-T is processed under:

    • Program Code: 71700

    • File Source: Payor Master File (PMF)

    • Tax class: 5

    • Master File Transaction (MFT): 88

    • Document Code: 01

    • Document Locator Number (DLN): 60501ddd000-999 - (OSPC paper only)

    • DLN: 29501ddd000–999 (OSPC - filed electronically)

    • Return Due Date: March 17, 2014

    • Extended Return Due Date: May 15, 2014

  5. The Form 1042-S is processed under:

    • Program Code: 71720

    • File Source: Information Returns Master File (IRMF)

    • Tax Class: 5

    • MFT: 12

    • Document Code: 02

    • DLN: 60502ddd000-999 - OSPC - Paper ONLY

    • DLN: 29502ddd000-999 (first 100,000 filed *) - OSPC

    • DLN: 81502ddd000-999 (second 100,000 filed *) - OSPC

    • DLN: 82502ddd000-999 (third 100,000 filed *) - OSPC

    • DLN: 83502ddd000-999 (fourth 100,000 filed *) - OSPC

    • DLN: 84502ddd000-999 (fifth 100,000 filed *) - OSPC

    • DLN: 85502ddd000-999 (sixth 100,000 filed *) - OSPC

    • DLN: 86502ddd000-999 (seventh 100,000 filed *) - OSPC

    • DLN: 87502ddd000-999 (eight 100,000 filed *) - OSPC

    • DLN: 88502ddd000-999 (ninth 100,000 filed *) - OSPC

      Note:

      * Indicates files received through Enterprise Computing Center - Martinsburg (ECC-MTB) in one processing day. The DLN will loop if the File Location Code (FLC) is not changed after each 100,000 records identified. This DLN's range are the FLCs limited to work processed by the Ogden Submission Processing Campus (OSPC) only. Specific DLNs will be utilized which are unique to Ogden (See list above).

    • Return Due Date: March 17, 2014

    • Extended Return Due Date: May 15, 2014

3.21.111.3  (01-01-2014)
IRS Employee Contacts Section 3705(a)

  1. Background - The Restructuring and Reform Act of 1998, Section 3705 provides identification requirements for all IRS employees working tax related matters. IRS employees are required to give their name and unique identification number during taxpayer telephone, face-to-face and written contact. In addition, a telephone number is required on all taxpayer correspondence. This will provide taxpayers with enough information to identify an IRS employee who has previously assisted with tax related matters.

  2. Key points- All IRS employees who communicate, by telephone, correspondence or face-to-face, with taxpayers, or their personal representatives, on tax related matters are required to provide (at a minimum) the following information:

    1. Telephone Contact: Their title (e.g., Mr., Mrs., Ms., Miss), their last name, and their badge identification (ID card) number.

    2. Face-to-Face: Their title (e.g., Mr., Mrs., Ms., Miss), provided as appropriate during the conversation, their last name and their badge identification (ID card) number.

    3. Correspondence: All correspondence must include a telephone number where the taxpayer's question can be answered. In addition, manually generated and handwritten correspondence must have their title (e.g., Mr., Mrs., Ms., Miss), last name, and Integrated Data Retrieval System (IDRS), letter system, or their badge identification (ID card) number.

    4. The IDRS number and numbers for certain letter systems are automatically generated. If it is not generated, or a handwritten note is prepared, the badge identification (ID card) number must be used. Toll-free employees may also provide their location for identification purposes. E-mail and faxes to taxpayers, on tax related matters, are considered manually-generated correspondence and must include the required information. See IRM 11.3.1.11, Records Disposition For Disclosure, for faxing guidance.

    5. Correspondence, whether sent directly to the taxpayer or to the taxpayer’s personal representative, must contain the required information.

    6. When a taxpayer insists on speaking with a specific employee who previously handled their inquiry or request, or complains about the level of service previously provided, every attempt should be made to resolve the taxpayer’s inquiry. If the issue cannot be resolved, the employee should refer the inquiry, using established procedures, to his or her manager.

    7. Correspondence letters will require a specific employee name and telephone number only if the employee initiating the correspondence is in the best position to respond to any questions that the taxpayer may have about the correspondence or the employee is asking the taxpayer to provide additional case-related information.

    8. Otherwise, if the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.

    9. Secretaries, receptionists or other people who answer the telephone in functional offices need to identify themselves and should provide their badge identification (ID Card) number only if they are answering telephones which are routinely used to provide tax or account information.

    10. It is not necessary to repeat the badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer, and the employee has given the taxpayer (either by telephone or in-person) their aforementioned number on the first contact.

3.21.111.3.1  (01-01-2014)
♦Taxpayer Advocate Service (TAS)♦

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS) (see IRM Part 13, Taxpayer Advocate Service) when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS)Case Criteria) and you can’t resolve the taxpayer’s issue the same day. The definition of "same day" is within 24 hours. "Same day" cases include cases you can completely resolve in 24 hours, as well as cases in which you have taken steps within 24 hours to begin resolving the taxpayer's issue. Do not refer "same day " cases to TAS unless they meet TAS criteria and the taxpayer asks to be transferred to TAS. Refer to IRM 13.1.7.4, Same-Day Resolution by Operations. When referring cases to TAS, use Form 911, "Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order)" , and forward to TAS.

3.21.111.3.2  (01-01-2014)
Correspondence Imaging Systems (CIS) Returns

  1. Correspondence Imaging system (CIS) is an inventory system for scanning all Accounts Management (AM) receipts into digital images and working the cases from those images.

  2. CIS returns are identified with "CIS Image...Do not correspond for Signature" stamped below the signature line or annotated on the front of the document.

  3. Accounts Management is required to ensure CIS returns are complete for processing. If the CIS return is incomplete, void the DLN and return to AM to secure any missing information.

    Note:

    Do not correspond for missing information on CIS returns.

3.21.111.3.3  (01-01-2014)
Correspondence Action

  1. Correspondence includes all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited, and includes:

    • Responses to IRS requests for information or data;

    • requests for information, including that which may accompany tax returns;

    • annotated notice responses; or

    • other correspondence providing additional information or disputing a notice.

  2. Completely examine the form to ensure that all conditions requiring correspondence can be included in the same letter. The taxpayer should not be subjected to repeated contact for missing data. However, if you fail to get all the data the first time, and there is no way to properly process the form without it, you must not penalize the taxpayer for the oversight made by IRS. Instead, write the taxpayer a letter of apology and secure the data.

    Note:

    For more information on Correspondence, see IRM 3.0.273, Administrative Reference Guide.

  3. Initiate correspondence with a 1791C Letter, U.S. Annual Return Of Income Paid at Source Incomplete for Processing Form 1042, where applicable, unless other instructions are given in the IRM.

  4. Code and Edit will correspond on unnumbered documents and when the withholding agent has submitted a Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, as a transmittal document for Form 1042-S.

  5. Prepare Form 13653, Request for Missing Information for Form 1042, Annual Withholding Tax Return for US Source Income of Foreign Persons. IRM 3.21.111.3.3.1 below for additional information.

3.21.111.3.3.1  (01-01-2014)
Form 13653, Request for Missing Information for Form 1042, Annual Withholding Tax Return for US Source Income of Foreign Persons

  1. Prepare Form 13653 when the withholding agent has completed a Form 1042 as a transmitting record for Form 1042-S, and it is not possible to dummy all of the required fields on the Form 1042-T.

  2. When preparing Form 13653, take the following actions:

    1. Attach completed Form 13653 to the Form 1042 below the entity area, and

      Reminder:

      Complete the "For IRS Use Only" box by inputting your Computer Assisted Pipeline Review (CAPR) stamp and current date.

    2. Circle the original Received Date, if shown, and withdraw the Form 1042 from the batch along with any associated Form 1042-S and place in the designated area to be returned to the taxpayer.

      Caution:

      Carefully review for all correspondence issues before completing Form 13653. This will ensure that you correspond with the taxpayer only once for multiple issues.

  3. The following table will provide guidance on using the Form 13653:

    IF THEN on Form 13653
    Form 1042 is being used as a transmittal record for Form 1042-S, Check box 4, provide a Form 1042-T and return all associated Form(s) 1042-S to the withholding agent, continue processing.
    Any other correspondence conditions exist, Check box 8, and write the condition in the space provided, continue processing.

    Note:

    Be sure to write clearly.

3.21.111.4  (01-01-2014)
General Processing Procedures

  1. General - Enter all edit marks with an erasable, red pen. Never obliterate the original entry on a document when deleting or correcting an entry. Care should be exercised to insure that the original entry remains legible.

  2. The only items to be edited are those to be transcribed, except where the instructions require editing of a non-transcribed item. The following criteria should also be considered when editing a document:

    1. A zero, dash, or none should be considered as a significant entry unless otherwise specified for the particular line item.

    2. If a money amount must be entered, edit the field in dollars only.

      Note:

      If any dollar amounts are reflected in foreign currency (i.e., Pound Sterling, Euro Dollars, Lira, etc.), return to the withholding agent advising them to submit all monetary information in U.S. dollars.

    3. Edit any misplaced or illegible transcription entry to the proper transcription line (T-Line). A carefully edited arrow (or double arrow) may be used if it will leave no room for doubt as to where the entry belongs.

      Note:

      The entry may have to be computed from other figures on the return or attachment.

    4. Delete any misplaced or extraneous information from T-Line(s).

    5. If numeric line items contain alpha characters, convert to numerics (i.e., line contains "One," Tax Examiner (TE) should delete the entry and enter "1" ).

    6. All entry fields should reflect positive amounts (Entry fields should never show negative amounts). Delete any negative entry.

    7. Delete all titles from name lines, such as those listed in the table below:

      Title Abbreviation
      Mister, Misses, Miss Mr., Mrs., Ms.
      Reverend Rev.
      Captain, Sergeant, General, etc. Cpt., Sgt., Gen., etc.
      Doctor Dr.
      Honorable Hon.
      Governor Gov.

  3. If a Form 1042-T or Form 1042-S has been filed on a form, or in a format, that does not exactly match the official IRS form, correspond with the withholding agent using Letter 1791c for the correct documents. If contact is not possible or there is no reply, dummy the information provided to a blank, current year Form 1042-T or Form 1042-S, as appropriate.

    Note:

    Follow no-reply procedures until further notice.

  4. Only one Income Code may be present on each Form 1042-S. If the Form 1042-S information is filed in a consolidated format (i.e. listing, multiple Income Codes on one form), contact the withholding agent using Letter 1791c to request separate forms for each Recipient and Income Code. If contact is not possible or if there is no reply, dummy a Form 1042-S for each Recipient.

    Note:

    Follow no-reply procedures until further notice.

  5. Prior year forms will be edited to the current year format. All forms that are nine years prior to the current year will be accepted. All other prior year forms will be destroyed by following procedures for Classified Waste (CW).

3.21.111.4.1  (01-01-2014)
Types of Edit Marks

  1. The tax examiner should use the following types of edit marks:

    1. "X" to the left of an entry -The "X" indicates to the terminal operator that the item to the right of the "X" should not be transcribed but rather the edited entry should be transcribed. The "X" is the preferred marking on returns.

    2. Circled entry -This edit mark indicates to the terminal operator that the entry should not be transcribed. If the taxpayer circles an entry, edit the amount circled.

      Note:

      Generally speaking, an "X" is used on tax data entries and a circle is used on entity data.

    3. Underlined entry -This edit mark is a signal to the terminal operator to be sure to transcribe the item.

    4. Arrow -This edit mark is used to show a misplaced entry. Use the arrow if the taxpayer has misplaced an item that is close to the correct line and there is no room for doubt as to where the entry belongs. A double arrow may be used if the same figure is to be transcribed in two different places provided local management has established that ISRP will transcribe the data in both places as well as any required transcription data between the two arrows.

3.21.111.4.2  (01-01-2014)
Document Controls

  1. Block Control Documents - Each block of documents processed by the Automated Data Processing (ADP) System is required to have a Block Control Document attached for control and identification purposes.

  2. The total number of returns is usually shown by a circled number for a partial block or blank for a full block of 100.

    IF THEN
    The block is partial and the number is not shown, Circle one number higher than the last sequence number of the form.
    Blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, Return the block to the originating area (through Accounting) for correction.

  3. Form 1332, Block and Selection Record- Used for batch transmittal of Non-Remittance documents (NR).

    Note:

    Do not circle the total number of documents for an unnumbered block.

3.21.111.4.2.1  (01-01-2014)
Document Locator Number (DLN)

  1. Document Locator Number (DLN):

    1. The DLN is the basic identification number assigned to each document processed by the ADP.

    2. This number is assigned when the document is blocked and brought under Accounting Control.

    3. It will be used to locate the document as long as it (or a substitute document) remains in the files.

    4. The parts of the DLN are:

      1 2 3 4 5 6 7
      FLC Tax Class Doc Code Julian Date Block Series Serial # List Year

      DLN part Description
      1 The first two digits of the DLN is the FLC (or Campus Code).
      2 The third digit is the tax class.
      3 The fourth and fifth digit is the doc code.
      4 The sixth, seventh, and eighth digits represent the control (Julian) date.
      5 The ninth, tenth and eleventh digit represents the block number.
      6 The twelfth and thirteenth digit are the serial numbers.
      7 The fourteenth digit is the last year digit of the year the DLN was assigned. This digit is computer generated.

3.21.111.4.2.2  (01-01-2014)
Verification of Numbered Blocks of Returns

  1. On numbered blocks, compare the first return in the block to the Form 813-C or Form 1332.

    IF THEN
    The documents have not been blocked,

    Note:

    All documents in a block or a batch should be of the same type.

    Notify your manager of the discrepancy and follow local Submission Processing Campus procedures for correction.
    1. The type of document is determined by a specific Tax Class and Document Code,

    2. The first eleven digits of the DLN of each document in a block should be the same as the corresponding digits stamped on the face of the Form 813-C or Form 1332.

      IF THEN
      There is a difference, Give the block to your manager to reassociate the documents with the correct block control document. It is necessary to check only the DLN of the first document in a block to make the above comparisons of DLNs.

    3. A document may have two different DLNs stamped on it because of re-blocking.

      IF THEN
      Multiple DLNs are present, Circle the incorrect DLN. The correct DLN can be determined from the Form 813-C or Form 1332.

  2. Blocking Returns and Documents - All returns and documents to be input through ISRP are assembled into blocks of 100 documents or less.

3.21.111.5  (01-01-2014)
Form 1042-T, Annual Summary and Transmittal of Forms 1042-S - General Information

  1. Form 1042-T is used to transmit Copy A of paper Form 1042-S. There are different types of Form 1042-S filed (original, amended, pro-rata or amended pro-rata).

  2. Form 1042-T is to be filed by the withholding agent responsible for reporting U.S. Source Income to Foreign Person's on Form 1042-S.

  3. One Form 1042-T must be submitted for each type of paper Form 1042-S attached. Ensure the type of Form 1042-T indicated matches the type indicated on the associated Form(s) 1042-S (Example: If Form 1042-S, Amended Box is checked, the Form 1042-T, Line 1a, Amended box must be checked).

  4. If Form 1042-T is used to transmit more than 250 Form 1042-S then photocopy the Form 1042-T, circle the number of Form 1042-S on the photocopy, prepare a fax cover sheet notating ">250 Form 1042-S" and fax to the Headquarters (HQ) Analyst. Faxing the Form 1042-T should be completed at least once every month. Withholding agents are required via regulations to file 250 or more Form 1042-S electronically. Continue processing the originals.

  5. Form 1042-T and the attached Form(s) 1042-S will be batched and forwarded to Code and Edit.

  6. Form 1042-T and 1042-S will be edited and envelopes removed. The entire batch will be forwarded to numbering.

  7. Numbering will stamp the 1042-T unique DLN in the upper right corner of the Forms 1042-T.

  8. The Form 1042-T DLN will be entered on each associated Form 1042-S in the lower left hand corner.

  9. The Form 1042-S unique DLN will be placed in the upper right corner of the Forms 1042-S.

  10. Numbering will forward the Forms 1042-T and 1042-S to ISRP.

  11. Form 1042-T must be processed through ISRP before Form 1042-S.

  12. DO NOT process any Form 1042-T filed without corresponding Form(s) 1042-S. Form 1042-T should be destroyed, per local procedures, if no Form(s) 1042-S are attached.

    Note:

    See IRM 3.21.111.6, paragraphs (4) and (5), for instructions when Form 1042-S is received with no corresponding Form 1042-T.

3.21.111.5.1  (01-01-2014)
Form 1042-T, Line by Line Editing

  1. The following sections will provide editing procedures for the Form 1042-T. See Exhibit 3.21.111-3 for Form 1042-T transcription lines.

3.21.111.5.1.1  (01-01-2014)
Tax Year

  1. Tax Period - Identifies the period for which the withholding agent is submitting the Form 1042-T.

    1. If Then
      Tax year is other than the current year, missing, or incomplete, Research attached forms to determine correct Tax Period and edit the Tax Period (to the left of the pre-printed tax year) in the YYYY format, per the filer's intent. Circle out the preprinted tax year to delete it.
      Determined from attached forms that Tax Period is other than current year, Remove from current year batch. Forward for batching as prior tax year.
      Tax period is a future year, Edit as current year unless removed from an early filed return.
      Tax year is missing or incomplete and unable to determine, Edit as current year.

      Note:

      The 1042-T is used as a transmittal document for the 1042-S. The 1042-T must be edited or dummied to match the associated 1042-S documents.

      Note:

      If filer has used a prior year form revision, correct all line numbers to conform with current year format.

3.21.111.5.1.2  (01-01-2014)
Received Date

  1. Received Date - Identifies the received date of the Form 1042-T.

    1. This is an 8 position field that must be present.

    2. Only numeric characters (0-9) are valid.

    3. The date must be in MMDDYYYY format.

    4. The date must be stamped/edited below the signature area.

    If Then
    Missing, incomplete, or illegible, Research document or attachments for the Received Date and edit accordingly.
  2. If the received date is not stamped on the Form 1042-T, determine the date in the following order of priority:

    1. The earliest legible postmark date on the envelope.

    2. Service Center Automated Mail Processing System (SCAMPS) date

    3. The Revenue Officer's date of signature.

    4. The taxpayer's date of signature

    5. The DLN Julian Date.

    6. The current date minus 10 days.

    7. For certified mail, If a postmark is not present, look for a USPS.com Track & Confirm record that has been attached to the return. Use the acceptance date on the record to determine timeliness and follow normal editing procedures. If the USPS.com Track & Confirm record is not attached, no action is required.

3.21.111.5.1.3  (01-01-2014)
Employer Identification Number (EIN) - Withholding Agent

  1. This is a 9 position field.

  2. Only numeric characters (0-9) are valid, however, all 0's or all 9's are invalid characters.

    If Then
    Employer Identification Number (EIN) is missing, invalid, incomplete or illegible, or Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is present, Circle the incorrect entry. Research associated Form(s) 1042-S to find Withholding Agent EIN.
    • If found, edit the valid EIN to the left of the incorrect taxpayer entry.

    • If not found, continue processing.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.21.111.5.1.4  (01-01-2014)
Withholding Agent Name Line

  1. Withholding Agent Name Line - Identifies the Withholding Agent Name as established when filing for the EIN or Qualified Intermediary (QI) EIN. This field consists of three line entries.

    1. This field consists of 40 characters for each line (Name Line 1, Name Line 2 and Name Line 3).

  2. Valid characters for name and address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

    Note:

    The percent (%) sign is used to identify "In Care of" and is valid in the first position only.

    Figure 3.21.111-1

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Name Line Editing

3.21.111.5.1.5  (01-01-2014)
Withholding Agent's Address

  1. Withholding Agent's Address - Identifies the withholding agent's address of record. This field consists of entries which identify street, city or town, state, province (if applicable), country (if applicable), and zip or foreign postal code. The withholding agent must have a complete address.

  2. Use the Foreign Address Job Aid (2324-002) for address information and to reduce entries to the appropriate field length, as necessary. The table below lists the field descriptions and lengths:

    Field Length
    Street Line 1 - Required field that identifies the address of record for the withholding agent. The address must consist of number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Exhibit 3.21.111–5, for Street Abbreviations.

    Note:

    If both a street address and a PO Box are present, circle out PO Box.

    40
    Street Line 2 - Used to provide supplemental information pertaining to the withholding agent's street address. 40
    City - Required field which identifies the city or town (or other locality name) of the withholding agent. This field is also used to indicate Army Post Office (APO), Fleet Post Office (FPO) or Diplomatic Post Office (DPO). Enter APO/FPO/DPO in this field, if applicable. 40
    State (Code) - Required field if withholding agent has a domestic address. If the state name is spelled out, do not edit the two digit state code. ISRP will enter the two digit state code. See Exhibit 3.21.111-6, for State Code abbreviations.

    Note:

    If not a U.S. state, territory, or APO/FPO/DPO address, then no State Code will be present.

    2
    Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two character code from the Province Code table above the name of the Province. See Exhibit 3.21.111-9, for Canadian Province Codes. 2
    Country (Code) - Required field if withholding agent has a foreign address. Edit the two character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Exhibit 3.21.111-7, for Country Code Table for editing entity/address. See Figure 3.21.111–9, for Country Code editing procedures.

    Note:

    Possessions, APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient, See IRM 3.21.111.6.1.21(10).

    2
    Foreign Postal/Zip Code - Identifies the foreign or domestic zip code for the withholding agent. See Figure 3.21.111–2, for foreign address editing. Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for additional information on Zip Code ranges. 5-9

  3. Arrow data to the correct position in the series, (i.e., City, Province, Country, Foreign Postal Code.)

  4. If any of these fields are missing, then perfect from attached documents.

  5. If foreign address and country name is Abu Dhabi, Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City, then edit the country name in the city field position and country code in the country name position.

  6. A Foreign Postal Code must be present for all Australian addresses. If the Foreign Postal Code field is blank then edit the field per the table below:

    Note:

    If Postal Code is blank and the state/territory cannot be determined, enter 0000 for the postal code.

    Australian State/Territory State Abbreviation Postal Code
    New South Wales (NSW) and Australian Central Territory (ACT) NSW and ACT 2000 - 2999
    Victoria VIC 3000 - 3999
    Queensland QLD 4000 - 4999
    South Australia SA 5000 - 5799
    Western Australia WA 6000 - 6799
    Tasmania TAS 7000 - 7499
    Northern Territory NT 0800 - 0899
  7. European postal systems frequently do not spell out the name of the country, instead, they will use a prefix to the postal code. Listed below are the prefixes frequently used, along with the number of digits allowed for those countries:

    Country Name Prefix Length
    Austria A 4
    Belgium B 4
    Denmark DK 4
    Finland SK 5
    France F 5
    Germany D 4 or 5
    Hungary H 4
    Italy I 5
    Liechtenstein FL 4
    Norway N 4
    Sweden S 5
    Switzerland CH 4

    Figure 3.21.111-2
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Foreign Address Editing

3.21.111.5.1.6  (01-01-2014)
Pro-rata Basis Reporting Checkbox - Line 1a

  1. Pro-rata Reporting - Identifies whether the withholding agent is reporting pro-rata withholding on attached Form(s) 1042-S.

  2. If the withholding agent checked the box under Line 1a "Also check here if pro-rata (see instructions)," then edit a "1" to the left of the word "Also" and directly under Line 1a.

3.21.111.5.1.7  (01-01-2014)
Number of Paper Forms 1042–S - dotted Line 1b

  1. This is a 5 position numeric field that must be present.

  2. Withholding agents are required to specify the number of paper Form 1042-S they are submitting via Form 1042-T.

  3. Count the number of paper Forms 1042-S attached to Form 1042-T. If the number on Line 1b is incorrect, edit the correct amount.

    Note:

    Form 1042-T should be destroyed, per local procedures, if no Forms 1042-S are attached.

3.21.111.5.1.8  (01-01-2014)
Total Gross Income, Line 2a

  1. Gross Income - Line 2a - Identifies gross income as a total from all associated Form 1042-S. Gross income is the starting point for computing net income and tax withheld.

    1. This is a 15 position numeric field that must be present.

    2. All amounts must be positive. If editing amount, edit in dollars only.

    3. If Line 2a is blank (or zero), determine the entry as follows: calculate the Gross Income Paid total by adding the Box 2 amount from each of the attached Form 1042-S.

    4. If Line 2a is less than Line 2b, Total U.S. Federal tax withheld, then take no action.

3.21.111.5.1.9  (01-01-2014)
Total U.S. Federal Tax Withheld - Line 2b

  1. Total U.S. Federal Tax Withheld - Line 2b - identifies the U.S. Federal Tax withheld from all associated Form 1042-S.

    1. This is a 15 position numeric field that must be present.

    2. All amounts must be positive. If editing amount, edit in dollars only.

    3. If Line 2b is blank, determine the entry as follows, calculate the total U.S. Federal Tax Withheld by adding Box 9, Total withholding credit, of the attached Form 1042-S.

      Note:

      If Line 9, Form 1042-S does not have an entry, compute and enter by adding the amounts on Line 7 and Line 8.

3.21.111.5.1.10  (01-01-2014)
Final Return Checkbox

  1. This is a one (1) position field that may or may not be present. No editing is required.

3.21.111.5.1.11  (01-01-2014)
Signature Area

  1. The withholding agent should sign in the space provided, below the perjury statement.

  2. Facsimile signature submitted as a rubber stamp, mechanical device, or computer software program is acceptable.

  3. Do not question any signature on the return.

  4. Presume that the signature on the return, statement or document is the true signature of the person who actually signed the document.

    Note:

    If signature is missing, do not correspond, continue processing.

3.21.111.5.2  (01-01-2014)
Preparation of Form 1042-T for Transcription and Routing of Associated Form 1042-S

  1. Edit Form 1042-T and attached Form(s) 1042-S. See IRM 3.21.111.4 for processing procedures.

3.21.111.6  (01-01-2014)
Form 1042-S - Foreign Person's U.S. Source Income Subject to Withholding

  1. Form 1042-S data can be filed on paper if there are fewer than 250 income recipients for which data must be reported.

  2. Due to changes to IRC Section 1441 through IRC Section 1464 the Form 1042-S has been completely revised. The Form 1042-S is a five part document with a copy each for the Internal Revenue Service and the withholding agent and three copies for the recipient.

  3. Copy A of the Form 1042-S, for each recipient, should be filed with the Form 1042-T. If multiple copies (Copies B, C, D, and/or E) have been filed, along with Copy A, for a recipient, process ONLY Copy A. Delete all additional copies, for that recipient, by placing a red line across each copy.

    Note:

    Before any additional copy is deleted, ensure it is an exact duplicate of the original.

  4. If Copy A, of the Form 1042-S, is received without a corresponding Form 1042-T, create a dummy Form 1042-T.

    Exception:

    If a Form 1042-S is received from a recipient, requesting a refund of taxes withheld, refer to lead. The Form 1042-S must be returned to the recipient with instructions to file a Form 1040NR with the Austin Campus.

    Note:

    Only one 1042-T will be prepared for all of the IRS Commissioners issued paper Forms 1042-S, Copy A. In addition, the withholding agents address on the IRS Commissioners 1042-S will vary from Form to Form and perhaps even the 1042-T because of the many IRS offices that contribute to the IRS Commissioners Form 1042. See IRM 3.17.79, Accounting Refund Transactions, for more information on Accounting refund practices for Chapter Three Withholding.

  5. If only Copy B, C, D, and/or E, is received without a corresponding Form 1042-T, do not process. Follow procedures for Classified Waste (CW).

  6. Form 1042-S indicates the amount of U.S. income tax,

    • which was withheld at source, and

    • which can be claimed by the recipient as a credit against tax liability on Form 990-PF, Form 990-T, Form 1040NR, Form 1041, Form 1120-F, Form 1120-FSC, Form 1040-NR Trust/Estate, Form 1042 or Form 8804.

  7. Any gross income from U.S. sources that is not effectively connected with the conduct of trade or business in the U.S. is taxed at 30% or a lower treaty rate.

  8. Income effectively connected with the conduct of trade or business in the U.S. (foreign corporations engaged in a trade or business in the U.S.) is taxed at either:

    1. Regular corporate rates, or

    2. Graduated individual rates.

  9. Form 1042-S must be filed even if income was paid but was exempt from withholding.

  10. The tax data extracted from Form 1042-S processing is exchanged with foreign countries with which the U.S. has a tax treaty or exchange of information agreement using Form OECD (Organization for Economic Cooperation and Development).

  11. For those Form 1042-S that are filed electronically, all money fields are reported in dollars only. However, for those Form 1042-S that are filed on paper, money fields can be reported in dollars only or dollars and cents.

  12. If you receive a prior year Form 1042-S you must edit Form 1042-S to conform with the current tax year line numbering sequence (See Exhibit 3.21.111-12). If unable to edit, then prepare a dummy 1042-S using the current year form.

3.21.111.6.1  (01-01-2014)
Form 1042-S Editing

  1. Edit Form 1042-S while they are still associated to the Form 1042-T. See Exhibit 3.21.111-4 , for Form 1042-S transcription lines.

3.21.111.6.1.1  (01-01-2014)
Tax Year

  1. Tax Year - identifies the tax period for which the withholding agent is submitting the Form 1042-S.

    1. This is a 4 position field that must be present.

    2. Only numeric characters are valid.

      If Then
      Prior year revision used to file current year form, Edit current tax year in YYYY format to the left of preprinted tax year. Circle the preprinted tax year to delete it.
      Determined from attached forms that Tax Period is other than current year, Remove from current year batch. Forward for batching as prior tax year.
      Tax year is a future year, Edit as current year unless removed from an early filed return.
      Tax Year missing, incomplete, illegible, or unable to determine, Edit as current year.

3.21.111.6.1.2  (01-01-2014)
Received Date

  1. Received Date - identifies the received date of the Form 1042-S.

    • This is an 8 position field that must be present.

    • Only numeric characters (0-9) are valid.

    • The date must be in MMDDYYYY format.

    • The date must be stamped/edited to the bottom right corner.

      Note:

      Do not edit over entries already present. If a multi pack, all documents require the received date.

      If Then
      Missing, incomplete, illegible, or unable to determine, Research document or attachments for the received date and edit accordingly.

3.21.111.6.1.3  (01-01-2014)
Cross Reference DLN

  1. Cross Reference Document Locator Number (DLN) - identifies the DLN of the Form 1042-T transmitting record associated with this Form 1042-S. This field is located in the bottom left corner of paper Form 1042-S. On electronically filed records the cross-reference DLN is computer generated.

    1. This is a 13 position field that must be present.

    2. If missing from paper filed Form 1042-S, then research other Form 1042-S within multi-pack to locate Withholding Agent DLN and edit accordingly.

      Note:

      If not found, continue processing.

3.21.111.6.1.4  (01-01-2014)
Return Type Indicator

  1. Return Type Indicator - identifies the type of Form 1042-S being submitted, See Figure 3.21.111-3.

    • This is a 1 position field.

    • The valid characters are "1," "2," "3," or blank.

    • Edit the appropriate code above the Pro-rata Basis Reporting checkbox as follows:

      If Then
      No box is checked, Leave blank.
      Amended box is checked, Edit "1."
      Pro-rata box is checked, Edit "2."
      Amended and pro-rata boxes are checked, Edit "3."

    Figure 3.21.111-3

    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Return Type Indicator Editing

3.21.111.6.1.5  (01-01-2014)
Income Code, Box 1

  1. Income Code, Box 1 - identifies the type of income paid to the recipient, see Figure 3.21.111–4, Income Code, Box 1.

    • This is a 2 position field that must be present.

    • Only numeric characters are valid.

      Note:

      If only one character is present, precede it with a zero.

    • If the Income Code is missing, research the document to determine if the income type is present elsewhere on the document. If an explanation of income type is provided, determine the correct code from the table below:

      Income Code Definition
      01 Interest paid by a U.S. obligors - general
      02 Interest on real property mortgages
      03 Interest paid to controlling foreign corporations
      04 Interest paid by foreign corporations
      05 Interest on tax-free covenant bonds
      06 Dividends paid by U.S. corporations-general
      07 Dividends subject to direct dividends rate
      08 Dividends paid by foreign corporations
      09 Capital gains
      10 Industrial royalties
      11 Motion picture or television copyright royalties
      12 Other royalties (for example, copyright, recording, publishing)
      13 Real property and natural resources royalties
      14 Pensions, annuities, alimony, and/or insurance premiums
      15 Scholarship or fellowship grants
      16 Compensation for independent personal services
      17 Compensation for dependent personal services
      18 Compensation for teaching
      19 Compensation during studying and training
         
      24 Real estate investment trust (REIT) distributions of capital gains
      25 Trust distributions subject to IRC §1445
      26 Unsevered growing crops and timber distributions by a trust subject to IRC §1445
      27 Publicly traded partnership distributions subject to IRC §1446
      28 Gambling winnings
      29 Deposit interest
      30 Original issue discount (OID)
      31 Short-term OID
      32 Notional principal contracting income
      33 Substitute payment-interest
      34 Substitute payment - dividends
      35 Substitute payment - other
      36 Capital gains distributions
      37 Return of capital
      38 Eligible deferred compensation items subject to IRC section 877A(d)(1)
      39 Distributions from a nongrantor trust subject to IRC section 877A(f)(1)
      40 Other U.S. income source dividend equivalent
      41 Guarantee of indebtedness
      42 (Edit Income 20 to 42 for Tax Year 2012 and subsequent.) Earnings as an artist or athlete - no central withholding agreement
      43 Earnings as an artist or athlete - central withholding agreement
      50 Other income

      Note:

      If you can't determine the type of income, enter Income Code 50.

  2. Correspond if the withholding agent is reporting more than one income on Form 1042-S. . If contact is not possible or there is no reply, the original form should be copied and the original should be perfected to reflect only one income code. Leave the original in the batch. The copy or copies will need to be processed, using the following steps:

    Note:

    Follow no-reply procedures until further notice.)

    • Perfect the income code information to reflect the code not edited on the original. Perfect the rest of the copy and add it to the back of the pack.

    • Edit the "Number of paper Forms 1042-S attached" on the Form 1042-T to reflect the additional copies added to the batch.

    • Process the Form 1042-T and the copies of Form 1042-S.

    Figure 3.21.111-4
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Income Code Editing

3.21.111.6.1.6  (01-01-2014)
Gross Income, Box 2

  1. Gross Income - Box 2 - identifies the total gross income paid to the recipient.

    • This is a 12 position field.

    • Only numeric characters (0-9) are valid.

    • If the gross income is less than $1.00, then edit entry to ($1).

    • If the gross income is negative, take no action and continue processing.

    • If the gross income is omitted, take no action and continue processing.

3.21.111.6.1.7  (01-01-2014)
Withholding Allowances, Box 3

  1. Withholding Allowances, Box 3 - identifies the amount a withholding agent is paying to a recipient that is not taxable per treaty benefits.

    • This is a 12 position field that may or may not be present.

    • A Withholding Allowance can only be allowed with Income Code "15," "16," "17," "18," "19" or 42. If any other Income Code is present, "X" entry in Box 3 (Withholding Allowance).

3.21.111.6.1.8  (01-01-2014)
Net Income, Box 4

  1. Net Income, Box 4 - identifies the result of Gross Income, Box 2, less Withholding Allowances, Box 3.

  2. This is a 12 position field that should only be used with Income Code 15, 16, 17, 18, 19 or 42.

    IF AND THEN
    Box 4, Net Income equals, Box 2, Gross Income,   Take no action.
    Box 4, Net Income is blank, zero (0), dash, or none and Box 1, Income Code is 15, 16, 17, 18, 19 or 42, Box 3, Withholding Allowances has an amount present, Edit the difference between Box 2, Gross Income and Box 3, Withholding Allowances, in Box 4, Net Income.
    Box 4, Net Income is blank, zero (0), dash, or none and Box 1, Income Code is 15, 16, 17, 18, 19 or 42, Box 3, Withholding Allowances is blank, Edit the amount in Box 2, Gross Income in Box 4, Net Income.
    Box 4, Net Income has an amount present and differs from Box 2, Gross Income, Income Code is not 15, 16, 17, 18, 19 or 42, Edit an "X" to the left of the entry in Box 4, Net Income.
    Box 4, Net Income is present and differs from Box 2, Gross Income, Box 3, Withholding Allowances is blank, and Income Code is 15, 16, 17, 18, 19 or 42, Subtract Box 4, Net Income from Box 2, Gross Income, and edit result in Box 3, Withholding Allowances. See Figure 3.21.111–5.
    Box 4, Net Income is present and differs from Box 2, Gross Income, Box 3, Withholding Allowances is greater than Box 2 or Box 4, and Income Code is 15, 16, 17, 18, 19 or 42, Take no action.

    Figure 3.21.111-5
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Computing Withholding Allowance

3.21.111.6.1.9  (01-01-2014)
Tax Rate, Box 5

  1. Tax Rate, Box 5 - identifies the tax rate percentage applicable for the income and recipient type reported.

    • This is a 4 position field .

    • Generally, the tax rate for non-treaty countries is 30.00 (30%). Tax rates for treaty countries vary. Exhibits 3.21.111 - 10 and 3.21.111 - 11 list valid treaty countries and the reduced rates they are entitled to claim.

    • The tax rate must consist of a four digit number (#### format). Only numeric values are valid.

    • If the tax rate is not in the #### (four digit number) format, Code and Edit must edit the 4 position tax rate, using the Tax Rate Table below. See Figure 3.21.111–6, for editing the tax rate.

      Caution:

      DO NOT edit two zeroes (00) to the front of the whole number.

  2. The valid tax rate percentages for treaty and non treaty countries are:

    Tax Rate Table
    00.00 07.00 14.00 27.50
    04.00 08.00 15.00 28.00
    04.90 10.00 17.50 30.00
    04.95 12.00 20.00  
    05.00 12.50 25.00 35.00

    Note:

    Code and Edit should not edit the decimal point, when editing the Tax Rate. Data does not transcribe the decimal point and it will be automatically populated for both paper and electronic records.

     
  3. When the following conditions exist take the necessary action:

    If Then
    Percent sign ("%" ) is entered or the word "percent" is present Circle out "%" sign or the word "percent" (i.e. 15%, circle "%" and edit 1500).
    The tax rate is spelled out Convert to a numeric value. (i.e., Fifteen Percent, "X" entry and edit 1500).
    Only one digit is present, Refer to tax rate table and edit accordingly (i.e., 5% or 5, edit 0500.)
    Only two digits are present, Refer to tax rate table and edit accordingly (i.e., 14% or 14, edit 1400).
    Decimal point is present, No editing is necessary.
    If blank, Continue processing.
    If 0 or 00 is present, Edit 0000.

    Caution:

    A design flaw has limited the space available in the 2009 version of the Form 1042-S, Box 5 for Tax Rate. This may cause the Tax Rate figure/amount to overflow into the Exemption Code field. Code and Edit should perfect any illegible entries, per IRM 3.21.111.4 (2c).

    Figure 3.21.111-6
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Tax Rate Editing

3.21.111.6.1.10  (01-01-2014)
Exemption Code, Box 6

  1. Exemption Code, Box 6 - identifies when an exemption is being applied to the income.

  2. This is a 2 position field that may or may not be present.

  3. The valid Exemption Codes and definitions are as follows:

    Exemption Code Authority for Exemption
    Blank Tax rate is greater than (>) 30%
    00 Exemption code not applicable (1-30%)
    01 Effectively connected with a U. S. trade or business
    02 Exempt under an Internal Revenue Code section (income other than portfolio interest)
    03 Income is not from U. S. sources
    04 Exempt under tax treaty
    05 Portfolio interest exempt under an Internal Revenue Code section
    06 Qualified intermediary that assumes primary withholding responsibility
    07 Withholding foreign partnership or withholding foreign trust
    08 U. S. branch treated as a U.S. person
    09 Qualified intermediary represents income is exempt
    10 Qualified securities lender that assumes primary withholding responsibility
    99 NQI Exemption Code (Presumption Rule - 2nd Level Identifier)

  4. A valid Exemption Code," 01-10," should be present if Box 5, Tax Rate, equals zero (0).

  5. If Box 6, Exemption Code, is blank and any of the following conditions exist, take the following actions to edit Exemption Code:

    If Then
    Claim of Provision under Section of the Internal Revenue Code (IRC) is claimed or a copy of the code is attached, Edit "02."
    A statement is attached indicating the income is from non U.S. sources, Edit "03."
    A statement is attached defining a specific treaty article, Edit "04."
    A statement is attached indicating that income reported is related to portfolio interest, Edit "05."

  6. If unable to determine, continue processing.

3.21.111.6.1.11  (01-01-2014)
U.S. Federal Tax Withheld, Box 7

  1. U.S. Federal Tax Withheld, Box 7 - identifies the amount of U.S. tax withheld.

  2. This is a 12 position field that may or may not be present.

  3. Only numeric characters (0-9) are valid.

3.21.111.6.1.12  (01-01-2014)
Withholding by Other Agents, Box 8

  1. Withholding by other agents - identifies the amount of income that has already been subject to withholding by another withholding agent(s). The amount withheld is reported in box 8.

  2. This is a 12 position field that may or may not be present.

  3. Only numeric characters (0-9) are valid.

3.21.111.6.1.13  (01-01-2014)
Total Withholding Credit, Box 9

  1. Total withholding credit - identifies the total amount of tax withheld by withholding agents.

  2. This is a 12 position field.

  3. Only numeric characters (0-9) are valid.

  4. If blank, zero (0), dash, or none, and an entry appears in box 7 or 8, compute (add lines 7 and 8) and enter the total in box 9. If only a single entry appears in either line 7 or 8 then double arrow the amount to line 9. Cross out zero or dash if present.

3.21.111.6.1.14  (01-01-2014)
Amount Repaid to Recipient, Box 10

  1. Amount Repaid to Recipient, Box 10 - identifies an amount the withholding agent repaid to the recipient that was over-withheld. The withholding agent will then reimburse itself 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 the withholding.

  2. This is a 12 position field that may or may not be present.

  3. Only numeric characters (0-9) are valid.

3.21.111.6.1.15  (01-01-2014)
Withholding Agent's EIN, Box 11

  1. Withholding Agent's EIN, Box 11 - identifies the Employer Identification Number (EIN) of the Withholding Agent, Qualified Intermediary or Non-Qualified Intermediary. Qualified Intermediary's EINs will be in the range of 98-0234988 through 98-0334987.

  2. This is a 9 position field.

  3. Only numeric characters (0-9) are valid, however, all 0's or all 9's are invalid characters.

    If Then
    EIN is missing, incomplete or illegible, or SSN or ITIN is present, Circle the incorrect entry. Research associated Form 1042-S to find Withholding Agent EIN.
    • If found, edit the valid EIN to the left of the incorrect taxpayer entry.

    • If not found, continue processing.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.21.111.6.1.16  (01-01-2014)
Withholding Agent's Name , Box 12a

  1. Withholding Agent's Name, Box 12a - Identifies the Withholding Agent's Name as established when filing for the EIN or QI EIN. This field consists of three line entries.

    1. This field consists of 40 characters for each line. (Name Line 1, Name Line 2 and Name Line 3).

  2. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

      Note:

      The percent (%) sign is used to identify in care of and is valid in the first position only.

3.21.111.6.1.17  (01-01-2014)
Address, Boxes 12b & 12c (Withholding Agent's)

  1. The withholding agent's street address is a required field. There are two 40 position boxes for which entries may be present.

  2. Valid characters for address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

  3. Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for additional information on Zip Code ranges.

  4. Invalid characters that are not on the list should be edited out.

  5. If missing or illegible, perfect from attachments.

3.21.111.6.1.18  (01-01-2014)
City or Town, Province or State, Country, ZIP or Foreign Postal Code, Box 12d (Withholding Agent's)

  1. This box identifies the withholding agent's address of record. This field consists of entries which identify city or town, state, province (if applicable), country (if applicable) and zip or foreign postal code. The withholding agent must have a complete address.

    • The table below lists the field lengths:

    Field Length
    Street Line 1 - Required field that identifies the address of record for the withholding agent. The address must consist of a number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Exhibit 3.21.111- 5, for Street Abbreviations.

    Note:

    If both a street address and the PO Box are present, circle out PO Box.

    40
    Street Line 2 - Used to provide supplemental information pertaining to the withholding agent's street address. 40
    City - Required field which identifies the city or town (or other locality name) of the withholding agent. Enter APO/FPO/DPO in this field, if applicable. 40
    State (Code) - Required field if withholding agent has a domestic address. If the state name is spelled out, do not edit the two digit state code. ISRP will enter the two digit state code. See Exhibit 3.21.111- 6, for State Code abbreviations. See Figure 3.21.111-7, for State Code editing.

    Note:

    If not a U.S. state, territory, or APO/FPO/DPO address, then no State Code will be present.

    2
    Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two character code from the Province Code table above the name of the Province. See Exhibit 3.21.111- 9, for Canadian Province Codes. 2
    Country (Code) - Required field if withholding agent has a foreign address. Edit the two character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Exhibit 3.21.111-7, for Country Code Table for editing entity/address. See Figure 3.21.111–9 for country Code editing procedures.

    Note:

    Possessions, APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient, See IRM 3.21.111.6.1.21(10).

    2
    Foreign Postal/Zip Code - Identifies the foreign postal or domestic zip code for the withholding agent. 5-9

  2. Arrow data to the correct position in the series.

  3. If any of these fields are missing, then perfect from attached documents.

  4. If foreign address and country name is Abu Dhabi, Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City, then edit the country name in the city field position and country code in the country name position.

  5. A Foreign Postal Code must be present for all Australian addresses. If the Foreign Postal Code field is blank, then edit the field accordingly. See table below:

    Note:

    If Postal Code is blank and the state/territory cannot be determined, enter 0000 for the postal code.

    Australian State/Territory State Abbreviation Postal Code
    New South Wales (NSW) and Australian Central Territory (ACT) NSW and ACT 2000 - 2999
    Victoria VIC 3000 - 3999
    Queensland QLD 4000 - 4999
    South Australia SA 5000 - 5799
    Western Australia WA 6000 - 6799
    Tasmania TAS 7000 - 7499
    Northern Territory NT 0800 - 0899

  6. European postal systems frequently do not spell out the name of the country, instead, they will use a prefix to the postal code. Listed below are the prefixes frequently used, along with the number of digits allowed for those countries:

    Country Name Prefix Length
    Austria A 4
    Belgium B 4
    Denmark DK 4
    Finland SK 5
    France F 5
    Germany D 4 or 5
    Hungary H 4
    Italy I 5
    Liechtenstein FL 4
    Norway N 4
    Sweden S 5
    Switzerland CH 4

    Figure 3.21.111-7
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    State Code Editing

3.21.111.6.1.19  (01-01-2014)
Recipient Name - Box 13a

  1. Recipient Name - Box 13a - identifies the Recipient's Name. This field is required and consists of up to three line entries.

  2. This field consists of 40 characters for each line (Name Line 1, Name Line 2 and Name Line 3).

  3. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

      Note:

      The percent (%) sign is used to identify in care of and is valid in the first position only.

3.21.111.6.1.20  (01-01-2014)
Recipient Code, Box 13b

  1. Recipient Code, Box 13b - identifies the type of recipient for the income being reported by the withholding agent.

  2. This is a 2 position field.

  3. Only numeric characters are valid.

  4. If only one digit is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ). See Figure 3.21.111-8, for Recipient Code editing.

  5. If the Recipient Code is missing, limited research may be initiated to determine if the recipient type is present elsewhere on the document:

    1. Research the recipient name line, if able to identify recipient type, determine the correct code from the table below.

    2. If an explanation of recipient type is provided, determine the correct code from the table below.

    3. If Recipient Code cannot be determined, continue processing.

      Note:

      If Income Code is 42 or 43, use Recipient Code 09.

  6. The valid Recipient Codes are:

    Recipient Code Definition
    01 Individual
    02 Corporation
    03 Partnership other than withholding foreign partnership
    04 Withholding foreign partnership or withholding foreign trust
    05 Trust
    06 Government or international organization
    07 Tax-exempt organization (IRC Section 501(a))
    08 Private foundation
    09 Artist or athlete (Use for Income Codes 42 and 43
    10 Estate
    11 U. S. branch treated as U.S. person
    12 Qualified intermediary
    13 Private arrangement intermediary-withholding rate pool - general
    14 Private arrangement intermediary-withholding rate pool-exempt organizations
    15 Qualified intermediary withholding rate pool - general
    16 Qualified intermediary withholding rate pool-exempt organizations
    17 Authorized foreign agent
    18 Public Pension Plan
    20 Unknown Recipient

    Note:

    If Recipient Code is Unknown Recipient, then Recipient Name Line 1 must equal "Unknown,"

    21 Qualified securities lender—qualified intermediary
    22 Qualified securities lender—other

    Figure 3.21.111-8
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Editing Recipient Code

3.21.111.6.1.21  (01-01-2014)
Recipient Address, Boxes 13c, d, and e

  1. Recipient Address, Boxes 13c, d, and e - identifies the recipients address of record.

  2. This field consists of entries which identify street, city or town, state, province (if applicable), country (if applicable) and zip or foreign postal code. Recipient's must have a complete address except when identified as an Unknown Recipient (Recipient Code 20) or a Qualified Intermediary Withholding Rate Pool (Recipient Code 13, 14, 15 or 16).

  3. Valid characters for address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

  4. Invalid characters that are not on the list should be edited out.

  5. The table below lists the field lengths:

    Field Length
    Street Line 1 - Required field that identifies the address of record for the Recipient. The address must consist of number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Exhibit 3.21.111- 5, for Street Abbreviations.

    Note:

    If both Street address and PO Box present, circle out PO Box.

    40
    Street Line 2 - Used to provide supplemental information pertaining to the Recipient's street address. 40
    City - Required field which identifies the city or town (or other locality name) of the Recipient. Enter APO/FPO/DPO in this field, if applicable. 40
    State (Code) - Required field if Recipient has a domestic address. If the state name is spelled out, do not edit the two digit state code. ISRP will enter the two digit state code. See Exhibit 3.21.111- 6, for State Code abbreviations.

    Note:

    If not a U.S. State, Territory or APO/FPO/DPO address, no state code will be present.

    2
    Province (Code) - Required field if the Recipient's address is in Canada. Only enter a Province Code when the country is Canada. Edit the two character code from the Province Code table above the name of the Province. See Exhibit 3.21.111- 9, for Canadian Province Codes. 2
    Country (Code) - Required field if Recipient has a foreign address. Edit the two character code from the Country Code table above the name of the Country. See Exhibit 3.21.111- 7, for Country Code Table for editing entity/address information. See Figure 3.21.111- 9, for Country Code editing procedures. If Box 13e is blank, and the Country Code cannot be determined, leave blank and continue processing.

    Note:

    Possessions, APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient, See IRM 3.21.111.6.1.21(10).

    2
    Foreign Postal/Zip Code - Identifies the foreign or domestic zip code for the Recipient. 5-9

  6. Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for additional information on Zip Code ranges.

  7. Arrow data to the correct position in the series.

  8. If any of these fields are missing, then perfect from attached documents.

  9. If foreign address and country name is Abu Dhabi, Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City , then edit the country name in the city field position and country code in the country name position.

  10. A Foreign Postal Code must be present for all Australian addresses. If the Foreign Postal Code field is blank then edit the field accordingly. See table below:

    Note:

    If Postal Code is blank and the state/territory cannot be determined, enter 0000 for the postal code.

    Australian State/Territory State Abbreviation Postal Code
    New South Wales (NSW) and Australian Central Territory (ACT) NSW and ACT 2000 - 2999
    Victoria VIC 3000 - 3999
    Queensland QLD 4000 - 4999
    South Australia SA 5000 - 5799
    Western Australia WA 6000 - 6799
    Tasmania TAS 7000 - 7499
    Northern Territory NT 0800 - 0899

  11. European postal systems frequently do not spell out the name of the country, instead, they will use a prefix to the postal code. Listed below are the prefixes frequently used along with the number of digits allowed for those countries:

    Country Name Prefix Length
    Austria A 4
    Belgium B 4
    Denmark DK 4
    Finland SK 5
    France F 5
    Germany D 4 or 5
    Hungary H 4
    Italy I 5
    Liechtenstein FL 4
    Norway N 4
    Sweden S 5
    Switzerland CH 4

  12. If a domestic address has been entered for the recipient in box 13e, and the Country Code is blank, enter "OC" in the blank Country Code.

    Figure 3.21.111-9
    This image is too large to be displayed in the current screen. Please click the link to view the image.

    Country Code Editing

3.21.111.6.1.22  (01-01-2014)
Recipient's U.S. Taxpayer Identification Number (TIN), Box 14

  1. Recipient's U.S. Taxpayer Identification Number (TIN), Box 14 - identifies the Recipient's Taxpayer Identification Number.

  2. This is a 9 position field that may or may not be present.

  3. Only numeric characters are valid.

  4. The Recipient's TIN can be a Social Security Number (SSN) or an IRS Individual Taxpayer Identification Number (ITIN).

  5. The Recipient's TIN cannot be the same as the Withholding Agent's EIN, Box 11. If the same number is present in box 14, delete the entry.

  6. If the entry is more or less than nine digits, delete the entry.

3.21.111.6.1.23  (01-01-2014)
Recipient's U.S. TIN Indicator, Box 14 Checkbox

  1. Recipient's U.S. TIN Indicator, Box 14 Checkbox - identifies the type of U.S. TIN (SSN or ITIN, EIN, or QI EIN).

  2. No editing is required.

3.21.111.6.1.24  (01-01-2014)
Recipient's Foreign Tax Identifying Number, if any, Box 15

  1. Recipient's foreign tax identifying number, Box 15 - represents the Recipient's identifying number, used in the country of residence, for tax purposes.

  2. This is a 22 position field that may be present.

  3. Alpha and/or numeric characters are valid.

3.21.111.6.1.25  (01-01-2014)
Recipient's Country Code, Box 16

  1. Recipient's Country Code, Box 16 - identifies the Recipient's country code of residence for which the tax treaty benefits are based. Use Exhibit 3.21.111–7, Country Code chart for editing Form 1042-S, Box 16.

  2. This is a 2 position field.

  3. Only alpha characters (A-Z) are valid.

    If Then
    Box 16 is Blank, Edit the 2 digit code using the information from Box 13e for country name. See Exhibit 3.21.111-7, for Country Code Table for Box 16. If Box 13e has a domestic address, enter “OC” in the blank Box 16.
    no entry in Box 13e, Leave blank and continue processing.

  4. If the withholding agent entered Country Code "OC" (Other Country), for the recipient's country code, then take the following steps:

    If Then
    The Tax Rate (Box 5) is less than 30% and Recipient's country of residence (Box 13e) is present, Use Exhibit 3.21.111–7, Country Code Table, to determine a valid country code. If a valid code is found, delete "OC" and enter the valid code to the left of the entry.
    The Tax Rate is less than 30% and no country of residence is present, leave "OC" in the Country Code field.
    The Tax Rate is 30%, leave "OC" in the Country Code field.

3.21.111.6.1.26  (01-01-2014)
Non-Qualified Intermediary's (NQI's)/Flow-Through Entity's Name and Address, Boxes 17-20

  1. Non-Qualified Intermediary's (NQI's)/Flow-Through Entity's Name, Boxes 17-20- identifies the name, address and TIN of a Non-Qualified Intermediary or flow-through Entity.

  2. The entries for this field are optional and if present will consist of the following fields:

    • NQI/Flow-Through Entity's Name - 40 position field;

    • NQI/Flow-Through Entity's Country Code - 2 position field;

    • NQI/Flow-Through Entity's Address - (2) 40 position fields;

    • NQI/Flow-Through Entity's TIN - 9 position numeric field;

      Caution:

      If any of the above fields are present, follow procedures in the recipient name and address areas for editing the above fields.

  3. If box 18, Country code, is blank and NQI country name is present in box 19c, edit the appropriate country code to box 18. (See Exhibit 3.21.111–7, Country Code chart for editing entity/address information).

3.21.111.6.1.27  (01-01-2014)
Payer Entity Information, Boxes 21, 23-25

  1. Payer Entity Information, Boxes 21, 23, 24, and 25 - identifies Payer information if present.

  2. The entries for this field are optional and if present will consist of the following fields:

    • Payer's Name - 40 position field;

    • Payer's TIN - 9 position numeric field;

    • State Income Tax Withheld - 12 position numeric field;

    • Payer's State Tax Number - 10 position numeric field;

    • Name of state - this is a 2 position alpha field.

      Note:

      If filer has entered state name in box 25, use Exhibit 3.21.111– 6, State abbreviations and ZIP Code Ranges including APO/FPO/DPO Zones, to edit the appropriate 2 digit state code.

3.21.111.6.1.28  (01-01-2014)
Recipient's Account Number, Box 22

  1. Recipient's Account Number, Box 22 - is assigned by the withholding agent and is used to identify the recipient's investment account (20 characters maximum).

  2. This is a 20 position field that may or may not be present.

  3. Any character present is valid.

  4. No editing is required.

Exhibit 3.21.111-1 
Form 1042-T, Annual Summary and Transmittal of Forms 1042-S

Form 1042-T Exhibit
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.21.111-2 
Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding

Form 1042-S Exhibit
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.21.111-3 
Form 1042-T Transcription Lines

Form 1042-T with transcription lines
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.21.111-4 
Form 1042-S Transcription Lines

Form 1042-S with transcription lines
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.21.111-5 
Street Address Abbreviations

Street Abbreviations Exhibit
Word Abbreviation   Word Abbreviation
Alley ALLY   Lake LK
Annex ANX   Lakes LKS
Arcade ARC   Landing LNDG
Avenue AVE   Lane LN
Bayou BYU   Light LGT
Beach BCH   Locks LCKS
Bend BND   Lodge LDG
Bluff BLF   Loop Loop
Bottom BTM   Mall MALL
Boulevard BLVD   Manor MNR
Branch BR   Meadows MDWS
Bridge BRG   Mill ML
Brook BRK   Mills MLS
Burg BG   Mission MSN
Bypass BYP   Mountain MTN
Camp CP   Neck NCK
Canyon CYN   Orchard ORCH
Cape CPE   Oval OVAL
Causeway CSWY   Park PARK
Center CTR   Parkway PKY
Circle CIR   Pass PASS
Cliffs CLFS   Path PATH
Club CLB   Pike PIKE
Corner COR   Pines PNS
Corners CORS   Place PL
Course CRSE   Plain PLN
Court CT   Plains PLNS
Courts CTS   Plaza PLZ
Cove CV   Point PT
Creek CRK   Port PRT
Crescent CRES   Prairie PR
Crossing XING   Radical RADL
Dale DL   Ranch RNCH
Dam DM   Rapids RPDS
Divide DV   Rest RST
Drive DR   Ridge RDG
Estate EST   River RIV
Expressway EXPY   Road RD
Extension EXT   Row ROW
Fall FL   Run RUN
Falls FLS   Shoal SHL
Ferry FRY   Shoals SHLS
Field FLD   Shore SHR
Flats FLT   Shores SHRS
Ford FRD   Spring SP
Forrest FRST   Springs SPS
Forge FRG   Spur SPUR
Fork FRK   Square SQ
Forks FRKS   Station STA
Fort FT   Stravenue STRA
Freeway FWY   Stream STRM
Gardens GDNS   Street ST
Gateway GTWY   Summit SMT
Glen GLN   Terrace TER
Green GRN   Trace TRCE
Grove GRV   Trail TRL
Harbor HBR   Trailer TRLR
Haven HVN   Tunnel TUNL
Heights HTS   Turnpike TPKE
Highway HWY   Union UN
Hill HL   Valley VLY
Hills HLS   Viaduct VIA
Hollow HOLW   View VW
Inlet INLT   Village VLG
Island IS   Villa VL
Islands ISS   Vista VIS
Isle ISLE   Walk WALK
Junction JCT   Way WAY
Key KY   Wells WLS
Knolls KNLS      

Exhibit 3.21.111-6 
State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones

State abbreviations and ZIP Code Exhibit
State Name State Abbreviation Zip Code Range
Alaska AK 995-999
Alabama AL 350-369
Arizona AZ 850-865
Arkansas AR 716-729
California CA 900-908, 910-968
Colorado CO 800-816
Connecticut CT 060-069
Delaware DE 197-199
District of Columbia DC 200-205
Florida FL 320-340, 342, 344, 346, 347, 349
Georgia GA 300-319, 399
Hawaii HI 967-968
Idaho ID 832-838
Illinois IL 600-629
Indiana IN 460-479
Iowa IA 500-528
Kansas KS 660-679
Kentucky KY 400-427
Louisiana LA 700-714
Maine ME 039-049
Maryland MD 206-219
Massachusetts MA 010-027, 055
Michigan MI 480-499
Minnesota MN 550-567
Mississippi MS 386-397
Missouri MO 630, 631, 633–641, 644–658
Montana MT 590-599
Nebraska NE 680-693
Nevada NV 889-898
New Hampshire NH 030-038
New Jersey NJ 070-089
New Mexico NM 870-884
New York NY 004, 005, 090-098, 100-149
North Carolina NC 270-289
North Dakota ND 580-588
Ohio OH 430-459
Oklahoma OK 730-732, 734, 749
Oregon OR 970-979
Pennsylvania PA 150-196
Rhode Island RI 028-029
South Carolina SC 290-299
South Dakota SD 570-577
Tennessee TN 370-385
Texas TX 733, 750-799
Utah UT 840-847
Vermont VT 050-054, 056-059
Virginia VA 201, 220-246
Washington WA 980-994
West Virginia WV 247-258
Wisconsin WI 530-549
Wyoming WY 820-831
APO/FPO/DPO ZONE
State Abbreviation Postal Code Range
AA 340
AE 090–098
AP 962–966

Exhibit 3.21.111-7 
Country Code Chart for Tax Purposes (Form 1042-S, Box 16)

Country Code Chart (Form 1042-S, Box 16)
Foreign Country / Possession Country Code
Afghanistan AF
Akrotiri AX
Albania AL
Algeria AG
American Samoa AQ
Andorra AN
Angola AO
Anguilla AV
Antarctica AY
Antigua AC
Antigua & Barbuda AC
Argentina AR
Armenia AM
Aruba AA
Ascension SH
Ashmore Island AT
Ashmore & Cartier Islands AT
Australia AS
Austria AU
Azerbaijan AJ
Bahamas BF
Bahrain BA
Baker Island FQ
Bangladesh BG
Barbados BB
Barbuda AC
Belarus BO
Belgium BE
Belize BH
Benin BN
Bermuda BD
Bhutan BT
Bolivia BL
Bosnia-Herzegovina BK
Botswana BC
Bouvet Island BV
Brazil BR
British Indian Ocean Territory IO
British Virgin Islands VI
Brunei BX
Bulgaria BU
Burkina Faso UV
Burma BM
Burundi BY
Caicos Islands, Turks and TK
Cambodia CB
Cameroon CM
Canada CA
Cape Verde CV
Cayman Islands CJ
Central African Republic CT
Chad CD
Chile CI
China CH
Christmas Island KT
Clipperton Island IP
Cocos (Keeling) Islands CK
Columbia CO
Comoros CN
Congo, Republic of (Brazzaville) CF
Congo, Democratic Republic of (Kinshasa) CG
Cook Islands CW
Coral Sea Islands Territory CR
Costa Rica CS
Cote - D'Ivoire (Ivory Coast) IV
Croatia HR
Cuba CU
Cyprus CY
Czech Republic EZ
Dem. People's Rep. of Korea (North) KN
Dem. Rep. of Congo (Kinshasa) CG
Denmark DA
Dhekelia Sovereign Base Area DX
Djibouti DJ
Dominica DO
Dominican Republic DR
Dubai / Abu Dhabi (United Arab Emirates) AE
Ecuador EC
Egypt EG
El Salvador ES
Equatorial Guinea EK
Eritrea ER
Estonia EN
Ethiopia ET
Falkland Islands (Islas Malvinas) FK
Faroe Islands FO
Fiji FJ
Finland FI
France FR
French Guiana FG
French Polynesia FP
French Southern & Antarctic Lands FS
Gabon GB
Gambia GA
Georgia GG
Germany GM
Ghana GH
Gibraltar GI
Great Britain (United Kingdom) UK
Greece GR
Greenland GL
Grenada GJ
Guadeloupe GP
Guam GQ
Guatemala GT
Guernsey GK
Guinea GV
Guinea-Bissau PU
Guyana GY
Haiti HA
Heard Island & McDonald Islands HM
Holy See VT
Honduras HO
Hong Kong HK
Howland Island HQ
Hungary HU
Iceland IC
India IN
Indonesia ID
Iran IR
Iraq IZ
Ireland EI
Isle of Man IM
Israel IS
Italy IT
Jamaica JM
Jan Mayen JN
Japan JA
Jarvis Island DQ
Jersey JE
Johnston Atoll JQ
Jordan JO
Kazakhstan KZ
Kenya KE
Kingman Reef KQ
Kiribati KR
Korea (North) KN
Korea (South) KS
Kosovo KV
Kuwait KU
Kyrgyzstan KG
Laos LA
Latvia LG
Lebanon LE
Lesotho LT
Liberia LI
Libya LY
Liechtenstein LS
Lithuania LH
Luxembourg LU
Macau MC
Macedonia MK
Madagascar (Malagasy Republic) MA
Malawi MI
Malaysia MY
Maldives MV
Mali ML
Malta MT
Marshall Islands RM
Martinique MB
Mauritania MR
Mauritus MP
Mayotte MF
McDonald Island HM
Mexico MX
Micronesia, Federated States of FM
Midway Islands MQ
Moldova MD
Monaco MN
Mongolia MG
Montenegro MJ
Montserrat MH
Morocco MO
Mozambique MZ
Namibia WA
Nauru NR
Navassa Island BQ
Nepal NP
Netherlands NL
Netherlands Antilles NT
New Caledonia NC
New Zealand NZ
Nicaragua NU
Niger NG
Nigeria NI
Niue NE
Norfolk Island NF
North Korea KN
Northern Ireland UK
Northern Mariana Islands CQ
Norway NO
Oman MU
Pakistan PK
Palau PS
Palmyra Atoll LQ
Panama PM
Papua New Guinea PP
Paracel Islands PF
Paraguay PA
Peru PE
Philippines RP
Pitcairn Islands PC
Poland PL
Portugal PO
Puerto Rico RQ
Qatar QA
Republic of Korea (South) KS
Reunion RE
Romania RO
Russia RS
Rwanda RW
Samoa WS
San Marino SM
Sao Tome and Principe TP
Saudi Arabia SA
Senegal SG
Serbia RB
Seychelles SE
Sierra Leone SL
Singapore SN
Slovak Republic LO
Slovakia LO
Slovenia SI
Solomon Islands BP
Somalia SO
South Africa SF
South Georgia Island & South Sandwich Islands SX
South Korea KS
South Sandwich Island SX
Spain SP
Spratly Islands PG
Sri Lanka CE
St. Barthelemy TB
St. Helena SH
St. Kitts & Nevis (St. Christopher) SC
St. Lucia ST
St. Martin RN
St. Pierre SB
St. Pierre & Miquelon SB
St. Vincent & Grenadines VC
Sudan SU
Suriname NS
Svalbard SV
Swaziland WZ
Sweden SW
Switzerland SZ
Syria SY
Taiwan TW
Tajikistan TI
Tanzania TZ
Thailand TH
Timor-Leste TT
Togo TO
Tokelau TL
Tonga TN
Tortola VI
Trinidad and Tobago TD
Tunisia TS
Turkey TU
Turkmenistan TX
Turks & Caicos Islands TK
Tuvalu TV
Uganda UG
Ukraine UP
United Arab Emirates AE
United Kingdom (England, Wales, Scotland, No. Ireland) UK
Uruguay UY
Uzbekistan UZ
Vanuatu NH
Vatican City VT
Venezuela VE
Vietnam VM
Virgin Islands, (British) VI
Virgin Islands, (U.S.) VQ
Wake Island WQ
Wales UK
Wallis and Futuna WF
Western Sahara WI
Western Samoa WS
Yemen YM
Zambia ZA
Zimbabwe ZI
Other country (not identified elsewhere) OC
Unknown country UC

Exhibit 3.21.111-8 
Foreign Address Format

Foreign address format Exhibit
This image is too large to be displayed in the current screen. Please click the link to view the image.
This image is too large to be displayed in the current screen. Please click the link to view the image.

Exhibit 3.21.111-9 
Canadian Province Codes

Canadian Province Code Exhibit
Code Province Name
AB Alberta
BC British Columbia
MB Manitoba
NB New Brunswick
NL Newfoundland and Labrador
NS Nova Scotia
NT Northwest Territories
NU Nunavut
ON Ontario
PE Prince Edward Island
QC Quebec
SK Saskatchewan
YT Yukon Territory

Note:

Electronically filed records and the CTW database will accept LB for Labrador, NF for Newfoundland, PQ for Quebec, and YK for Yukon Territory. It is not necessary to make corrections if these codes are entered by the filer.

Exhibit 3.21.111-10 
Valid Treaty Rate by Country - All Income Codes
(EXCEPTION: Income Code 50 (Other Income))

Treaty rate by country (Income Code other than 50) Exhibit
Country Code Country Name Valid Percentage Rate
AS Australia 0, 10, 15, 30
AT Ashmore & Cartier (Territory of Australia) 0, 10, 15, 30
CK Cocos (Keeling) Islands (Territory of Australia) 0, 10, 15, 30
CR Coral Sea Islands (Territory of Australia) 0, 10, 15, 30
KT Christmas Island (Territory of Australia) 0, 10, 15, 30
NF Norfolk Island (Territory of Australia) 0, 10, 15, 30
AU Austria 0, 5, 10, 15, 30
BB Barbados 0, 5, 12.5, 15, 30
BE Belgium 0, 5, 15, 30
CA Canada 0, 5, 10, 15, 30
CH Peoples Republic of China 0, 10, 30
CY Cyprus 0, 5, 10, 15, 30
DA Denmark 0, 5, 15, 30
EG Egypt 0, 5, 15, 30
EI Ireland 0, 5, 15, 30
EN Estonia 0, 5, 10, 15, 30
EZ Czech Republic 0, 5, 10, 15, 30
FI Finland 0, 5, 15, 30
FR France 0, 5, 15, 30
FG French Guiana (Territory of France) 0, 5, 15, 30
GP Guadeloupe (Territory of France) 0, 5, 15, 30
MB Martinique (Territory of France) 0, 5, 15, 30
RE Reunion (Territory of France) 0, 5, 15, 30
GM Germany 0, 5, 15, 30
GR Greece 0, 30
HU Hungary 0, 5, 15, 30
IC Iceland 0, 5, 15, 30
ID Indonesia 0, 10, 15, 30
IN India 0, 10, 15, 20, 25, 30
IS Israel 0, 10, 12.5, 15, 17.5, 25, 30
IT Italy 0, 5, 7, 8, 10, 15, 30
JA Japan 0, 10, 15, 30
JM Jamaica 0, 10, 12.5, 15, 30
KS Korea, Republic of (South) 0, 10, 12, 15, 30
KZ Kazakhstan 0, 5, 10, 15, 30
LO Slovakia (Slovak Republic) 0, 5, 10, 15, 30
LG Latvia 0, 5, 10, 15, 30
LH Lithuania 0, 5, 10, 15, 30
LU Luxembourg 0, 5, 15, 30
MX Mexico 0, 4.9, 5, 10, 15, 30
MO Morocco 0, 10, 15, 30
NL Netherlands 0, 5, 15, 30
NZ New Zealand 0, 10, 15, 30
NO Norway 0, 10, 15, 30
PK Pakistan 0, 15, 30
RP Philippines 0, 15, 20, 25, 30
PL Poland 0, 5, 10, 15, 30
PO Portugal 0, 5, 10, 15, 30
RO Romania 0, 10, 15, 30
RS Russia (Federation) 0, 5, 10, 30
SF South Africa 0, 5, 15, 30
SP Spain 0, 5, 8, 10, 15, 30
SW Sweden 0, 5, 15, 30
SZ Switzerland 0, 5, 15, 30
TH Thailand 0, 5, 8, 10, 15, 30
TD Trinidad & Tobago 0, 15, 30
TS Tunisia 0, 10, 14, 15, 20, 30
TU Turkey 0, 5, 10, 15, 20, 30
UK United Kingdom 0, 5, 15, 30
VE Venezuela 0, 4.95, 5, 10, 15, 30
AJ Azerbaijan (Commonwealth of Independent States) 0, 30
AM Armenia (Commonwealth of Independent States) 0, 30
BO Belarus (Commonwealth of Independent States) 0, 30
GG Georgia (Commonwealth of Independent States) 0, 30
KG Kyrgyzstan (Commonwealth of Independent States) 0, 30
MD Moldova (Commonwealth of Independent States) 0, 30
TI Tajikistan (Commonwealth of Independent States) 0, 30
TX Turkmenistan (Commonwealth of Independent States) 0, 30
UZ Uzbekistan (Commonwealth of Independent States) 0, 30
UP Ukraine 0, 5, 10, 15, 28, 30, 35
OC All Other Countries 0, 30
UC Unknown Country 0, 30

Exhibit 3.21.111-11 
Valid Treaty Rate by Country - Income Code 50 (Other Income) ONLY

Treaty rate by country (Income Code 50) Exhibit
Country Code Country Name Valid Percentage Rates
AS Australia 30
AT Ashmore & Cartier (Territory of Australia) 30
CK Cocos Islands (Territory of Australia) 30
CR Coral Sea Islands (Territory of Australia) 30
KT Christmas Island (Territory of Australia) 30
NF Norfolk Islands (Territory of Australia) 30
AU Austria 0
BB Barbados 30
BE Belgium 30
CA Canada 15, 30
CH Peoples Republic of China 30
CY Cyprus 30
DA Denmark 0
EG Egypt 30
EI Ireland 0
EN Estonia 30
EZ Czech Republic 0
FI Finland 0
FG French Guiana (Territory of France) 0
GP Guadeloupe (Territory of France) 0
MB Martinique (Territory of France) 0
RE Reunion (Territory of France) 0
GM Germany 0
GR Greece 30
HU Hungary 0
IC Iceland 30
ID Indonesia 30
IN India 30
IS Israel 30
IT Italy 0
JA Japan 30
JM Jamaica 30
KS Korea, Republic of (South) 30
KZ Kazakhstan 30
LO Slovakia (Slovak Republic) 0
LG Latvia 0
LH Lithuania 0
LU Luxembourg 30
MX Mexico 30
MO Morocco 30
NL Netherlands 0
NZ New Zealand 30
NO Norway 30
PK Pakistan 30
RP Philippines 30
PL Poland 30
PO Portugal 30
RO Romania 30
RS Russia (Federation) 0
SF South Africa 0
SP Spain 0
SW Sweden 0
SZ Switzerland 0
TH Thailand 30
TD Trinidad & Tobago 30
TS Tunisia 0
TU Turkey 0
UK United Kingdom 0
VE Venezuela 30
AJ Azerbaijan (Commonwealth of Independent States) 30
AM Armenia (Commonwealth of Independent States) 30
BO Belarus (Commonwealth of Independent States) 30
GG Georgia (Commonwealth of Independent States) 30
KG Kyrgyzstan (Commonwealth of Independent States) 30
MD Moldova (Commonwealth of Independent States) 30
TI Tajikistan (Commonwealth of Independent States) 30
TX Turkmenistan (Commonwealth of Independent States) 30
UZ Uzbekistan (Commonwealth of Independent States) 30
UP Ukraine 0
OC All Other Countries 30
UC Unknown Country 30

Exhibit 3.21.111-12 
Conversion of Prior Year Form to Current Year Format

Conversion Exhibit for Prior Year forms
This image is too large to be displayed in the current screen. Please click the link to view the image.

More Internal Revenue Manual