3.22.111  Chapter Three Withholding (CTW) Database

Manual Transmittal

November 14, 2013

Purpose

(1) This transmits revised IRM Section 3.22.111, International Error Resolution - Chapter Three Withholding (CTW) Database.

Scope

This updates IRM 3.22.111, providing procedures for correcting Form 1042-T and Form 1042-S, using the Chapter Three Withholding (CTW) database. This updated version addresses procedures utilized by Input Correction (ERS) for the Tier II CTW database.

Material Changes

(1) Made various editorial changes throughout.

(2) Updated dates and figures.

(3) IRM 3.22.111.6(3) - Added Notify the Headquarters Analyst if any Form 1042-T records are left on the database because they cannot be corrected. Scan and E-mail a copy of the Form 1042-T to the analyst.

(4) IRM 3.22.111.6(4) - Ensure that the Non-Correctable (NC) records are reworked before the Cycle 32 PCD and again before the Cycle 51 PCD. The goal for the CTW program is for all records to move successfully to the IRMF.

(5) IRM 3.22.111.6.1(1) - Deleted FTP information. Added - Errors to be worked by ERS Tax Examiners need to be printed off the CTW Application.

(6) IRM 3.22.111.10.4(2) - Added The 1042-T has an incorrect DLN either on the paper or on the database and if the documents are originals, and either the 1042-T or the corresponding 1042-S documents were input as amended, then ERS will follow reinput procedures for the 1042-S documents using Form 3893 to route to Data. The 1042-T documents should be coded by Code and Edit to match the designation of the 1042-S.

(7) IRM 3.22.111.10.4.5(1) - Deleted Income Code 20 and added 42 and 43.

(8) IRM 3.22.111.10.4.7 - Changed Income Codes from 15-20 to 15-19 and 42.

(9) IRM 3.22.111.10.4.7(1) - Added Income Code 42.

(10) IRM 3.22.111.10.4.9(1) - Deleted Tax Rate 31.

(11) IRM 3.22.111.10.4.10(1) - Changed Exemption Codes from 1-9 to 1-10.

Effect on Other Documents

IRM 3.22.111, dated October 17, 2012 (effective 01-01-2013), is superseded. This IRM incorporates the following Interim Procedural Updates (IPU): 13U1239

Audience

Wage and Investment - Ogden Submission Processing Campus (OSPC) - Submission Processing Tax Examiners

Effective Date

(01-01-2014)

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

3.22.111.1  (01-01-2014)
Background

  1. IRC Sections 1441 through IRC Section 1464, Chapter Three Withholding, states that 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 gross payment. A lower rate of withholding may apply under the code, or an income tax treaty, if certain requirements are met. Generally, a withholding agent is the person responsible for withholding on payments made to a foreign person. A withholding agent is a U.S. or foreign person that has control, receipt, custody, disposal, or payment of any item of income of a foreign person that is subject to withholding. A withholding agent may be an individual, corporation, partnership, trust, association, nominee (under section 1446 of the Code), or any other entity, including any foreign intermediary, foreign partnership, or U.S. branch of certain foreign banks and insurance companies.

  2. Revised regulations under Chapter 3 (IRC Section 1441 through IRC Section 1464) and Chapter 61 (IRC Section 6041 through IRC Section 6050N) of the Internal Revenue Code became effective January 1, 2001. These regulations required a much more rigorous application by withholding agents of the requirements contained in the statutes. These regulations, together with Revenue Procedure 2000-12, Qualified Intermediary (QI) Revenue procedures and Revenue Procedure 2004-59, Section 1441, Voluntary Compliance Procedures (VCP), represented the culmination of a major effort begun in 1992 to revamp the withholding and reporting on payments of U.S. source income paid 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.

  5. Withholding and information reporting are fundamental to the U.S. tax compliance system. Accurate processing of the Form 1042-T and Form 1042-S contributes to ensuring U.S. source income, paid to other than U.S. persons, has withholding tax deducted at the correct tax rate and is reported and paid to the IRS.

3.22.111.2  (01-01-2014)
Purpose and Scope

  1. The purpose of this IRM is to provide processing instructions to correct Chapter Three Withholding (CTW) Forms 1042-T and Forms 1042-S that have failed validity, consistency checks, or math error computations through the Chapter Three Withholding database.

  2. These instructions pertain to the Chapter Three Withholding (CTW) Database only. The Chapter Three Withholding Database is an on-line correction process in a real-time environment.

  3. The Chapter Three Withholding (CTW) Database will display both paper and electronically filed returns that have not passed validity, consistency checks, or math error computations. Input Correction will correct errors via the CTW database.

  4. Tax examiners using this IRM must be familiar with the editing procedures in IRM 3.21.111, Form 1042-T and Form 1042-S Chapter Three Withholding - Code and Edit. The CTW tax examiner is not expected to review or redo the work of the Code and Edit tax examiner. However, if an error or omission is made by the Code and Edit tax examiner or the Data Transcriber, working the CTW paper return, edit the correct information on the return and you must make the necessary correction on the CTW database screen. Use the information on the associated paper record to make corrections to fields with transcription or coding errors.

    Note:

    These fields may or may not be highlighted in red.

  5. This manual is your main source of information. You may also need to research procedures in the following IRMs:

    • IRM 3.0.273, Administrative Reference Guide

    • IRM 3.10.72, Receiving, Extracting and Sorting

    • IRM 3.21.111, International Returns and Documents Analysis - Chapter Three Withholding Returns

    • IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates

    • IRM 3.37.110, Chapter 3 Withholding Returns

  6. Throughout this manual there are instructions to correct inaccurate and missing information, by researching the Integrated Data Retrieval System (IDRS). When researching IDRS, if you have made the determination the information on NAMES, NAMEI, NAMEE, or NAMEB is consistent with the CTW screen., Judgment must be used to determine consistency. The information does not need to be an exact match (Examples: John Smith on the CTW screen and John T. Smith on NAMES; Apt. 31 Elm St. on CTW screen and Apt. 321 Elm St. on NAMES).

    Note:

    When entering a TIN, do not enter dashes. It is a 9 position field and numeric only. Do not enter an invalid TIN, which is denoted with an asterisk (nnn-nn-nnnn*).

  7. The instructions contained in this text are used for correcting errors made by withholding agents, as well as those made by campus processing operations, on the following forms:

    • Form 1042-T Annual Summary and Transmittal of Forms 1042-S

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

  8. The IRM cannot address all issues that may arise as a result of correcting the records on the CTW database. In some cases, it may be necessary to refer the record(s) to your Subject Matter Expert (SME), lead, and/or manager to make a determination for the corrective action to be taken.

  9. 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

    • 60501ddd000-999 (OSPC paper only)

    • 29501ddd000–999 (OSPC - filed electronically)

    • Return Due Date: March 17, 2014

    • Extended Return Due Date: May 15, 2014

  10. The Form 1042-S is processed under the following at OSPC:

    • Program Code: 71720

    • File Source Code: Information Returns Master File (IRMF)

    • Tax Class: 5

    • MFT:12

    • Document Code: 02

    • Document Locator Number (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 is not changed after each 100,000 records identified. The DLNs range are the File Location Codes limited to work to be 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

    Note:

    Meeting the Program Completion Date (PCD) guideline dates in IRM 3.30.123, Processing Timeliness: Cycles, Criteria, Critical Dates , will ensure that the Form 1042-T and Form 1042-S processing meets the Taxpayer Identification Number (TIN) perfection routines in the Information Returns Processing (IRP) datastreams.

  11. The CTW program will move all records that have been corrected by the CTW user to the appropriate Master File. All Forms 1042-T corrected during the week will move each Tuesday to the Payor Master File (PMF). All Forms 1042-S corrected during the week will move each Friday to the Information Returns Master File (IRMF). All corrected records posted to the designated Master File will be researchable using the appropriate Information Returns Program (IRP) Command Codes.

3.22.111.3  (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, 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 telephone or in-person) their aforementioned number on the first contact.

3.22.111.3.1  (01-01-2014)
♦Taxpayer Advocate Service (TAS)♦

  1. Refer taxpayers to the Taxpayer Advocate Service (TAS), (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria ), when the contact meets TAS criteria and you cannot 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 these 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 in accordance with your local procedures.

3.22.111.4  (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.

3.22.111.5  (01-01-2014)
Securing Access to the CTW Database

  1. Access to the CTW database requires approval by management or a locally determined approving official. Management will also determine the level of access required to perform the employee's assigned duties (IRM 3.22.111.6, General Information and Procedures for CTW Leads and Managers, below).

  2. Designated UAP Administrators will grant approved level access to users using the UAP application, CTW Manager Role, and the SA Role in the OL5081 system. UAP Admins can grant access to the following roles:

    • CTW-Prod-11g-TCC-User

    • CTW-Prod-11g-TCC-Manager

    • CTW-Prod-11g-TCC-Reports

    • CTW-Prod-11g-TCC-Research-Reports

    • CTW-Prod-11g-TCC-SOI

    • User Admin Package (UAP) Prod

    Note:

    Access to roles other than User or Manager should be coordinated through the HQ Analyst.

  3. A User-ID and password will be required to access the UNIX system and CTW Oracle database. Take the following steps to obtain the necessary IDs and passwords:

    • Invoke the OL5081 system to

    • Request a password for the CTW database by initiating a Personal 5081.

    • Use the "Request access to an application" option.

    • In the "Look for" box, type CTW and then click "Find Now."

    • In the "Matching Applications" window, highlight "CTW-PROD-11G-TCC-USER (CTW)" and click "Save." The correct application should now appear in the "Saved Application List" window.

    • Click on the "continue" button.

    • Type the following information into the Special Instructions box: I will be a CTW user. I will need access to the CTW application.

      Note:

      Managers will request "CTW-PROD-11G-TCC-MANAGER(CTW)" access to CTW through the OL5081 process.

  4. A generic password will be issued. You will need to immediately change the generic password to a secure password by following the steps below:

    • Click the Internet Explorer Icon on your desktop.

    • Enter the URL http://ctw.enterprise.irs.gov:7778/forms/frmservlet?config=ctw in the address bar. Hit enter.

    • Click on the button "Press to Continue" on the CTW application screen.

    • Enter your SEID as your Username.

    • Enter the generic password given to you on the 5081 System. Follow screen prompts to change generic password to your permanent CTW password.

    Caution:

    If a user does not log in for a period of 45 days, security requires their account be locked. If the user does not log in for 90 consecutive days, security requires the account be deleted. In both cases, the user will need to access OL5081 to gain access to the CTW system.

    Note:

    CTW users will not be able to toggle between IDRS and the CTW database to perform research. To perform research on IDRS, the CTW user can minimize the CTW program and then perform the appropriate research. You may also "Restore Down" your IDRS screen, instead of minimizing, and "size" it to fit above a field on the database when you bring IDRS up for research. Another option is to use Task Manager to move between the CTW database and IDRS. To employ this option, hold down the Alt key and tap the Tab key to move through the open applications. Release the Alt and Tab keys, simultaneously, to bring up the desired application. All CTW users MUST exhaust all possible research to find a valid TIN, when instructed to do so.

3.22.111.6  (01-01-2014)
General Information and Procedures for CTW Leads and Managers

  1. All CTW users will be assigned different levels of access to the CTW database. CTW leads and managers will have access to various levels of the CTW database and will enter the database through a Manager Main Menu. CTW users (Tax Examiners) will enter the database through a Main Menu, limiting their access to correction screens only.

  2. Certain circumstances will require that a lead or manager perform an override on a erred Form 1042-S record that the tax examiner has corrected to the best of their ability and meets acceptable valid criteria. All override conditions must be reviewed for accuracy and completeness before the override password is entered, accepting the record to be moved to the Information Returns Master File (IRMF).

  3. Notify the Headquarters analyst if any Form 1042-T records are left on the database because they cannot be corrected. Scan and E-mail a copy of the Form 1042-T to the analyst.

  4. Ensure that the Non-Correctable (NC) records are reworked before the Cycle 32 PCD and again before the Cycle 51 PCD. The goal for the CTW program is for all records to move successfully to the IRMF.

3.22.111.6.1  (01-01-2014)
Printing Listings for Tax Examiners

  1. Errors to be worked by ERS Tax Examiners need to be printed off the CTW Application. All files are displayed in the order they need to be printed.

    Caution:

    In some circumstances, the listing will consist of thousands of DLN records. Please make sure that the printer is filled with paper and the toner is full.

  2. To print Form 1042-T error listings take the following steps:

    1. Login to CTW database.

    2. Select Form 1042-T Processing.

    3. Choose either paper or electronic 1042-T errors. Select the day.

    4. Select Print Listing of Form 1042-T errors.

    5. Once the reports have printed, the last page will provide a summary with a total count of Forms 1042-T in error for that date.

    6. Exit Form 1042-T Processing menu.

      Note:

      You can print all available files, however, they must be entered as an individual request for print.

  3. To print Form 1042-S error listings take the following steps:

    1. Login to CTW database.

    2. Select Form 1042-S Processing.

    3. Choose either paper or electronic 1042-S errors. Select the day.

    4. Select Print Listing of Form 1042-S errors.

    5. Once the reports have printed, the last page will provide a summary with a total count of Forms 1042-S in error for that date.

    6. Exit Form 1042-S Processing menu.

      Note:

      You can print all available files, however, they must be entered as an individual request for print.

3.22.111.6.2  (01-01-2014)
Inventory Screen

  1. The CTW inventory screen will display the following fields:

    Note:

    DO NOT have more than one user executing the Inventory Screen at the same time.

    Field Definition
    Inventory Date The data of the last download or correction process that took place.
    Beginning Inventory The record count of the previous inventory date.
    Received The count of all records received from download and correction screens processed.
    Records Processed The count of records that were worked on correction screens.
    Adjustment (RESTRICTED-CTW Programmers Only) Used to input a manual adjustment to the inventory counts. If the adjustments were made to the process count, the number will be a negative. If the adjustments were made to the received count, the number will be a positive.
    End Inventory The sum of Beginning Inventory plus Received plus the Adjustments minus Records Processed.
    Year to Date Total Records Processed A cumulative count of records processed for each category.
    Year to Date Total Records Received A cumulative count of records received for each category.

  2. To print the CTW Inventory Screen take the following steps:

    1. On keyboard invoke shift key and print screen key.

    2. Open Microsoft Word to a new document (blank document).

    3. Under the Edit menu click on paste (or use paste shortcut).

    4. The CTW Inventory screen will appear on the word document.

    5. Adjust the view percentage to 100 - 125%.

    6. Follow normal procedures to print the page.

      Note:

      This process can be used to print any screen throughout the CTW program.

3.22.111.7  (01-01-2014)
Daily CTW Work Assignment

  1. CTW users will log out their own work. Do not sign out more than four (4) pages of listings assigned at one time. Whenever printed listings are used, place your stamp number and date on each page and make sure the right corrective action is notated. The correct notation must be edited next to each DLN (e.g., NC, OR, No T, or a ✓ for Saved).

  2. All CTW users will complete assigned page(s) before signing out additional error listings. If you do not complete your assigned page(s), log your page(s) back in and leave the page(s) on top of work in first slot. If you have partially completed a page, place a line across where you left off. The next CTW user to work this page must put their stamp number and date below this line.

  3. Listings are to be placed in the appropriate designated area. There will be a specific tray for listings which have been completed and have case dispositions of "OR" or "No T."

3.22.111.8  (01-01-2014)
CTW Database Error Correction Process

  1. Each user will be given a listing, which will provide the DLN of the record, and a brief description of what field on the record is in error. Users will work the listing from top to bottom (First-In / First-Out). Take the following action when working the listing:

    • Place a check mark (✓) next to those records that were corrected and saved.

    • Place Non-Correctable or "NC" next to those records that could not be corrected.

  2. The message field provides additional information to the tax examiner on what the error is on the record. Clicking on a red highlighted field will put a white border around the field and display the error description in the Message Field.

  3. The point of contact field provides the name and number of contact personnel within the Withholding Agent's organization that can answer questions pertaining to the record.

  4. The remarks field captures additional information pertaining to the corrective action or the record. You must enter remarks with any record identified as being "OR" or, "NC." Records that have been corrected and saved do not require remarks, unless indicated in specific guidance within this IRM.

    Caution:

    You must make sure the remarks box closes before hitting the clear screen action or inputting the next DLN on the listing.

  5. The override field is used when all corrective actions have been exhausted and the record is being accepted as presented. The override field can only be input by a manager, lead, or SME and is password sensitive.

  6. After correcting or inputting data, you must click onto another entry field (Exception: the Message Box), to have the CTW database save the data you just input or corrected. Do this before saving the record. DO NOT hit the Enter key. If you hit the enter key, the CTW database may kick you off the system and you would need to log in to the CTW database again. If you inadvertently hit the Enter key, and the system does not kick you off, DO NOT continue to use the Enter key. The CTW database is a TIER II system and does not function in the same manner as the Error Resolution System (ERS) system.

  7. When working paper records, you must look at ALL fields, and make any necessary corrections. Use the information on the associated paper record to make corrections to fields with transcription or coding errors.

  8. Fields that have failed consistency, validity, or math error checks, will be highlighted in red on the CTW database screens. Tax examiners should research to correct fields, whenever possible. Use the information on the associated paper record to make corrections to all fields with transcription or coding errors. If through careful research on an electronic record you are able to obtain correct information, you must correct those fields. If you are correcting misplaced entries by moving information into correct fields, ensure you have deleted the information from the previous field. After ensuring all fields are accurate, save the record.

  9. Some records may show multiple fields in error, but a correction may not be necessary in each field. To save the record, make the necessary corrections. If any additional fields remain red, remove and re-enter the original information. This should allow the field(s) to turn white and allow you to save the record.

  10. It is possible to have a record that has no red fields. You may correct fields if it can be determined the information has been misplaced or has "slipped" to the wrong field (e.g. part of a name appears in the address line, all address information combined in one field).

  11. When inputting or correcting any field you must make sure that there is no space preceding the entry (Exception: Postal Code Field). The CTW database will look for the first character in the field to determine the validity of the field. If the field is a required field, and the first space is blank, the CTW database will see the field as being blank, regardless of what you have entered after the space. Ensure that all entries begin all the way to the left of the field.

  12. When moving information to correct fields, you may find it necessary to abbreviate due to space restrictions in certain fields. Use commonly acceptable abbreviations and maintain the integrity of information.

  13. 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.
  14. All research should be exhausted before marking a record as non-correctable. CTW records that must be marked non-correctable or "NC" will have a note left in the remarks box specifically identifying the error (i.e. NC W/H Calc Wrong ). If there are multiple errors on the record, this may be indicated in the remarks box (i.e. "NC mult ers" ). Notate the listing with "NC" Clear the screen. Any record that is determined to be non-correctable (NC) will remain on the error table and will not post to the PMF 1042-T) or the IRMF (1042-S).

  15. Ensure that all actions are taken prior to SAVING or marking a record for override (OR). Records that are saved or marked for override will be posted to PMF or the IRMF. It is necessary to look at all correction screens and correct all fields that can be corrected. After all actions have been completed, notate the listing with the resolution of the record. If you are marking a record for override (OR) and the information in a field(s) is CORRECT , it is not necessary to re-perfect the field(s) to remove the red highlighting.

  16. If after thorough research, it has been determined that a field on an electronic record cannot be corrected, it is not necessary to continue correcting the record. It may be noted as non-correctable (NC).

  17. If your record is in error, and you have no IRM instructions, mark the record as non-correctable (NC).

3.22.111.9  (01-01-2014)
Form 1042-T - General Information

  1. Form 1042-T is used by Withholding Agents to transmit Copy A of paper Forms 1042-S reporting U.S. source income paid to a foreign person.

  2. Withholding Agent - A withholding agent is any person, U.S. or foreign, that 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 (QI), a non-qualified intermediary (NQI), a withholding foreign partnership (WP), a withholding foreign trust (WT), a flow-through entity, a U.S. branch of a foreign insurance company or foreign bank that is treated as a U.S. person, a nominee under section 1446, and an authorized foreign agent. A person may be a withholding agent 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.

    • Qualified Intermediary- A qualified intermediary (QI) is any foreign intermediary (or foreign branch of a U.S. intermediary) that has entered into a qualified intermediary withholding agreement with the IRS. A QI may also be treated as a payee to the extent the QI assumes primary withholding responsibility or primary Form 1099 reporting and backup withholding responsibility for a payment. In this situation, the QI is required to withhold the tax. A QI is assigned a unique Employer Identification Number (EIN) for easy reference.

    • Non-Qualified Intermediary - Generally, the U.S. person who pays an amount subject to Non-Resident Alien (NRA) withholding is the person responsible for the withholding. However, other persons may be required to withhold. For example, a payment made by a flow-through entity or non-qualified intermediary that knows, or has reason to know, that the full amount of NRA withholding was not done by the person from which it receives a payment, is required to do the appropriate withholding since it also falls within the definition of a withholding agent.

  3. If a Withholding Agent is reporting 250 or more Forms 1042-S they are required to file their records electronically, through the FIRE (Filing Information Returns Electronically) system at ECC-MTB. The corresponding electronic record is the "W" record as described in Publication 1187, Specifications for Filing Forms 1042-S, Foreign Person's U.S. Source Income Subject to Withholding Electronically.

  4. For those Withholding Agents that have less than 250 Forms 1042-S to report, they can choose to file paper returns directly to the Ogden Submissions Processing Campus. The paper returns will follow normal submissions processing routines.

  5. Those Form 1042-T records that are in error, and are corrected, will be moved from the CTW database to the Payor Master File (PMF) for posting.

3.22.111.9.1  (01-01-2014)
Form 1042-T, Annual Summary and Transmittal of Forms 1042-S - General Correction Procedures

  1. Form 1042-T must be corrected before any associated Forms 1042-S can be corrected.

  2. The Form 1042-T Error Correction screen is used to correct records that have failed certain validity, consistency, and math error checks.

  3. Form 1042-T provides the following information:

    • Tax Year

    • Received Date

    • Name of Withholding Agent.

    • Withholding Agent Employer Identification Number (EIN).

    • Withholding Agent Address.

    • Withholding Agent EIN Indicator.

    • Line 1a -Type of paper Forms 1042-S attached.

    • Line 1a - Pro-Rata indicator.

    • Line 1b - Number of paper Forms 1042-S attached.

    • Line 2a - Total gross income on all paper Forms 1042-S (box 2) attached.

    • Line 2b- Total U.S. federal tax withheld on all paper Forms 1042-S (box 9) attached.

    • Final return indicator.

    • Signature.

  4. There are different types of Forms 1042-S filed (original, amended, pro-rata, and amended pro-rata). One Form 1042-T must be submitted for each type of paper Form 1042-S attached.

3.22.111.9.2  (01-01-2014)
CTW Database Correction Process - Form 1042-T

  1. The Form 1042-T screen provides pop-up window information for the following fields:

    • TIN Type Indicator

    • State Code and state name

    • Province Code and province name

    • Country Code and country name

    Note:

    Users can choose a valid value from the pop-up list. DO NOT change information submitted by the Withholding Agent.

3.22.111.9.3  (01-01-2014)
Retrieving a 1042-T Record to be Worked

  1. Take the following steps to retrieve a Form 1042-T record:

    • From the Chapter Three Withholding (CTW) Menu, select option for Form 1042-T Processing Menu, then

    • From the Form 1042-T Processing Menu, select option to Correct Form 1042-T errors, then

    • Click on Show Listing button to choose the DLN of the first record on your listing and take the appropriate correction action.

      Note:

      Form 1042-T can be worked using the Show Listing button or from the printed listing. When using the Show Listing option, the first DLN is typically highlighted. Click on the OK button for the record to come up. The DLN you selected will appear in the Withholding Agent DLN field. Any record that is corrected and saved will be removed from the list and will not appear when you access the Show Listing option again. If the record is non-correctable (NC) and you have cleared the screen (which will leave the record on the Error Table), the DLN will remain in the Show Listing window. Just click on the next DLN to continue.

  2. The Form 1042-T correction screen consists of two pages:

    • Page one - captures the Withholding Agent's Entity information;

    • Page two - captures information relevant to the income and counts.

3.22.111.9.4  (01-01-2014)
Form 1042-T Field Designators and Correction Procedures

  1. Fields that are highlighted in red on the CTW error screens will require an action to be taken. There may be additional errors on the screen, which are not highlighted. The following sections will define the various field designators and will provide correction procedures.

    Note:

    You must adhere to all error correction procedures. See

3.22.111.9.4.1  (01-01-2014)
Tax Year

  1. Tax Year - Identifies the tax period for which the withholding agent is submitting the Forms 1042-T.

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

    • Only numeric characters are valid.

    • May be current or prior year.

    • The Tax Examiner MUST check the Tax Year field on all paper records for transcription and editing errors. Ensure that the correct tax year appears on the screen.

    • Code and Edit will edit future tax years to the current tax year.

      Note:

      This field may or may not appear in red.

3.22.111.9.4.2  (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. This field can only be corrected on paper records.

    5. Refer the record to your SME/lead/manager, if you detect an error in the Received Date field on an electronic record. If an attempt is made to correct this field on an electronic record, you will receive an error message.

    6. The date should be stamped/edited below the signature area on paper Form(s) 1042-T. If no date is present, use the instructions below to determine the correct date to enter in the Received Date field.

    If Then
    Missing, incomplete, or illegible, Research document or attachments for the Received Date and enter accordingly.
  2. If the received date is not stamped or edited on the Form 1042-T and can't be located through the research discussed above, determine the date in the following order of priority:

    1. The earliest legible postmark date on the envelope.

    2. The Revenue Officer's date of signature.

    3. The taxpayer's date of signature

    4. The DLN Julian Date minus 10 days.

    5. The current date minus 10 days.

      Note:

      If mailed USPS "Certified", give to a designated person with internet access to find the "Acceptance" date on www.usps.com. If a designated Private Delivery Service, see IRM 3.10.72.6.2.4(3).

3.22.111.9.4.3  (01-01-2014)
Employer Identification Number (EIN)

  1. Employer Identification Number (EIN) - Identifies the Employer Identification Number (EIN) of the Withholding Agent, Qualified Intermediary or Non-Qualified Intermediary.

    • This is a 9 position field that must be present.

    • Only numeric characters are valid. However, all zeros (0's) or all nines (9's) are invalid characters.

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    DO NOT accept a Social Security Number (SSN) or an IRS Individual Taxpayer Identification Number (ITIN) in place of an EIN.

    If Then
    Missing, incomplete, or illegible, Research document or initiate research via IDRS using the name and address as it appears on the record.
    If found, enter EIN in field and continue processing.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    SSN or ITIN is present Initiate research via IDRS using name and address as it appears on the record.
    If found, enter EIN in field and continue processing.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

  2. Any Form 1042-T record, marked as NC, MUST be referred to your SME, lead, and/or manager. The non-correctable Form 1042-T record MUST be elevated to the HQ Analyst. Mark the corresponding Form 1042-S records as non-correctable if they fall out for error. The Form 1042-T and the corresponding Form 1042-S documents will be held in ERS until the Analyst can provide the correct information.

3.22.111.9.4.4  (01-01-2014)
Withholding Agent EIN Indicator

  1. Withholding Agent EIN Indicator - Identifies the type of tax identification number for the Withholding Agent.

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

    • The valid entries for this field are:

      Value Definition
      0 (blank) EIN Indicator
      1 QI EIN Indicator
      2 NQI EIN Indicator

      Note:

      This value appears on paper only, electronic file shows definitions only.

  2. Take the following actions:

    If Then
    Missing, incomplete, or illegible, Research the EIN to determine the correct indicator.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Change the indicator to "QI EIN."
    EIN indicator is in error and the Withholding Agent address is foreign and the EIN is within the QI EIN range, Change the indicator to "QI EIN."
    Indicator is QI EIN and the EIN is NOT within the QI EIN range and/or the address is domestic, Change the indicator to "EIN."

3.22.111.9.4.5  (01-01-2014)
Withholding Agent Name Line

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

    • These fields are 40 position fields.

    • Name Line 1 - Required.

    • Name Line 2/3 - Used to identify additional/supplemental name line data. (e.g., In Care of, In Trust for (ITF), Division, Department, Office, etc.)

  2. Valid characters for all name and address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

      Note:

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

    If Then
    Name Line 1 is missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
    If found, enter name line data in field(s) and continue processing.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

    If not found, mark listing as non-correctable (NC) and clear the screen.

3.22.111.9.4.6  (01-01-2014)
Withholding Agent Address Line

  1. Withholding Agent Address Line - Identifies the Withholding Agent address of record. This field consists of entries which identify street, city, state, province code (if applicable), country code (if applicable), and zip or foreign postal code. See IRM 3.22.111.9.4.5(2) for a list of valid characters. The following defines the various address entries:

    • Street Line 1 - is a required field and identifies the street address of record for the Withholding Agent. This field consists of 40 positions. The address must consist of number, street and apartment or suite number ( P. O. Box if mail is not delivered to street address). Abbreviate as needed, See Exhibit 3.21.111–5, Job Aid 2543–702 and Document 7475 for address abbreviations.

      If Then
      Missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
      If found, enter the corrected street information and continue processing.

      Note:

      Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

      If not found, mark listing as non-correctable (NC) and clear the screen.

    • Street Line 2 - is used to provide additional/supplemental information pertaining to the Withholding Agent's street address.

  2. When identifying City, State, Province Code, Country Code, and Zip/Foreign postal codes you must take the following into consideration before performing any correction procedures:

    If Then
    City, State, and Domestic Zip Code are present, Country Code should be blank. If a Country Code, or U.S., is present, delete. Enter "OC" in the blank Country Code.
    If State field is missing, Research document or initiate research via IDRS using the Withholding Agent's EIN.
    If found, enter the correct information and continue processing.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

    If not found, determine if the entity is foreign, in which case, state code does not apply. If unable to determine, mark listing as non-correctable (NC) and clear the screen.
    It appears the city, state, zip, province, country code, or foreign postal code has been misplaced, Determine the correct entries and enter in appropriate fields.
    If Country Code is CA, Province Code must be entered. See Exhibit 3.21.111-9 and Job Aid 2543–702, for Canadian Province codes. The Job Aid includes Canada Postal Code definers.

    • City - is a required field and identifies the city of record for the Withholding Agent. This is a 40 position field. Enter city or town (or other locality name).

      Note:

      If an APO (Army Post Office)/FPO (Fleet Post Office)/DPO (Diplomatic Post Office) address is present, you must ensure APO/FPO/DPO, the applicable state abbreviation, and zip code are in the City/State/ZIP field. An example of the format for APO/FPO/DPO addresses can be found in paragraph (3), IRM 3.22.111.10.4.18. (See Exhibit 3.21.111–6, State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones, Job Aid 2543–702 and Document 7475).

      If Then
      Missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
      If found, then enter the correct city information and continue processing.

      Note:

      Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

      If not found, mark listing as non-correctable (NC) and clear the screen.

    • State - is a required field if the Withholding Agent is a U.S. Withholding Agent, and is located within the United States, one of its territories, or an APO/FPO/DPO address. This is a 2 position field. See Exhibit 3.21.111–6, State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones, Job Aid 2543–702 and Document 7475, for the appropriate state abbreviation.

      Note:

      If the Withholding Agent is not located in a U.S. state, territory, or APO/FPO/DPO, then this field must be blank. DO NOT enter foreign country code in this field.

      If Then
      Missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
      If found, enter the correct state information and continue processing.

      Note:

      Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

      If not found, mark listing as non-correctable (NC) and clear the screen.

    • Province Code - is a required field if the Withholding Agent Country Code is CA (Canada). This is a 2 position field. The Province Code field is only present when the foreign Country Code for the withholding agent is CA (Canada). See Exhibit 3.21.111-9 and Job Aid 2543-702, for Canadian Province Codes. The Job Aid includes Canada Postal Code definers.

      If Then
      Missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
      If found, enter the correct province information and continue processing.

      Note:

      Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

      If not found, then mark listing as non-correctable (NC) and clear the screen.
      The city is blank and the country is CA (Canada), Enter full province name in the city field and appropriate Province Code in the Province Code field.
      A province, or Province Code is entered in the city line, for a country other than Canada, Leave the entry in the city line and do not enter a Province Code in the Province Code field.

    • Country Code - is a required field when the Withholding Agent is a foreign Withholding Agent. This field is a 2- position field. See Exhibit 3.22.111-1, Country Code Table and Document 7475 for correcting entity/address information.

      If Then
      Missing, incomplete, or illegible, Research document or initiate research via IDRS using the Withholding Agent's EIN.
      If found, enter the correct country information and continue processing.

      Note:

      Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

      If not found, mark listing as non-correctable and clear the screen.
      Country name is one of the following:
      Hong Kong (HK)
      Monaco (MN)
      Abu Dhabi (AE)
      Malta (MT)
      Mexico (MX)
      Singapore (SN)
      Luxembourg (LU)
      San Marino (SM)
      Vatican City (VT)
      Enter full country name in city field and appropriate Country Code in Country Code field.
      Country Code is one of the following:
      • TC

      • VP

      • WE

      • XE

      Change the expired code to match the current code:
      • TC to AE

      • VP to FR

      • WE to IS

      • XE to UK

    • Postal/Zip Code - This field identifies the foreign postal or domestic Zip Code for the Withholding Agent. This field varies between 5-9 positions. See Job Aid 2543–702 and Document 7475 for additional information on Zip Code ranges. Valid characters for this field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-).

      Note:

      If Withholding Agent address is U.S., then Zip Code must be present and must be numeric. If address is foreign, then foreign postal code may or may not be present and can be alpha and/or numeric. If foreign postal code is not present, and the country is other than Australia, it is not necessary to research for a Postal Code. If present, do not delete. Correct any obviously misplaced entries.

    • A foreign postal code must be present for all Australian addresses. If the Postal Code field is blank, then edit using the list below:

      Australian State/Territory Postal Code
      New South Wales and Australian Capital Territory (A.C.T.) 2000 - 2999
      Victoria 3000 - 3999
      Queensland 4000 - 4999
      South Australia 5000 - 5799
      Western Australia 6000 - 6799
      Tasmania 7000 - 7499
      Northern Territory 0800 - 0899

    • European postal systems frequently do not spell out the name of the country, instead, they will use a prefix to the postal code. At times the Withholding Agent will enter their foreign postal code and city only in the city field and leave the Country Code and foreign postal code fields blank. To assist you in determining missing Country and/or foreign postal code use the table below to determine Country and foreign postal codes.

    Country Name Prefix Length
    Austria (AU) A 4
    Belgium (BE) B 4
    Denmark (DA) DK 4
    Finland (FI) SK 5
    France (FR) F 5
    Germany (GM) D 4 or 5
    Hungary (HU) H 4
    Italy (IT) I 5
    Liechtenstein (LS) FL 4
    Norway (NO) N 4
    Sweden (SW) S 5
    Switzerland (SZ) CH 4

3.22.111.9.4.7  (01-01-2014)
Return Type Indicator, Line 1a

  1. Return Type Indicator (RTI)- identifies the type of Form 1042-S attached/submitted with Form 1042-T. On the Form 1042-T record, this information is separated into two fields (boxes) for Line 1a. The type of returns that are indicated in the first box are either an Original or Amended record.

    • No action is required for electronic records.

    • The first box on the CTW screen is located to the right of "Return Type Indicator."

    • Paper Form 1042-T are transcribed in ISRP and the ERS tax examiner must correct any transcription errors. Research the associated paper form to ensure entries on the screen are correct.

    • The Data transcriber should press the "Enter" key, which will generate a "0" in the RTI, if the filer has placed a check mark ✓ in the box on the form for Original (or if neither the Original or Amended boxes have been checked). The ERS tax examiner must ensure "Original" appears in the first box.

    • Data should enter a "1," if the filer has placed a check mark in the box for "Amended." The ERS TE must ensure "AMENDED" appears in the first box.

  2. Correct the screen using the table in IRM 3.22.111.9.4.8(2) below.

3.22.111.9.4.8  (01-01-2014)
Pro-Rata Basis Reporting, Line 1a

  1. Pro-Rata Basis Reporting - identifies whether the Withholding Agent is reporting Pro-Rata withholding on attached Form 1042-S. If the agent is reporting Pro-Rata withholding, the second box under Line 1a will be checked.

    • No action is required on electronic records.

    • The second box on the screen is located to the right of "if pro-rata."

    • Use the paper form as a source document and ensure entries on the screen are correct.

    • If no check mark is entered in the box for Pro-Rata, on the paper Form 1042-T, Data will hit the "Enter" key, which will generate a "0" in the field. The ERS TE should ensure that the second box under Line 1a indicates "Not Pro-Rata."

    • If there is a check mark in the box for Pro-Rata on the form, Data should enter a "1." ERS must ensure "Pro-Rata" appears in the second box, under Line 1a, on the screen.

  2. Use the table below to correct the screen for paper records only.

    If Then
    Amended box is checked, or there is an indication the form is amended, Click the "Original" button to change the record to Amended.
    Pro-rata box is checked, or there is an indication that the form is a pro-rata, Click the "Not Pro-Rata" button to change the record to Pro-Rata.
    Amended and pro-rata boxes are checked, or there is an indication the form is amended pro-rata, Click on both the "Original" and "Not Pro-Rata" buttons to change the record to Amended Pro-Rata.
    No boxes are checked and there is no indication the form is an amended pro-rata. Ensure the boxes on the screen indicate Original and Not Pro-Rata.

    Note:

    An indication would include a "✓" , or an "X" in the appropriate box(es), or a notation on the form or attachment.

3.22.111.9.4.9  (01-01-2014)
Number of 1042-S Attached, Line 1b

  1. Number of 1042-S Attached - identifies the number of paper Form 1042-S submitted with Form 1042-T or the electronically filed Form 1042-S submitted by a transmitting agent at ECC-MTB.

    • This is a required field and may contain up to 5 positions.

      If Then
      Missing or zero,
      • For paper records, count the number of associated Form(s) 1042-S and enter the correct number in the field. If there are no associated Form 1042-S, place a "1" in the field and refer the case to the SME, lead, or manager (feedback should be provided to Code and Edit).

      • For electronic records, enter a "1" in the field.

      Number of paper Form 1042-S is over 250 Verify the number is correct on the document. If the number does not match what is on the screen, override the field and insert the correct number.

3.22.111.9.4.10  (01-01-2014)
Total Gross Income Paid, Line 2a

  1. Gross Income Paid - identifies the total of gross income from all associated Form 1042-S.

    • This is a required entry and may contain up to 15 numerics.

    • All entries must be positive and will be in whole dollars only.

      If And Then
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.22.111.9.4.11  (01-01-2014)
Total U.S. Federal Tax Withheld, Line 2b

  1. Total U.S. Federal Tax Withheld - identities the U.S. Federal Tax withheld from all associated Form 1042-S (Total amount withheld includes all amounts from Form(s) 1042-S, Line 9).

    • This is a required entry and may contain up to 15 numerics.

    • Entries should be in whole dollars only.

    • Only zero (0), or positive entries are valid.

3.22.111.9.4.12  (01-01-2014)
Final Return Indicator

  1. Final Return Indicator - identities if the return is a final return and is located at the bottom of page 2 of the Form 1042-T screen.

    • This is a 1 position field.

    • The valid entries for this field are "0" or "1."

      If Then
      Final return - filer has placed a ✓ or X in the box "1" will be present in checkbox.
      Not a final return - the box has been left blank "0" will be in the checkbox.

3.22.111.10  (01-01-2014)
Form 1042-S - General Information

  1. Form 1042-S is used by Withholding Agents to report U.S. source income paid to a foreign person and to report amounts withheld under Chapter 3 of the Internal Revenue Code (IRC).

  2. Withholding Agents that have 250 or more Form 1042-S to submit must file electronically, using the FIRE system, at the ECC-MTB. The corresponding electronic record is the "Q" record as described in Publication 1187, Specifications for Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding Electronically.

  3. For those Withholding Agents that have less than 250 Form 1042-S to report, they can choose to file paper returns directly to the Ogden Submissions Processing Campus. The paper returns will follow normal submissions processing routines.

  4. Those Form 1042-S records that are in error, and are corrected, will be moved from the CTW database to the Information Returns Master File (IRMF) for posting.

3.22.111.10.1  (01-01-2014)
Form 1042-S - General Correction Procedures

  1. The Form 1042-S Error Correction screen is used to correct records that have failed certain validity, consistency, and math error checks.

  2. Form 1042-S provides the following information:

    • Tax Year

    • Type of Record

    • Box 1 - Income Code

    • Box 2 - Gross Income

    • Box 3 - Withholding Allowance

    • Box 4 - Net Income

    • Box 5 - Tax Rate

    • Box 6 - Exemption Code

    • Box 7 - U.S. Federal Tax Withheld

    • Box 8 - Withholding by other agents

    • Box 9 - Total withholding credit

    • Box 10 - Amount repaid to recipient

    • Box 11 - Withholding agent's EIN

    • Box 12a - WITHHOLDING AGENT'S name

    • Box 12b - Address (number and street)

    • Box 12c - Additional address line (room or suite no.)

    • Box 12d - City or town, province or state, country, ZIP or foreign postal code

    • Box 13a - Recipient's name

    • Box 13b - Recipient code

    • Box 13c - Address (number and street)

    • Box 13d - Additional address line (room or suite no.;

    • Box 13e - City or town, province or state, country, ZIP or foreign postal code

    • Box 14 - Recipient's U.S. TIN, if any ( includes check boxes for type of TIN - SSN or ITIN, EIN, QI-EIN)

    • Box 15 - Recipient's foreign tax identifying number, if any

    • Box 16 - Country Code

      Note:

      This box is for the Country Code for tax purposes.

    • Box 17 - Non-Qualified Intermediary's (NQI's/FLOW-THROUGH ENTITY'S name)

    • Box 18 - Country Code

      Note:

      This box is for the information in box 19c (NQI/Flow-through entity address).

    • Box 19a - Non-Qualified Intermediary's (NQI/Flow-Through Entity's) Address (number and street)

    • Box 19b - Additional address line (room or suite no.);

    • Box 19c - City or town, province or state, country, ZIP or foreign postal code

    • Box 20 - NQI's/Entity's U.S. TIN, if any

    • Box 21 - Payer's Name and TIN (if different from withholding agent's)

    • Box 22 - Recipient's account number (optional)

    • Box 23 - State Income Tax Withheld

    • Box 24 - Payer's State Tax no.

    • Box 25 - Name of State

  3. Boxes 17 through 25 contain optional information for the NQI and Payer. This optional information may, or may not, be present. If any of these optional fields are in error (red), and are the only fields that cannot be corrected, delete the extraneous information and save the record.

3.22.111.10.2  (01-01-2014)
CTW Database Correction Process - Form 1042-S

  1. The Form 1042-S screens provide pop-up window information for the following fields:

    • Income Code

    • Tax Rate

    • Exemption Code

    • Recipient Code

    • State Code

    • Province Code

    • Country Code

    Note:

    Users can choose a valid value from the pop-up list. DO NOT change information submitted by the Withholding Agent.

3.22.111.10.3  (01-01-2014)
Retrieving a Form 1042-S Record to be Worked

  1. Take the following steps to retrieve a Form 1042-S record:

    • From the Chapter Three Withholding (CTW) Menu, select option Form 1042-S Processing Menu, then;

    • From the Form 1042-S Processing Menu, select option for Correct Form 1042-S errors, then;

    • Input DLN of first record on listing in the Recipient DLN field and hit enter, then;

    • Once record retrieves, follow your IRM procedures and take corrective action.

      Caution:

      DO NOT click on the Show Listing button. This will bring up the list of all Form 1042-S records that are in error and cause a delayed response time, as the database retrieves hundreds of thousands of records at any given time. If you inadvertently select Show Listing, a pop-up window will appear and ask if you still want to Show Listing, indicating performance may be affected. You must select —"NO." If you inadvertently select "Yes," you will need to wait for the database to retrieve all the error Form 1042-S DLN records. After the listing appears, hit the cancel button and proceed with the instructions above by placing the DLN in the Recipient DLN field, then hit enter.

  2. The Form 1042-S correction process involves four error correction screens:

    • Screen one - captures the Withholding Agent's Entity information and captures data pertaining to the income.

    • Screen two - captures Recipient's information.

    • Screen three - captures NQI/Flow-Through Entity's information, if any.

    • Screen four - captures Payer's Information, if any.

  3. Junk 1042-S records will be corrected and will then fall out to error where they will have final correction. The DLN will not copy to the Error screen. Junk Error records that are considered non-Correctable should be taken to the SME, Lead or manager to verify that the record is non-Correctable before the screen is cleared. Records that cannot be corrected stay on the Junk Error Table.

  4. The purpose of the CTW Amend S Records Delete Screen is to match amended records with original input records. The screen first queries records from the CTW Amend S table and then matches them against records from the Junk S table and Error S table. Matching records will display in the Matching Records Found area at the bottom of the screen. Click on the yellow button next to the field(s) to update one record at a time. After all the matching records are deleted, click on the SAVE button in the top right corner of the screen. If there are no matching records found, click on the SAVE button.

    Note:

    You must have Manager rights to work Amended records.

3.22.111.10.4  (01-01-2014)
Form 1042-S Field Designators and Correction Procedures

  1. Fields that are highlighted in red on the CTW error screens will require an action to be taken. There may be additional errors on the screen, which are not highlighted. The following sections will define the various field designators and will provide correction procedures.

    Note:

    You must adhere to all error correction procedures. See .

  2. If the record states "There is no valid corresponding F1042-T for this record," , locate the 1042-T and check for errors. If no errors can be found, notify your Lead or Manager that you have a “No T” error. The Lead or Manager will use the steps below to resolve the issue:

    If Then
    The 1042-T has an incorrect DLN either on the paper or on the database ERS will follow renumbering procedures to have the 1042-T and the associated 1042-S documents renumbered using Form 4227 to route to Numbering.

    Note:

    The ERS TE will leave a note in the remarks box.

    The 1042-S has an incorrect cross-reference DLN for the corresponding 1042-T ERS will follow renumber procedures for the 1042-S documents using Form 4227 to route the documents to Numbering.

    Note:

    The ERS TE will leave a note in the remarks box.

    The documents are amended, and either the 1042-T or the corresponding 1042-S documents were input as originals ERS will follow reinput procedures for the 1042-S documents using Form 3893 to route to Data.

    Note:

    The 1042-T documents should be coded by Code and Edit to match the designation of the 1042-S.

    The documents are originals, and either the 1042-T or the corresponding 1042-S documents were input as amended ERS will follow reinput procedures for the 1042-S documents using Form 3893 to route to Data.

    Note:

    The 1042-T documents should be coded by Code and Edit to match the designation of the 1042-S.

    Reminder:

    Each user should place the check mark (✓), "OR," "NC," or "No T" on the listing next to the appropriate DLN.

3.22.111.10.4.1  (01-01-2014)
Tax Year

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

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

    • Only numeric characters are valid.

    • May be current or prior year.

    • The Tax Examiner MUST check the Tax Year field on all paper records for transcription and editing errors. Ensure that the correct tax year appears on the screen.

    • Tax years that fall outside the current plus nine year range will fall out to Junk.

    • Code and Edit will edit future tax years to the current tax year.

      Note:

      This field may or may not appear in red.

3.22.111.10.4.2  (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.

      If Then
      Missing, incomplete, or illegible, Research document or attachments for the received date.
      Unable to locate on document or attachments, Determine date using the following priority order:
      • DLN Julian date, minus 10 days, or

      • current date, minus 10 days.

3.22.111.10.4.3  (01-01-2014)
Cross Reference Document Location Number (DLN)

  1. Cross Reference Document Location 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.

    • This is a 14 position field that must be present.

    • If missing from paper filed Form 1042-S, then research and enter in the bottom left corner of the paper Form 1042-S.

3.22.111.10.4.4  (01-01-2014)
Return Type Indicator

  1. Return Type Indicator - identifies the type of Form 1042-S. On paper filed Form 1042-S, this field is located under the title and should be coded by Code and Edit.

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

    • The valid characters are "0" or "1," on electronic records.

    • The Code and Edit tax examiners should code the paper filed Form 1042-S with a "1," "2," , or "3," as appropriate (based on the filer's entries in the boxes below the title on the paper form).

    • For paper filed Form 1042-S, ERS must research and enter, using the instructions below:

    If Then
    No box is checked, Take no action.
    Amended box is checked, Code and Edit has coded 1, or there is an indication the form is amended, Click the "Original" button to change the record to Amended.
    Pro-rata box is checked, Code and Edit has coded 2, or there is an indication that the form is a pro-rata, Click the "Not Pro-Rata" button to change the record to Pro-Rata.
    Amended and pro-rata boxes are checked, Code and Edit has coded 3, or there is an indication the form is amended pro-rata, Click on both the "Original" and "Not Pro-Rata" buttons to change the record to Amended Pro-Rata.

    Note:

    An indication would include a ✓, or an "X" in the appropriate box(es), or a notation on the form or attachment.

  2. When the Return Type Indicator is in red (indicating an error) and it is the only field remaining in error (after all other fields have been corrected), follow the procedures below:

    • Left click on the red error field

    • Select 'Not Pro-Rata'

    • Click into another field

    • Save the record

3.22.111.10.4.5  (01-01-2014)
Income Code, Box 1 (Form 1042-S)

  1. Income Code - identifies the type of income being reported.

    • This is a 2 position numeric field that must be present. The valid entries are listed in the table below.

      Note:

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

    • If 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:

    • If missing from paper filed Form 1042-S then research and enter.

      Income Code Definition
      01 Interest paid by 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 qualifying for direct dividend 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 income 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 section 1445
      26 Unsevered growing crops and timber distributions by a trust subject to IRC section 1445
      27 Publicly traded partnership distributions subject to IRC section 1446
      28 Gambling winnings
      29 Deposit interest
      30 Original issue discount (OID)
      31 Short-term OID
      32 Notional principle contract 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. source dividend equivalent
      41 Guarantee of indebtedness
      42 Earnings as an artist or athlete—no central withholding agreement
      43 Earnings as an artist or athlete—central withholding agreement
      50 Other income

3.22.111.10.4.6  (01-01-2014)
Gross Income, Box 2 (Form 1042-S)

  1. Gross Income - identifies the gross income being reported.

    • This is a 12 position numeric field that must be present.

    • This field must contain a positive entry.

    • If missing from paper filed Form 1042-S, then research and enter.

    If Then
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ "

    Note:

    Do not change the gross income amount submitted by the Withholding Agent.

3.22.111.10.4.7  (01-01-2014)
Withholding Allowance, Box 3 (Form 1042-S)

  1. Withholding Allowance - identifies if a withholding agent applied a withholding allowance to the gross income to calculate a net income (Box 4).

    • This is a 12 position numeric field that is optional.

    • A Withholding Allowance can only be present if the Income Code is 15 through 19 or 42.

      If Then
      Gross income and net income are the same, and there is an entry in the withholding allowance field, Delete withholding allowance entry.
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ "≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Caution:

      Do not change the Income Code and/or withholding allowance submitted by the Withholding Agent.

3.22.111.10.4.8  (01-01-2014)
Net Income, Box 4 (Form 1042-S)

  1. Net Income- identifies the result of Gross Income (Box 2), minus Withholding Allowance (Box 3).

    • This is a 12 position numeric field that is optional.

    • This field should only be present when Income Code is 15 through 20 or 42.

      If Then
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Caution:

    Do not change the net income figure submitted by the Withholding Agent.

3.22.111.10.4.9  (01-01-2014)
Tax Rate, Box 5 (Form 1042-S)

  1. Tax Rate - identifies the tax rate applied to the income.

    • This is a 4 position numeric field that must be present.

    • The tax rate must consist of two digits, a decimal, and two digits (i.e., 30.00 for 30%).

    • If the ERS tax examiner must enter the Tax Rate (i.e. the field is blank or requires correction), the decimal point must be entered in the correct position.

      Note:

      Code and Edit is not required to edit the decimal and the Data Transcriber is not required to enter it. The decimal point is automatically generated into the field for both electronic and paper records.

    • Generally, tax rates for non-treaty countries equals 30%. However, tax rates between treaty countries vary.

    • If missing, check Treaty Tax Rate Chart (Exhibit 3.21.111–10 and Exhibit 3.21.111–11, and Job Aid 2543–702, for the tax rate(s) applicable to each country). If there are multiple valid treaty rates and/or no determination can be made, mark the listing as non-correctable (NC) and clear the record.

    • 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 35.00
      05.00 12.50 25.00  

      Caution:

      A design flaw has limited the space available in the 2009 version of the paper Form 1042-S, Box 5 for Tax Rate. This may cause the Tax Rate figure/amount to overflow into the Exemption Code field. ERS should be aware of the increased potential for coding and transcription errors.

    Caution:

    Do Not attempt to correct the tax rate, unless it is an obvious input or transcription error.

3.22.111.10.4.10  (01-01-2014)
Exemption Code, Box 6 (Form 1042-S)

  1. Exemption Code - if applicable, identifies the exemption code associated with the tax rate.

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

    • A valid Exemption Code "01" -"10" must be present if Box 5, Tax Rate equals zero ("00.00" ).

    • 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 Income 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)

  2. If Exemption Code field is blank and any of the following conditions exist, take the following actions:

    If Then
    Claim of provision under section of the Internal Revenue Code (IRC) is claimed, or a copy of the code is attached, Enter "02."
    Statement is attached indicating the income is from non - U.S. sources, Enter "03."
    Statement is attached defining specific treaty article, Enter "04."
    Statement is attached indicating income reported is related to portfolio interest, Enter "05."
    Tax Rate is other than 30%, Initiate correspondence with Withholding Agent to send amended record. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.22.111.10.4.11  (01-01-2014)
Federal Tax Withheld, Box 7 (Form 1042-S)

  1. Federal Tax Withheld - identifies the amount of U.S. federal tax withheld.

    • This is a required entry and may contain up to 12 numerics.

    • All entries must be zero or positive, and should be in whole dollars only.

      If Then
      No tax was withheld, Zero ("0" ) will be entered.
      Tax Rate, Box 5, is present and Tax Withheld equals "0," or a negative amount, Initiate correspondence with Withholding Agent to send amended record. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    Do not change the figure for amount of tax withheld submitted by the Withholding Agent.

3.22.111.10.4.12  (01-01-2014)
Withholding by Other Agents, Box 8 (Form 1042-S)

  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.

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

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

3.22.111.10.4.13  (01-01-2014)
Total withholding credit, Box 9 (Form 1042-S)

  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 and you have a paper record, research Form 1042-S. If there are entries in boxes 7 and/or 8, compute and enter total amount in Total Withholding Credit field.

3.22.111.10.4.14  (01-01-2014)
Amount Repaid to Recipient, Box 10 (Form 1042-S)

  1. Amount Repaid to Recipient - 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.

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

    • All entries must be zero or positive and should be in whole dollars only.

3.22.111.10.4.15  (01-01-2014)
Withholding Agent Information, Boxes 11, 12a-12d (Form 1042-S)

  1. Withholding Agent Information - identifies Withholding Agent entity information. This information is read only and cannot be updated from the Form 1042-S screen. Withholding Agent information is corrected on the Form 1042-T correction screens. Any corrections made to the Withholding Agent entity information are automatically changed on the Form 1042-S correction screen.

  2. The fields are:

    • Withholding Agent Employer Identification Number

    • Withholding Agent EIN Indicator

    • Withholding Agent Name

    • Withholding Agent Address

      Note:

      If it appears the Withholding Agent entity information is incorrect, then the CTW user will need to refer the case to the lead. The manager/lead should contact the HQ Analyst with the Cross-Reference DLN and the DLN of the Form 1042-S. Skip all related Form 1042-S records for this Withholding Agent.

      Note:

      Only one 1042-T will be prepared for all of the IRS Commissioner's issued paper Forms 1042-S, Copy A. In addition, the Withholding Agent's address on the IRS Commissioner's Forms 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 Commissioner's Form 1042. See IRM 3.17.79, Accounting Refund Transactions, for more information on Accounting refund practices for Chapter Three Withholding.

3.22.111.10.4.16  (01-01-2014)
RECIPIENT'S Name, Box 13a (Form 1042-S)

  1. Recipient's Name - identifies the name of the Recipient. This field consists of the following entries:

    • Name Line 1 is a 40 position field and is a required entry.

    • Name Line 2/3 are used for supplemental information (e.g. In care of, In Trust For (ITF), Division, Department, Office, etc.).

      Valid Characters are:

      • Alpha (A-Z)

      • Numeric (0-9)

      • Blank

      • Ampersand (&)

      • Hyphen (-)

      • Comma (,)

      • Percent Sign (%), which is used to indicate "in care of" and is valid in the first position only.

      Note:

      See chart below for correcting recipient's name, address, and TIN.

    If Then
    Name Line 1 is missing, incomplete, or illegible, Research document or attachment,
     
    Recipient U.S. TIN is present, Initiate research on IDRS using Recipient TIN to obtain name and address of record.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

    If research is performed and the Name and/or Address cannot be perfected, Enter in the Remarks area, "NC Researched No Data Found (RNDF)." Mark the listing as NC and clear the screen.

  2. If Recipient Code is "13, 14, 15, or 16," Name Line 1 should be Withholding Rate Pool. See information in IRM 3.22.111.10.5(3) for Recipient Codes 13 -16.

  3. If Recipient Code is "20," then Recipient Name Line 1 must be "Unknown." See IRM 3.22.111.10.5(3).

3.22.111.10.4.17  (01-01-2014)
Recipient Code, Box 13b (Form 1042-S)

  1. Recipient Code - identifies the recipient of the income.

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

    • Only numeric characters are valid.

    • If only one digit is present, enter a zero (0) before the entry, (i.e., "5" is present, enter "05" ).

    • 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
      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 fund
      20 Unknown recipient

      Note:

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

      21 Qualified securities lender
      22 Qualified securities lender-other

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

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

  3. If Recipient Code is "13, 14, 15, or 16," Name Line 1 must be Withholding Rate Pool. Withholding Rate Pool may also be spelled incorrectly. See information in IRM 3.22.111.10.5(3) for Recipient Codes 13 - 16.

  4. If Recipient First Name Line equals "Unknown," then Recipient Code must be "20." Unknown may be spelled incorrectly. Do not change the withholding agent's entry for the Recipient Code. See IRM 3.22.111.10.5(3) for more information.

  5. If the Recipient Code is "20," the tax rate is 30.00, and a name is on Recipient's Name Line 1, see IRM 3.22.111.10.5(3).

3.22.111.10.4.18  (01-01-2014)
Recipient's Address, Boxes 13c-13e (Form 1042-S)

  1. Recipient's Address - identifies the address of the recipient. See IRM 3.22.111.9.4(1) for a list of valid characters.

  2. These fields consist of entries which identify street, city, state, province code, if applicable, country code, if applicable and zip or foreign postal code.

    If Then
    Illegible or missing, Research the attached document for data.
    Unable to determine, Perform IDRS research for correct information.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

    It appears the city, state, zip, province, country code, or foreign postal code has been misplaced, Determine the correct entries and enter in the appropriate fields.
    City, State, and Domestic Zip Code are present, Country Code must be blank. If a Country Code, or U.S., is present, delete.

    1. Address (number and street) - Street Line 1 - is a required field and identifies the street address of the recipient. The address must consist of number, street and apartment or suite number, if applicable. This field consists of 40 positions. Abbreviate as needed.

      Exception:

      Recipient's street address may be blank if the Recipient Code is "20" and the recipient's first name line is "Unknown" or "Unknown Recipient." The address may also be blank if the Recipient's Code is 13 - 16 and the first name line is "Withholding Rate Pool (WHRP)." If an address is present, DO NOT delete.

      If Then
      Mail is not delivered to a street address, Recipient must provide P.O. Box.
      Recipient's address is a P.O. Box, Enter "OR R-addr P.O. Box" in remarks field and mark listing "OR" for Override procedures.

      Note:

      If all items are corrected, Save record instead of (OR).

    2. Street Line 2 - is used to provide additional or supplemental information pertaining to the recipient's street address.

    3. City - is a required field that consists of up to 40 positions. Enter the city or town (or other locality name). Enter APO/FPO/DPO in this field, if applicable. An example of the format for APO/FPO/DPO addresses can be found in paragraph (3), below.

    4. State - is a required field if the recipient is in the U.S. Enter the two-character abbreviation using Exhibit 3.21.111–6, State Abbreviation Code Table.

      Note:

      If City, State, and Domestic Zip Code are present, DO NOT enter a country code. See Table 3.22.111.9.4.18 (2), above.

    5. Province Code - is a required field if the recipient's Country Code is CA (Canada) and consists of 2 positions. For all other recipient addresses this field should be blank.

      If Then
      Missing, incomplete, or illegible, Research supporting documentation or Province Code table (see Exhibit 3.21.111–9 and Job Aid 2543–702, for correct Province Code. The Job Aid includes Canada Postal Code definers).
      The city is blank and the country is CA (Canada) Enter full province name in the city field along with the Province Code and Foreign Postal Code.

    6. Country Code - is a required field when the recipient's address is foreign and consists of 2 positions. See Exhibit 3.22.111-1 and Document 7475 to correct address/entity country codes.

      If Then
      Missing, incomplete, or illegible, Research supporting documentation or Country Code table for correct code.
      Country name is one of the following:
      • Hong Kong (HK)

      • Monaco (MN)

      • Abu Dhabi (AE)

      • Malta (MT)

      • Singapore (SN)

      • Luxembourg (LU)

      • Mexico (MX)

      • San Marino (SM)

      • Vatican City (VT),

      Enter country name in city field and Country Code in Country Code field.
      Country Code is one of the following:
      • TC

      • VP

      • WE

      • XE

      Change the expired code to match the current code:
      • TC to AE

      • VP to FR

      • WE to IS

      • XE to UK

      Note:

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

    7. Postal / Zip Code - identifies the foreign postal or domestic zip code for the recipient. This field varies between 5 - 9 positions. If foreign postal code is not present, and the country is other than Australia, it is not necessary to research for a Postal Code. If present, do not delete. Correct any obviously misplaced entries.

      Valid characters are:

      • Alpha (A-Z)

      • Numeric (0-9)

      • Hyphen (-)

      If Then
      Recipient address is in U.S., Zip code must be present and must be numeric.
      Recipient address is foreign, Foreign postal code may or may not be present and can be alpha and/or numeric.

    • A Foreign Postal Code must be present for all Australian addresses. If the Postal Code field is blank, then edit using the list below:

      Australian State/Territory Foreign Postal Code
      New South Wales and Australia Capital Territory (A.C.T.) 2000 - 2999
      Victoria 3000 - 3999
      Queensland 4000 - 4999
      South Australia 5000 - 5799
      Western Australia 6000 - 6799
      Tasmania 7000 - 7499
      Northern Territory 0800 - 0899

  3. APO/FPO/DPO addresses use the following format:

    EXAMPLE:

    Payee Name Line - PVT. Willard J. Doe

    Address Line - Company F. PSC Box nnADD

    Address Line - 100 167 REGT

    City - APO (or FPO/DPO)

    State - AE, AA, or AP

    Zip Code ranges - AE = 090nn-098nn, AA = 340nn, AP = 962nn-966nn

3.22.111.10.4.19  (01-01-2014)
Recipient's U.S. TIN, Box 14 (Form 1042-S)

  1. Recipient's U.S. TIN- identifies the recipient's TIN. This is a 9 position field that may or may not be present. Research is always required when a valid TIN is not present. If a valid TIN is found, enter the valid number in the Recipient's TIN field.

  2. Only numeric characters are valid. However, all zeroes (0) or all nines (9) are invalid entries. If the Recipient TIN is all zeroes (0) or all nines (9), this is considered an invalid TIN. You must always research IDRS to find a valid TIN for the recipient when the TIN is missing, or there is an invalid entry in the field. If none is found and the TIN is a required field, mark listing as "NC" non-correctable.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

  3. The Recipient's TIN cannot be the same as the Withholding Agent's EIN, Box 11.

  4. If other than nine numeric characters, delete entire entry, if unable to locate a valid TIN through IDRS research.

    Note:

    The recipient's entity information may be used with Command Codes NAMES and NAMEI to research for a valid TIN.

    If Then
    Exemption Code is "01" and Tax Rate is 00.00, Recipient TIN must be present. If missing, initiate IDRS research.
    Exemption Code is "04" and Income Code is "01" - "08," or "29" -"31," Recipient TIN is required. If missing, initiate IDRS research.
    Exemption Code is "01" , or "99" , and Income Code is "09" through "28," or "50," Recipient TIN must be present. If missing, initiate IDRS research.
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. If a valid TIN cannot be located and the Recipient TIN is not required (per table above), take the following actions:

    IF THEN
    TIN field contains an invalid number (less than nine digits, all zeroes (0) or all nines (9), Clear the field.
    "NONE" appears in the Recipient U.S. TIN Indicator box,
    1. Left-click on the drop down

    2. Select SSN/TIN

    3. Left-click on the drop down again

    4. Select NONE

    5. Left-click in the Recipient U.S. TIN box

    Recipient U.S. TIN Indicator box shows other than "NONE, " Left-click on the drop down and select "NONE." Then, left click in the Recipient's U.S. TIN box.

    Note:

    This should remove the error condition for the TIN and allow the record to be saved (when no other fields are in error). If not, refer to lead/manager.

3.22.111.10.4.19.1  (01-01-2014)
Recipient's U.S. TIN Indicator checkbox, Box 14 (Form 1042-S)

  1. Recipient's U.S. TIN Indicator checkbox - identifies the type of U.S. TIN. This is a 1 position field that may or may not be present.

  2. The valid entries for this field are "0," "1," "2," or "3."

    • "0" = No TIN required.

    • "1" = SSN/ITIN present.

    • "2" = EIN present.

    • "3" = QI EIN present ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.22.111.10.4.20  (01-01-2014)
Recipient's Foreign Tax Identifying Number, Box 15 (Form 1042-S)

  1. Recipient's Foreign Tax ID number - represents the recipient's identifying number, used in the country of residence for tax purposes. This is a 22 position field that may be present. Alpha and numeric characters are valid.

3.22.111.10.4.21  (01-01-2014)
Recipient's Country Code, Box 16 (Form 1042-S)

  1. Recipient's Country Code - identifies the recipient's Country Code of residence for tax purposes and treaty benefits. This is a 2 position field that must be present. Use Exhibit 3.22.111-1, Country Code chart for editing Form 1042-S, Box 16 and Document 7475 for correcting country code for tax purposes. Only alpha characters are valid.

    If Then
    Box 16 is blank, Research Box 13e, for Country Name, enter the appropriate Country Code as shown in Exhibit 3.22.111-1, Country Code Table for correcting Form 1042-S, Box 16. If a domestic address has been entered in Box 13e for the recipient, enter "OC" in the blank Country Code field.
    If Box 13e & 16 are blank, Research document and if no data found, mark the listing non-correctable (NC) and clear the screen.
    Country Code is one of the following:
    • TC

    • VP

    • WE

    • XE

    Change the expired code to match the current code:
    • TC to AE

    • VP to FR

    • WE to IS

    • XE to UK

  2. If the Withholding Agent entered Country Code "OC" for the Recipient Country Code in Box 13e, then take the following steps:

    If Then
    The Tax Rate, Box 5, is less than 30%, Research document, or initiate research via IDRS using the recipient's TIN, to locate country of residence. Determine the correct Country Code using Exhibit 3.22.111-1, Country Code Table for correcting Form 1042-S, Box 16 and Document 7475.

    Note:

    Whenever you perform IDRS research, ensure you have accessed the appropriate account. If the IDRS research shows information which is not consistent with the CTW correction screen, do not correct the fields. Mark the listing as NC and clear the screen.

    The Tax Rate, Box 5, is 30%, Leave the "OC" in the Country Code field.

3.22.111.10.4.22  (01-01-2014)
NQI's/ Flow-Through Entity's Name, Address and TIN, Boxes 17, 18, 19a-19c, and 20 (Form 1042-S)

  1. Non-Qualified Intermediary's (NQI's)/ Flow-Through Entity's Name, Address and TIN- identifies the name, address and TIN of a Non-Qualified Intermediary or Flow-Through entity.

  2. These fields are optional and if present will consist of the following fields:

    • NQI's Name - 40 position field;

    • NQI's Country Code - 2 position field;

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

    • NQI's/Entity's TIN - 9 position field.

      Note:

      If any of the above fields are present follow procedures in the Recipient address area for correction.

  3. If any of these optional fields are in error (red), and are the only fields that can't be corrected, delete the extraneous information and save the record. If you are unable to save the record, mark the listing for override ("OR" ) and make a note in the remarks section, indicating override.

3.22.111.10.4.23  (01-01-2014)
Payer's Entity Information, Boxes 21 and 23–25, (Form 1042-S)

  1. Payer's Entity Information - identifies Payer information, if present.

  2. These fields 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 field;

    • State Code - 2 position alpha field.

  3. If any of these optional fields are in error (red), and are the only fields that can't be corrected, delete the extraneous information and save the record.

3.22.111.10.4.24  (01-01-2014)
Recipient's Account Number (optional), Box 22 (Form 1042-S)

  1. Recipient's Account Number - is assigned by the Withholding Agent and is used to identify the recipient's investment account.

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

    • Any character is valid.

3.22.111.10.5  (01-01-2014)
Consistency, Validity and Math Error Correction Procedures

  1. All consistency and validity checks are based on a complex matrix that uses Income Code, Recipient Code, Tax Rate, Exemption Code, and Country Code, to determine if the record is filed properly. These checks and balances are based on current Tax Treaty application rules.

  2. All math error checks are based on formulas preset within the CTW database and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  3. To correct records that fail these checks take the following actions:

    If Then
    Tax Rate is greater (>) than "0" and the amount in Box 7, Federal tax withheld, Box 8, Withholding by other agents, and Box 9, Total Withholding Credit, is "0," and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ gross income times tax rate, Save record.
    Tax Rate is greater (>) than "0" and the amount in Box 7, Federal tax withheld, Box 8, Withholding by other agents, and Box 9, Total Withholding Credit, is "0," and ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ gross income times tax rate, Enter in remarks field "W/H Calc Wrong." DO NOT save record. Notate "NC" on listing for non-correctable procedure and clear screen.
    Sum of Box 7, Federal tax withheld, and Box 8, Withholding by other agents, is greater than the gross income times the tax rate, Enter in remarks "OR W/H Calc Wrong." DO NOT save record. Notate "OR" on listing for override procedure and clear screen.
    Recipient Code is 13, 14, 15 or 16, The Recipient first Name Line must be "Withholding Rate Pool." If other than Withholding Rate Pool is present, enter Withholding Rate Pool in Name Line 1, move entry from Name Line 1 to Name Line 2 and Name Line 2 to Name Line 3, if applicable. If the Recipient Code field is still red, then click on the box to the right of the Recipient Code box and re-enter the code entered in the original record (13-16), as appropriate. If all corrections have been made to the record, SAVE the record. If other errors remain on the record, enter remarks and notate "OR" on listing for override procedures.

    Note:

    Abbreviate, whenever necessary, to ensure information fits into available space in field.

    Recipient State Code is in error, Using the Recipient's Zip Code, determine the appropriate State. Click on the button next to State, highlight the State Code and name, and hit OK. This will bring the proper State code associated to the zip code.
    Recipient Code is 20, The Recipient first Name Line MUST be "Unknown." If other than "Unknown" is present, enter Unknown in Name Line 1, move entry from Name Line 1 to Name Line 2 and Name Line 2 to Name Line 3, if applicable.

    Note:

    Abbreviate whenever necessary to ensure information fits into available space in fields.



    If the Recipient Code field is still red, then click on the box and re-enter "20." If all corrections have been made to the record, SAVE the record. If other errors remain on the record, and the tax rate is 30%, enter remarks and notate "OR" on the listing for override procedures.

    Note:

    If the tax rate is other than 30%, mark the record as non-correctable (NC), after following all of the above procedures.

Exhibit 3.22.111-1 
Country Code Chart for Tax Purposes (Form 1042-S, Box 16)

Country Code Chart (Form 1042-S, Box 16)
Foreign Country / Possession Country Code
Abu Dhabi (United Arab Emirates) AE
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

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