3.21.111 Chapter Three and Chapter Four Withholding Returns
- 3.21.111.1 Program Scope and Objectives
  - 3.21.111.1.1 Background
  - 3.21.111.1.2 Authority
  - 3.21.111.1.3 Responsibilities
  - 3.21.111.1.4 Program Management and Review
  - 3.21.111.1.5 Program Objectives and Review
  - 3.21.111.1.6 Terms and Acronyms
  - 3.21.111.1.7 Related Resources
- 3.21.111.2 IRS Employee Contacts Section 3705(a)
  - 3.21.111.2.1 ♦Taxpayer Advocate Service (TAS)♦
  - 3.21.111.2.2 Correspondence Imaging Systems (CIS) Returns
  - 3.21.111.2.3 Correspondence Action
- 3.21.111.3 General Processing Procedures
  - 3.21.111.3.1 Types of Edit Marks
  - 3.21.111.3.2 Document Controls
    - 3.21.111.3.2.1 Document Locator Number (DLN)
    - 3.21.111.3.2.2 Verification of Numbered Blocks of Returns
  - 3.21.111.3.3 ♦IRM Deviation Procedures♦
- 3.21.111.4 Form 1042-T, Annual Summary and Transmittal of Forms 1042-S - General Information
  - 3.21.111.4.1 Form 1042-T, Line by Line Editing
    - 3.21.111.4.1.1 Tax Year
    - 3.21.111.4.1.2 Received Date
    - 3.21.111.4.1.3 Line 1a - Chapter Three and Chapter Four Indicator
    - 3.21.111.4.1.4 Chapter 3 and Chapter 4 Status Codes
    - 3.21.111.4.1.5 Employer Identification Number (EIN) - Withholding Agent
    - 3.21.111.4.1.6 Withholding Agent Name Line
    - 3.21.111.4.1.7 Withholding Agent's Address
    - 3.21.111.4.1.8 Line 1b - Original or Amended Checkbox
    - 3.21.111.4.1.9 Pro-rata Basis Reporting Checkbox - Line 1c
    - 3.21.111.4.1.10 Number of Paper Forms 1042–S - Dotted Line 1d
    - 3.21.111.4.1.11 Partnership Withholding in Subsequent Year - Checkbox Line 1e
    - 3.21.111.4.1.12 Total Gross Income, Line 2
    - 3.21.111.4.1.13 Total Federal Tax Withheld - Lines 3a and 3b
    - 3.21.111.4.1.14 Final Return Checkbox
    - 3.21.111.4.1.15 Signature Area
  - 3.21.111.4.2 Preparation of Form 1042-T for Transcription and Routing of Associated Form 1042-S
- 3.21.111.5 Form 1042-S - Foreign Person's U.S. Source Income Subject to Withholding
  - 3.21.111.5.1 Form 1042-S Editing
    - 3.21.111.5.1.1 Tax Year
    - 3.21.111.5.1.2 Received Date
    - 3.21.111.5.1.3 Cross Reference DLN
    - 3.21.111.5.1.4 Unique Form Identifier (UFI)
    - 3.21.111.5.1.5 Amended Checkbox
    - 3.21.111.5.1.6 Amendment Number
    - 3.21.111.5.1.7 Income Code, Box 1
    - 3.21.111.5.1.8 Gross Income, Box 2
    - 3.21.111.5.1.9 Chapter Three or Four Indicator, Box 3
    - 3.21.111.5.1.10 Chapter 3 Exemption Code, Box 3a
    - 3.21.111.5.1.11 Chapter 4 Exemption Code, Box 4a
    - 3.21.111.5.1.12 Chapter 3 and Chapter 4 Tax Rates, Boxes 3b and 4b
    - 3.21.111.5.1.13 Withholding Allowances, Box 5
    - 3.21.111.5.1.14 Net Income, Box 6
    - 3.21.111.5.1.15 Federal Tax Withheld, Box 7a
    - 3.21.111.5.1.16 Tax Withheld Not Deposited Was Not Deposited Because Escrow Procedures Were Applied, Box 7b
    - 3.21.111.5.1.17 Check If Withholding Occurred In Subsequent Year With Respect To A Partnership, Box 7c
    - 3.21.111.5.1.18 Tax Withheld by Other Agents, Box 8
    - 3.21.111.5.1.19 Overwithheld tax repaid to recipient pursuant to adjustment procedures, Box 9
    - 3.21.111.5.1.20 Total Withholding Credit, Box 10
    - 3.21.111.5.1.21 Tax Paid by Withholding Agent, Box 11
    - 3.21.111.5.1.22 Withholding Agent's EIN, Box 12a
    - 3.21.111.5.1.23 Withholding Agent's Chapter 3 Status Code, Box 12b
    - 3.21.111.5.1.24 Withholding Agent's Chapter 4 Status Code, Box 12c
    - 3.21.111.5.1.25 Withholding Agent's Name, Box 12d
    - 3.21.111.5.1.26 Withholding Agent's Global Intermediary Identification Number (GIIN), Box 12e
    - 3.21.111.5.1.27 Withholding Agent's Country Code, Box 12f
    - 3.21.111.5.1.28 Withholding Agent's Foreign Taxpayer Identification Number, Box 12g
    - 3.21.111.5.1.29 Withholding Agent's Address Boxes, 12h and 12i
    - 3.21.111.5.1.30 Withholding Agent's City or Town, Province or State, Country, ZIP or Foreign Postal Code, Box 12i
    - 3.21.111.5.1.31 Recipient Name, Box 13a
    - 3.21.111.5.1.32 Recipient's Country Code, Box 13b
    - 3.21.111.5.1.33 Recipient Address, Boxes 13c and 13d
    - 3.21.111.5.1.34 Recipient's U.S. Taxpayer Identification Number (TIN), Box 13e
    - 3.21.111.5.1.35 Recipient's Chapter 3 Status Code, Box 13f
    - 3.21.111.5.1.36 Recipient's Chapter 4 Status Code, Box 13g
    - 3.21.111.5.1.37 Recipient's GIIN, Box 13h
    - 3.21.111.5.1.38 Recipient's Foreign Tax Identifying Number, if any, Box 13i
    - 3.21.111.5.1.39 LOB Code, Box 13j
    - 3.21.111.5.1.40 Recipient's Account Number, Box 13k
    - 3.21.111.5.1.41 Recipient's Date of Birth, Box 13l
    - 3.21.111.5.1.42 Primary Withholding Agent's Name, Box 14a
    - 3.21.111.5.1.43 Primary Withholding Agent's EIN, Box 14b
    - 3.21.111.5.1.44 Pro-rata Basis Reporting Checkbox, Box 15
    - 3.21.111.5.1.45 Intermediary or Flow-through Entity's EIN, Box 15a
    - 3.21.111.5.1.46 Intermediary Chapter 3 Status Code, Box 15b
    - 3.21.111.5.1.47 Intermediary Chapter 4 Status Code, Box 15c
    - 3.21.111.5.1.48 Intermediary or Flow-through Entity's Name, Box 15d
    - 3.21.111.5.1.49 Intermediary or Flow-through Entity's GIIN, Box 15e
    - 3.21.111.5.1.50 Intermediary or Flow-through Entity's Country Code, Box 15f
    - 3.21.111.5.1.51 Intermediary or Flow-through Entity's Foreign Tax Identification Number, Box 15g
    - 3.21.111.5.1.52 Intermediary's or Flow-Through Entity's name and Address, Boxes 15d, 15h, and 15i
    - 3.21.111.5.1.53 Payer's Name, Box 16a
    - 3.21.111.5.1.54 Payer's TIN, Box 16b
    - 3.21.111.5.1.55 Payer's GIIN, Box 16c
    - 3.21.111.5.1.56 Payer's Chapter 3 Status Code, Box 16d
    - 3.21.111.5.1.57 Payer's Chapter 4 Status Code, Box 16e
    - 3.21.111.5.1.58 State Income Tax Withheld, Box 17a
    - 3.21.111.5.1.59 Payer’s State Tax No., Box 17b
    - 3.21.111.5.1.60 Name of State, Box 17c
- Exhibit 3.21.111-1 Form 1042-T, Annual Summary and Transmittal of Forms 1042-S
- Exhibit 3.21.111-2 Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding
- Exhibit 3.21.111-3 Form 1042-T Transcription Lines
- Exhibit 3.21.111-4 Form 1042-S Transcription Lines
- Exhibit 3.21.111-5 Chapter 3 Status Codes
- Exhibit 3.21.111-6 Chapter 4 Status Codes
- Exhibit 3.21.111-7 Canadian Province Codes
- Exhibit 3.21.111-8 Valid Treaty Rate by Country - All Income Codes (EXCEPTION: Income Code 50 (Other Income))
- Exhibit 3.21.111-9 Valid Treaty Rate by Country - Income Code 50 (Other Income) ONLY
- Exhibit 3.21.111-10 Glossary and Acronyms

Part 3. Submission Processing

Chapter 21. International Returns and Documents Analysis

Section 111. Chapter Three and Chapter Four Withholding Returns

3.21.111 Chapter Three and Chapter Four Withholding Returns

Manual Transmittal

November 15, 2022

Purpose

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

Material Changes

(1) Scope - Removed Scope because it is not an element of the manual transmittal and for IRM consistency.

(2) IRM 3.21.111.1.1(4) - Removed Note regarding actions to take when Return Due Date falls on a weekend.

(3) IRM 3.21.111.1.1(5) - Removed Note regarding actions to take when Return Due Date falls on a weekend.

(4) IRM 3.21.111.1.2(8) - Updated Policy Statements reference to IRM 1.2.1, Servicewide Policies and Authorities - Servicewide Policy Statements.

(5) IRM 3.21.111.1.6 - Changed title to Terms and Acronyms per BMF consistency.

(6) IRM 3.21.111.2.1(1) - Replaced with the approved and negotiated TAS and Chief Counsel TAS Standard Language for IRMs..

(7) IRM 3.21.111.2.1(2) - Updated title of IRM 13.1.19 per BMF consistency.

(8) IRM 3.21.111.2.1(6) - Removed IRM 13.1.7.6 and added new paragraph six with IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, as the reference.

(9) IRM 3.21.111.2.3(5) - Removed paragraph because Form 13653 is obsolete.

(10) IRM 3.21.111.2.3.1 - Removed Subsection because Form 13653 is obsolete.

(11) IRM 3.21.111.3.2.2 - Corrected form name from Form 813-C to Form 813.

(12) IRM 3.21.111.4(5) - Updated year for Prior Year Conversion from 2015 to 2019.

(13) IRM 3.21.111.4.1.7(2) - Added Note that Postal/Zip codes are always the last entry in the address line.

(14) IRM 3.21.111.4.1.7 Table - Changed references from Exhibits to see Document 7475 for guidance on Street Addresses. Also updated instructions for when two street addresses are present.

(15) IRM 3.21.111.4.1.7(5) - Corrected Information by removing Abu Dhabi and adding Gibraltar.

(16) IRM 3.21.111.4.1.13(1)b) - Updated editing instruction if box 7 is checked.

(17) IRM 3.21.111.5.1.7 - Revised Income Code 40 and added new Income Codes 56 and 57 to match Work Request Notification (WRN).

(18) IRM 3.21.111.5.1.27(4) - Changed reference from Exhibit 3.21.111-9 to Job Aid 2324-002, Country Code Chart.

(19) IRM 3.21.111.5.1.29(2) - Changed reference from Exhibit 3.21.111-7 to Document 7475 for street abbreviations.

(20) IRM 3.21.111.5.1.30 Table - Changed references from Exhibits to Document 7475, State Code abbreviations and Job Aid 2324-002 Country Codes.

(21) IRM 3.21.111.5.1.30(4) - Corrected Information by removing Abu Dhabi and adding Gibraltar.

(22) Figure 3.21.111-6 - Changed reference from Exhibit 3.21.111.6 to Document 7475 for State Code abbreviations.

(23) IRM 3.21.111.5.1.32 - Changed reference from Exhibit 3.21.111-9 to Job Aid 2324-002 for valid country codes.

(24) IRM 3.21.111.5.1.33(5) - Changed reference from Exhibits to Document 7475 for street abbreviations and street code abbreviations.

(25) IRM 3.21.111.5.1.33(9) - Corrected Information by removing Abu Dhabi and adding Gibraltar.

(26) IRM 3.21.111.5.1.39 - Added new LOB Code 12 to match Work Request Notification (WRN).

(27) IRM 3.21.111.5.1.41(4) - Added instruction to follow if MMDDYYYY format is incorrect.

(28) Exhibit 3.21.111-5 - Revised Chapter 3 Status Code 08 and added new Chapter 3 Status Code 38 to match Work Request Notification (WRN).

(29) Exhibit 3.21.111-7 - Removed incorrect references in Note.

(30) Removed the following exhibits and replaced with references to Document 7475 and Job Aid 2324-002:

Exhibit 3.21.111-7 - Street Address Abbreviations.
Exhibit 3.21.111-8 - State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones.
Exhibit 3.21.111-9 - Country Code Chart for For Tax Purposes (Form 1042-S).
Exhibit 3.21.111-10 - Foreign Address Format.

(31) Updated graphics to reflect revised tax year 2022.

(32) IRM 3.21.111 - Revised the Internal Revenue Manual (IRM), where necessary for the following types of editorial changes:

Spelling, grammar, punctuation and formatting;
Updated tax periods for current processing;
Updated tax years for current processing;
Updated website addresses, legal references and IRM references as necessary;
Updated Glossary definitions;
Changed the term "Possessions" to "Territories;"
Updated references related to the removed Exhibits.

Effect on Other Documents

IRM 3.21.111, dated November 12, 2021 (effective 01-01-2022), is superseded. No procedural updates were issued.

Audience

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

Effective Date

(01-01-2023)

James L. Fish
Director, Submission Processing
Wage and Investment Division

3.21.111.1 (01-01-2022)

Program Scope and Objectives

Purpose: The Document Perfection Operation, Code and Edit (C&E) Unit, prepares paper returns for processing by reviewing and editing the documents with specialized processing codes for input through the Integrated Submissions and Remittance Processing (ISRP) System.
- In addition, Document Perfection forwards any other documents or attachments not related to the processing of the return, to the proper function.
- Document Perfection is not responsible for the mathematical verification of the return or for checking the validity of the documents being processed.
- The Chapter Three and Chapter Four Withholding database performs math verification, validity, and consistency checks after the returns and other documents are coded and edited, as prescribed in this Section.
Audience: These procedures apply to IRS employees with responsibility for reviewing and editing the Form 1042-T and Form 1042-S information returns in Document Perfection Operation including Supervisory Tax Examining Assistant, Lead Tax Examining Technicians, and Tax Examining Technicians primarily the International team at the Ogden Submission Processing Center.
Policy Owner: The Director Submission Processing is responsible for the policies in this IRM.
Program Owner: The Code and Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing.
Primary Stakeholders: Submission Processing (SP) and Large Business and International (LB&I).
Program Goals: Review and correctly prepare all paper returns for Data Transcription and/or correspondence, as necessary.

3.21.111.1.1 (01-01-2023)

Background

This section of the Internal Revenue Manual (IRM) provides procedures for reviewing and processing:
- Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, Exhibit 3.21.111-1
- Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Exhibit 3.21.111-2
This IRM is designed for use by Ogden Code and Edit Tax Examiners.

Note:

Paper Form 1042-T and Form 1042-S are filed at the Ogden Submission Processing Campus (OSPC) only. Those erroneously filed at other locations will be forwarded to OSPC (Ogden) daily.
This IRM cannot address all issues that may occur while perfecting returns or documents. Take taxpayer intent into consideration and refer issues not addressed in this IRM to the subject matter expert (SME), lead, or manager to determine the proper corrective action.
The Form 1042-T is processed under:
- Program Code: 71700
- File Source: Payor Master File (PMF)
- Tax class: 5
- Master File Transaction (MFT): 88
- Document Code: 01
- Document Locator Number (DLN): 60501ddd000-999 - (OSPC paper only)
- DLN: 29501ddd000–999 (OSPC - filed electronically)
- Return Due Date: March 15, 2023
- Extended Return Due Date: May 15, 2023
The Form 1042-S is processed under:
- Program Code: 71720
- File Source: Information Returns Master File (IRMF)
- Tax Class: 5
- MFT: 12
- Document Code: 02
- DLN: 60502ddd000-999 - OSPC - Paper ONLY
- DLN: 29502ddd000-999 (first 100,000 filed *) - OSPC
- DLN: 81502ddd000-999 (second 100,000 filed *) - OSPC
- DLN: 82502ddd000-999 (third 100,000 filed *) - OSPC
- DLN: 83502ddd000-999 (fourth 100,000 filed *) - OSPC
- DLN: 84502ddd000-999 (fifth 100,000 filed *) - OSPC
- DLN: 85502ddd000-999 (sixth 100,000 filed *) - OSPC
- DLN: 86502ddd000-999 (seventh 100,000 filed *) - OSPC
- DLN: 87502ddd000-999 (eight 100,000 filed *) - OSPC
- DLN: 88502ddd000-999 (ninth 100,000 filed *) - OSPC
  
  Note:
  
  * Indicates files received through Enterprise Computing Center - Martinsburg (ECC-MTB) in one processing day. The DLN will loop if the File Location Code (FLC) is not changed after each 100,000 records found. This DLN's range are the FLCs limited to work processed by the Ogden Submission Processing Campus (OSPC) only. Specific DLNs will be utilized which are unique to Ogden (See list above).
- Return Due Date: March 15, 2023
- Extended Return Due Date: May 15, 2023

3.21.111.1.2 (01-01-2023)

Authority

IRC 1441 through IRC 1464, Chapter Three Withholding (CTW) changes to IRC 1441 and IRC 1442, state, a person that makes a payment of an amount subject to Chapter 3 withholding (for example, U.S. source interest, dividends, royalties, and certain other types of U.S. source income) to a foreign person must deduct and withhold 30 percent from the payment. A lower rate of withholding may apply under the Code, the regulations, or an income tax treaty. Generally, a payor of these types of income must also report the payments on Form 1042-S.
Significant changes were implemented by the regulations under Chapter 3 (IRC 1441 through IRC 1446) and Chapter 61 (IRC 6041 through IRC 6050N) effective January 1, 2001 that resulted in the current Chapter 3 reporting and withholding framework. The current framework, found in the regulations, together with the Qualified Intermediary (QI) agreement in Revenue Procedure 2000-12 (as amended) and the Withholding Foreign Partnership (WP) and Withholding Foreign Trust (WT) agreements in Revenue Procedure 2003-64 (as amended) represented the culmination of a major effort that began in 1992 to revamp the withholding and reporting on payments of U.S. source income to foreign persons.
The regulations under Chapter 3 and Chapter 61 have been revised to coordinate with Chapter 4. In addition, a new QI agreement is published in Revenue Procedure 2017-15, and new WP and WT agreements are published in Revenue Procedure 2017-21.
The regulations require both U.S. and foreign financial institutions to change their tax withholding and information reporting systems.
If a payment is withheld upon under Chapter 4, a withholding agent is not required to withhold under Chapter 3, with respect to such a payment.
For 2014, the Form 1042-S has been modified to accommodate reporting of payments and amounts withheld under the provisions of the Foreign Account Tax Compliance Act (FATCA) or Chapter 4, and Regulations 1.1474-1(d).
Beginning July 1, 2014, FATCA requires a withholding agent to deduct and withhold a tax equal to 30 percent from a withholdable payment made to a foreign financial institution (FFI), unless the FFI agrees to and complies with the terms of an FFI agreement (a participating FFI), is deemed to comply with FATCA (a deemed-compliant FFI), or is treated as an exempt beneficial owner (i.e., entities to which Chapter 4 withholding does not apply). FATCA also requires a withholding agent to deduct and withhold a tax equal to 30 percent from a withholdable payment made to a nonfinancial foreign entity unless such entity provides a certification that it does not have any substantial U.S. owners, provides information regarding its substantial U.S. owners, or an exception to these requirements otherwise applies under the FATCA regulations. See Treas. Reg. 1.1473-1(a) for the definition of withholdable payment, which generally includes, for example, U.S. source dividends, interest, insurance premiums and other payments that may also be amounts subject to Chapter 3 withholding.
Policy statements for Submission Processing are in IRM 1.2.1, Servicewide Policies and Authorities - Servicewide Policy Statements.

3.21.111.1.3 (01-01-2018)

Responsibilities

The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.
The Operations Manager is responsible for monitoring operational performance for their operation.
The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.
The team employees are responsible for following the instructions in this IRM and maintaining updated IRM procedures.

3.21.111.1.4 (01-01-2018)

Program Management and Review

Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors Code and Edit (C&E).
Program Effectiveness: The program goals are measured by the following reviews:
- Embedded Quality Submission Processing (EQSP)
- Balanced Measures
- Managerial Reviews

3.21.111.1.5 (01-01-2021)

Program Objectives and Review

Program Goals: Code and Edit is tasked to review and edit all paper returns timely and correctly.
Program Reports: The Monitoring Section under Submission Processing Program Management /Process Assurance monitors the inventory and timely processing of the returns.
Program Effectiveness: The program goals are measured by the following reviews:
- Embedded Quality Submission Processing (EQSP)
- Balanced Measures
- Managerial reviews
Annual Review: The processes included in this manual are reviewed annually to ensure accuracy and promote consistent tax administration.

3.21.111.1.6 (01-01-2023)

Terms and Acronyms

Acronyms and a glossary of terms can be found in Exhibit 3.21.111-10.

3.21.111.1.7 (01-01-2018)

Related Resources

The following job aids have been developed to assist tax examiners in their work:
- Job Aid 2324-002, Catalog Number 48747C
- Job Aid 2543–702, Catalog Number 49458Q
- Job Aid 2544-702 (ELMS 10878/22104), Catalog Number 49445N

3.21.111.2 (01-01-2022)

IRS Employee Contacts Section 3705(a)

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998, (RRA 98) Section 3705(a), gives identification requirements for all IRS employees working tax related matters.
All IRS employees who communicate by telephone, face-to-face, or any other method of correspondence, with taxpayers or their personal representatives on tax related matters, must give (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. Toll-free employees may also give their location for identification purposes. Treat faxes to taxpayers on tax-related matters as correspondence and include required information.
2. Face-to-Face Contact: Their title (e.g., Mr., Mrs., Ms., Miss), give as appropriate during the conversation, their last name and their badge identification (ID card) number.
3. Correspondence (sent to taxpayer and authorized representatives)- A telephone number that taxpayer's can call for answers to questions. In addition, manually generated correspondence must have the employees title (e.g., Mr., Mrs., Ms., Miss), last name, and Integrated Data Retrieval System (IDRS) number, and letter system number which are systemically generated by IDRS. Treat faxes to taxpayers on tax-related matters as correspondence and include the required information.
4. Correspondex letters: specific employee name and telephone number if the employee initiating the correspondence is in the best position to respond to any questions the taxpayer may have or if the taxpayer is being asked to give more case-related information. If the taxpayer does not need to contact a specific employee, the correspondence needs only an IRS telephone number and standard signature.
When a taxpayer requests to speak with a specific employee who previously worked their inquiry or request, or complains about the level of service previously given, make every attempt to resolve the taxpayers inquiry.
Secretaries, receptionists, or other people who answer the telephone in functional offices need to identify themselves and should give their badge identification (ID Card) number only if they are answering telephones routinely used to give tax or account information.
It is not necessary to repeat badge identification (ID Card) number on a subsequent contact, when the nature of an employee’s work involves multiple contacts with the same taxpayer and the employee has given the taxpayer (either by telephone or in-person) his or her badge identification (ID Card) number on the first contact.

3.21.111.2.1 (01-01-2023)

♦Taxpayer Advocate Service (TAS)♦

The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS), led by the National Taxpayer Advocate. Its job is to protect taxpayers’ rights by striving to ensure that every taxpayer is treated fairly and knows and understands their rights under the Taxpayer Bill of Rights (TBOR). TAS offers free help to taxpayers, including when taxpayers face financial difficulties due to an IRS problem, when they are unable to resolve tax problems they haven’t been able to resolve on their own, or when they need assistance to address an IRS system, process, or procedure that is not functioning as it should. TAS has at least one taxpayer advocate office located in every state, the District of Columbia, and Puerto Rico.
TAS uses Form 12412 , Operations Assistance Request (OAR), to start the OAR process of referring a case to the Wage and Investment (W&I) Division, to affect the resolution of the taxpayer’s problem. For more information, refer to IRM 13.1.19 , Tax Advocate Service, Taxpayer Advocate Case Procedures, Advocating With Operations Assistance Requests (OARs).
Refer taxpayers to TAS when the contact meets TAS criteria (see IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria) or when Form 911, Request for Taxpayer Advocate Service Assistance (and Application for Taxpayer Assistance Order), is attached, and steps cannot be taken to resolve the taxpayer’s issue the same day.
The definition of "same day resolution" is within 24 hours. The following two situations meet the definition of "same day resolution" :
- The issue can be resolved within 24 hours.
- IRS takes steps within 24 hours to resolve the taxpayer’s issue.
When making a TAS referral, use Form 911, and forward to TAS following your local procedures.
See IRM 13.1.7, Taxpayer Advocate Service (TAS) Case Criteria, for more information.

3.21.111.2.2 (01-01-2021)

Correspondence Imaging Systems (CIS) Returns

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.
CIS returns are shown with "CIS Image... Do not correspond for Signature" stamped below the signature line or annotated on the front of the document.
Accounts Management must ensure CIS returns are complete for processing. If the CIS return is incomplete, void the DLN and return to AM to secure any missing information.

Note:

Do not correspond for missing information on CIS returns.

3.21.111.2.3 (01-01-2023)

Correspondence Action

Correspondence includes all written communication from a taxpayer or their representative, excluding tax returns, whether solicited or unsolicited, and includes:
- Responses to IRS requests for information or data,
- requests for information, including that which may go with tax returns,
- annotated notice responses, or
- other correspondence providing more information or disputing a notice.
Completely examine the form to ensure that all conditions requiring correspondence can be included in the same letter. The taxpayer should not be subjected to repeated contact for missing data. However, if you fail to get all the data the first time, and there is no way to properly process the form without it, you must not penalize the taxpayer for the oversight made by IRS. Instead, write the taxpayer a letter of apology and secure the data.

Note:

For more information on Correspondence, see IRM 3.0.273, Administrative Reference Guide.
Start correspondence with a 1791C Letter, U.S. Annual Return Of Income Paid at Source Incomplete for Processing Form 1042, where applicable, unless other instructions are given in the IRM.
Code and Edit will correspond on unnumbered documents when the withholding agent has submitted a Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, as a transmittal document for Form 1042-S.

3.21.111.3 (01-01-2022)

General Processing Procedures

General - Enter all edit marks with an erasable, red pen. Never obliterate the original entry on a document when deleting or correcting an entry. Make sure the original entry remains legible.

Only edit items that will be transcribed, except where the instructions require editing of a non-transcribed item. The following criteria must also be considered when editing a document:

A zero, dash, or none must be considered as a significant entry unless otherwise specified for the particular line item.
If a money amount must be entered, edit the field in dollars only. When there is no clear separation between dollars and cents, edit a vertical line between dollars and cents (i.e., If the amount was entered as $510.75, edit to $510|75).

Note:

If any dollar amounts are reflected in foreign currency (i.e., Pound Sterling, Euro Dollars, Lira, etc.), return to the withholding agent advising them to submit all monetary information in U.S. dollars.
Edit any misplaced or illegible transcription entry to the proper transcription line (T-Line). A carefully edited arrow (or double arrow) may be used if it will leave no room for doubt as to where the entry belongs.

Note:

The entry may have to be computed from other figures on the return or attachment.
Delete any misplaced or extraneous information from T-Line(s).
If numeric line items have alpha characters, convert to numeric (i.e., line has "One," Tax Examiner (TE) should delete the entry and enter "1" ).
All entry fields should reflect positive amounts (Entry fields should never show negative amounts). Delete any negative entry.

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.

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

Note:

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

Note:

Follow no-reply procedures until further notice.
Prior year forms will be edited to the current year format. All forms that are nine years prior to the current year will be accepted. All other prior year forms will be destroyed by following procedures for Classified Waste (CW).
If two different Form 1042-S are printed on the same piece of paper (one printed on the front page and a different one on the back page), or two on a single page, photocopy and cross out the original(s). Each Form 1042-S must be processed individually and have its own DLN.

3.21.111.3.1 (01-01-2021)

Types of Edit Marks

The tax examiner will use the following types of edit marks:
1. "X" to the left of an entry -The "X" indicates to the terminal operator that the item to the right of the "X" should not be transcribed but rather the edited entry should be transcribed. The "X" is the preferred marking on returns. A / can be used when deleting a form or schedule not being transcribed.
2. Circled entry -This edit mark indicates to the terminal operator that the entry should not be transcribed. If the taxpayer circles an entry, edit the amount circled.
  
  Note:
  
  Generally, an "X" is used on tax data entries and a circle is used on entity data.
3. Underlined entry -This edit mark is a signal to the terminal operator to transcribe the item.
4. Arrow -This edit mark shows a misplaced entry. Use the arrow if the taxpayer misplaced an item that is close to the correct line and there is no room for doubt as to where the entry belongs. A double arrow may be used if the same figure is to be transcribed in two different places provided local management has established that ISRP will transcribe the data in both places as well as any required transcription data between the two arrows.

3.21.111.3.2 (01-01-2021)

Document Controls

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

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

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

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

Note:

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

3.21.111.3.2.1 (01-01-2015)

Document Locator Number (DLN)

Document Locator Number (DLN):

The DLN is the basic identification number assigned to each document processed by the ADP.
This number is assigned when the document is blocked and brought under Accounting Control.
It will be used to locate the document as long as it (or a substitute document) remains in the files.

The parts of the DLN are:

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

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

3.21.111.3.2.2 (01-01-2023)

Verification of Numbered Blocks of Returns

On numbered blocks, compare the first return in the block to the Form 813, Document Register, or Form 1332, Block and Selection Record.

If	Then
The documents have not been blocked, Note: All documents in a block or a batch must be of the same type.	Notify the manager of the discrepancy and follow local Submission Processing Campus procedures for correction.

The type of document is determined by a specific Tax Class and Document Code,

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

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

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

If Then
Multiple DLNs are present, Circle the incorrect DLN. The correct DLN can be determined from Form 813 or Form 1332.

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

If	Then
Multiple DLNs are present,	Circle the incorrect DLN. The correct DLN can be determined from Form 813 or Form 1332.

3.21.111.3.3 (01-01-2018)

♦IRM Deviation Procedures♦

Submit IRM deviations in writing, following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevate through proper channels for executive approval.

3.21.111.4 (01-01-2023)

Form 1042-T, Annual Summary and Transmittal of Forms 1042-S - General Information

Form 1042-T is used to transmit Copy A of paper Form 1042-S. There are sixteen different types of Form 1042-S that may be filed:
- Chapter 4, original, pro rata
- Chapter 4, original, non-pro rata
- Chapter 4, amended, pro rata
- Chapter 4, amended, non-pro rata
- Chapter 4, original, non-pro rata, partnership
- Chapter 4, amended, non-pro rata, partnership
- Chapter 4, original, pro rata, partnership
- Chapter 4, amended, pro rata partnership
- Chapter 3, original, pro rata
- Chapter 3, original, non-pro rata
- Chapter 3, amended, pro rata
- Chapter 3, amended, non-pro rata
- Chapter 3, original, non-pro rata, partnership
- Chapter 3, amended, non-pro rata, partnership
- Chapter 3, original pro rata partnership
- Chapter 3, amended, pro rata, partnership
Form 1042-T is to be filed by the withholding agent responsible for reporting U.S. Source Income to Foreign Person's on Form 1042-S.
Because sixteen different types of Forms 1042-S can be filed, one Form 1042-T must be submitted for each type of paper Form 1042-S attached. Confirm the type of Form 1042-T indicated matches the type indicated on each of the associated Form(s) 1042-S. (Example: If Form 1042-S, Amended Box is checked, the Form 1042-T, Line 1b, Amended Box must be checked).
Withholding agents who file 250 or more Forms 1042-S, and all financial institutions (regardless of number of forms filed) must file electronically. Penalties will be issued by Compliance when Submission Processing receives and processes over 250 paper Form 1042-S.
See Training Job Aid 2544-702 (ELMS 10878/22104) for Prior Year Conversion for tax years 2010-2013, and 2014 - 2019..
Form 1042-T and the attached Form(s) 1042-S will be batched and forwarded to Code and Edit.
Form 1042-T and Form 1042-S will be edited and envelopes will be destroyed by following classified waste (CW) procedures. The entire batch will be forwarded to numbering.
Numbering will stamp the 1042-T unique DLN in the upper right corner of Form 1042-T.
The Form 1042-T DLN will be entered on each associated Form 1042-S in the lower left-hand corner.
The Form 1042-S unique DLN will be placed in the upper right corner of Form 1042-S.
Numbering will forward Form 1042-T and Form 1042-S to ISRP.
Form 1042-T must be processed through ISRP before Form 1042-S.
DO NOT process any Form 1042-T filed without corresponding Form(s) 1042-S Copy A. Form 1042-T should be destroyed, per local procedures, if no Form(s) 1042-S Copy A are attached.

Note:

See IRM 3.21.111.5, paragraphs (4) and (5), for instructions when Form 1042-S is received with no corresponding Form 1042-T.

3.21.111.4.1 (01-01-2021)

Form 1042-T, Line by Line Editing

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

3.21.111.4.1.1 (01-01-2022)

Tax Year

The period for which the withholding agent is submitting the Form 1042-T.

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

Note:

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

Note:

If filer has used a prior year form revision, correct all line numbers to conform with current year format. (Unless there are no entries on the lines or taxpayer indicates N/A).

3.21.111.4.1.2 (01-01-2020)

Received Date

Shows the received date of the Form 1042-T.
1. This is an eight-position field that must be present.
2. Only numeric characters (0-9) are valid.
3. The date must be in MMDDYYYY format.
4. The date must be edited below the signature area if there is no stamped received date.
If Then
Missing, incomplete, or illegible, Research document or attachments for the Received Date and edit.
If the received date is not stamped on the Form 1042-T, determine the date in the following order of priority:
1. The earliest legible postmark date on the envelope.
2. Service Center Automated Mail Processing System (SCAMPS) date.
3. The Revenue Officer's date of signature.
4. The taxpayer's date of signature.
5. The DLN Julian Date.
6. The current date minus 10 days.
7. For certified mail, if a postmark is not present, look for a USPS.com Track & Confirm record attached to the return. Use the acceptance date on the record to determine timeliness and follow normal editing procedures. If the USPS.com Track & Confirm record is not attached, no action is required.

If	Then
Missing, incomplete, or illegible,	Research document or attachments for the Received Date and edit.

3.21.111.4.1.3 (01-01-2019)

Line 1a - Chapter Three and Chapter Four Indicator

Shows the type of Form 1042-T and corresponding Form(s) 1042-S that the agent is filing.
This is a one-position field.

The only valid characters are 3 or 4.

If	Then
If Line 1a is blank and only the Chapter Three Status Code field has an entry,	Edit a 3 in Line 1a Note: Forms for 2015 and prior, edit a 3 at the top center of Form 1042–T.
If Line 1a is blank and only the Chapter Four Status Code field has an entry,	Edit a 4 in Line 1a. Note: Forms for 2015 and prior, edit a 4 at the top center of Form 1042–T.
If Line 1a is blank and neither Status Codes fields has an entry,	Research the attached 1042-S forms to verify if Line 3 has an entry and edit appropriately. Note: Forms for 2015 and prior, edit a 3 or a 4 at the top center of Form 1042–T.
If Line 1a is blank and both Status Code fields have entries,	Only one field can be checked, research the attached Form(s) 1042-S to verify if Line 3 has 3 or 4. Separate the Chapter 3 and Chapter 4 Form(s) 1042-S and create another Form 1042-T for the Chapter 4 filings. These will be recorded on a spreadsheet given to you by the HQ analyst. Note: Forms for 2015 and prior, edit a 3 or a 4 at the top center of Form 1042–T.

Note:

Forms for 2013 and prior will always be Chapter 3, and there are no Chapter 3 or Chapter 4 Status Code fields. If a prior year revision is used to file a current year form, research the attached Form(s)1042-S to verify if boxes 3 or 4 are checked. Edit a 3 or 4 at the top center of Form 1042-T.

3.21.111.4.1.4 (01-01-2019)

Chapter 3 and Chapter 4 Status Codes

Shows the status of the withholding agent under Chapter 3 and Chapter 4.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid.
Forms for 2013 and prior will always be Chapter 3.
If unable to determine the correct code from attached documents, continue processing. If other than numeric, "X" out.

Note:

See Exhibit 3.21.111-5 for Chapter 3 Status Codes and Exhibit 3.21.111-6 for Chapter 4 Status Codes for illegible characters only.

3.21.111.4.1.5 (01-01-2019)

Employer Identification Number (EIN) - Withholding Agent

This is a nine-position field.

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

If	Then
Employer Identification Number (EIN) is missing, invalid, incomplete or illegible, or Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is present,	Circle the incorrect entry. Research associated Form(s) 1042-S Box 12a to find Withholding Agent EIN. If found, edit the valid EIN to the left of the incorrect taxpayer entry. If not found, continue processing.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.21.111.4.1.6 (01-01-2020)

Withholding Agent Name Line

Withholding Agent Name Line - Shows the Withholding Agent Name as established when filing EIN, QI-EIN, WP-EIN, or WT-EIN. This field consists of three line entries.
1. This field consists of 40 characters for each line (Name Line 1, Name Line 2 and Name Line 3).
Valid characters for name and address fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)
Note:

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

Figure 3.21.111-1

This figure shows the 2022 Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, and illustrates name line editing.

Please click here for the text description of the image.

3.21.111.4.1.7 (01-01-2023)

Withholding Agent's Address

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

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

Note:

The Postal/Zip codes are always the last entry in the address line.

Field	Length
Street Line 1 - Required field that shows the address of record for the withholding agent. The address must consist of number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Document 7475 for guidance on Street Address Abbreviations. Note: If both a street address and a PO Box are present for a domestic address, circle out PO Box. Note: If two street addresses are present: Circle out the first street address, Underline the second address.	40
City - Required field which shows the city or town (or other locality name) of the withholding agent. This field is also used to indicate Army Post Office (APO), Fleet Post Office (FPO) or Diplomatic Post Office (DPO). Enter APO/FPO/DPO in this field, if applicable.	40
State (Code) - Required field if withholding agent has a domestic address. If the state name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code. See Document 7475 for guidance on State Code abbreviations. Note: If not a U.S. state, territory, or APO/FPO/DPO address, no State Code will be present.	2
Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two-character code from the Province Code table above the name of the Province. See Exhibit 3.21.111-7, for Canadian Province Codes.	2
Country (Code) - Required field if withholding agent has a foreign address. Edit the two-character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Figure 3.21.111-2 for Country Code editing procedures. Note: Territories APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient and a Country Code or U.S. is present, do not edit the entry.	2
Foreign Postal/Zip Code - Shows the foreign or domestic zip code for the withholding agent. See Document 7475 for foreign address editing. Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for more information on Zip Code ranges. Note: The Zip/Postal Code will always be the last entry in the address line.	5-9

Arrow data to the correct position in the series, (i.e., City, Province, Country, Foreign Postal Code).
If any of these fields are missing, perfect from attached documents.
If foreign address and country name is Gibraltar, Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City, edit the country name in the city field position and country code in the country name position.

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

Note:

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

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

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

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

Figure 3.21.111-2

Please click here for the text description of the image.

3.21.111.4.1.8 (01-01-2019)

Line 1b - Original or Amended Checkbox

This is a one-position numeric field that must be blank or 1.
Edit a 1 to the left of the Amended box if it is checked, otherwise, leave blank.

3.21.111.4.1.9 (01-01-2021)

Pro-rata Basis Reporting Checkbox - Line 1c

Pro-rata Reporting - Shows whether the withholding agent is reporting pro-rata withholding on attached Form(s) 1042-S.
If the withholding agent checked the box under Line 1c, edit a "1" to the right of the checkbox on Line 1c.

3.21.111.4.1.10 (01-01-2021)

Number of Paper Forms 1042–S - Dotted Line 1d

This is a five-position numeric field that must be present.
Withholding agents are required to specify the number of paper Form 1042-S they submit via Form 1042-T.
Count the number of paper Forms 1042-S attached to Form 1042-T. If the number on Line 1d is incorrect, edit the correct amount.

Note:

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

Reminder:

Only Copy A is valid for processing. Destroy Copies B, C, D and E per classified waste procedures.

3.21.111.4.1.11 (11-20-2020)

Partnership Withholding in Subsequent Year - Checkbox Line 1e

This is a one-position field that may or may not be checked.
Withholding agents must specify if partnership withholding occurred in subsequent year.
If the withholding agent checked box on Line 1e, edit a 1 to the right of the checkbox, otherwise no editing is required.

3.21.111.4.1.12 (01-01-2015)

Total Gross Income, Line 2

Gross Income - Line 2 - Shows gross income as a total from all associated Form 1042-S. Gross income is the starting point for computing net income and tax withheld.
1. This is a 15-position numeric field that must be present.
2. All amounts must be positive. If editing amount, edit in whole dollars only.
3. If Line 2 is blank (or zero), determine the entry as follows: calculate the Gross Income Paid total by adding the Box 2 amount from each of the attached Form 1042-S.

3.21.111.4.1.13 (01-01-2023)

Total Federal Tax Withheld - Lines 3a and 3b

Shows the Federal Tax withheld from all associated Form 1042-S for either Chapter 4 or Chapter 3.

These are 15-position numeric fields that must be present.

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

If	Then
Both are filled in,	Create a Form 1042-T for the Chapter 4 withholding. Separate the attached Form 1042-S forms according to Chapter 3 or Chapter 4. There will be a Form 1042-T for the Chapter 3 Form 1042-S and a Form 1042-T for all the Chapter 4 Form 1042-S. These will be recorded on a spreadsheet given to you by the HQ analyst.
Form 1042-T, Line 3a is blank, and should have an entry,	Calculate the total of Federal Tax Withheld from Boxes 10 and 11 on all attached Chapter Four declared Form 1042-S attached. Line 3 on Form 1042-S will have a 4.
Form 1042-T, Line 3b is blank, and should have an entry,	Calculate the total Federal Tax Withheld from Boxes 10 and 11 on all attached Chapter 3 declared Form(s) 1042-S attached. Line 3 on Form 1042-S will have a 3.
Form 1042-T, Lines 3a and 3b, and Form 1042-S, Box 7a are blank,	Edit a 1 to the left of box 7 if it is checked, otherwise, leave blank.
All amounts are blank on the attached form 1042-S documents	Take to your lead or manager to contact the HQ analyst.

3.21.111.4.1.14 (01-01-2019)

Final Return Checkbox

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

3.21.111.4.1.15 (01-01-2015)

Signature Area

The withholding agent should sign in the space provided below the perjury statement.
Facsimile signature submitted as a rubber stamp, mechanical device, or computer software program is acceptable.
Do not question any signature on the return.
Presume that the signature on the return, statement or document is the true signature of the person who actually signed the document.

Note:

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

3.21.111.4.2 (01-01-2015)

Preparation of Form 1042-T for Transcription and Routing of Associated Form 1042-S

Edit Form 1042-T and attached Form(s) 1042-S.

3.21.111.5 (01-01-2021)

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

Form 1042-S data can be filed on paper if there are fewer than 250 income recipients for which data must be reported. However, all financial institutions (regardless of number of forms filed) are required to file electronically. See IRM 3.21.111.4.(4)
Due to the addition of IRC 1471 through IRC 1474 and the regulations under those sections, Form 1042-S has been completely revised. Form 1042-S is a five part document with a copy for the Internal Revenue Service, the withholding agent and three copies for the recipient.
Copy A of the Form 1042-S, for each recipient, should be filed with the Form 1042-T. If multiple copies (Copies B, C, D, and/or E) have been filed, along with Copy A, for a recipient, process ONLY Copy A. Delete all other copies, for that recipient, by lining though each copy.

Note:

If a Form 1042-S (Copies B, C, D, and/or E) is received from a recipient requesting a refund of taxes withheld, refer to lead. Form 1042-S must be returned to the recipient with instructions to file a Form 1040-NR with the Austin Campus.
If Copy A of Form 1042-S is received without a corresponding Form 1042-T, create a dummy Form 1042-T.

Note:

Prepare only one Form 1042-T for all the IRS Commissioners issued paper Forms 1042-S, Copy A. In addition, the withholding agents address on the IRS Commissioners Form 1042-S will vary from form to form and perhaps even the Form 1042-T because of the many IRS offices that contribute to the IRS Commissioners Form 1042. See IRM 3.17.79, Accounting Refund Transactions, for more information on Accounting refund practices for Chapter Three Withholding.
If only Copy B, C, D, and/or E, is received, do not process. Follow procedures for Classified Waste (CW).
Form 1042-S indicates the amount of U.S. income tax,
- which was withheld at source, and
- which can be claimed by the recipient as a credit against tax liability on Form 990-PF, Form 990-T, Form 1040-NR, Form 1041, Form 1120-F, Form 1120-FSC, Form 1040-NR Trust/Estate, Form 1042 or Form 8804.
Any gross income from U.S. sources that is not effectively connected with the conduct of trade or business in the U.S. is taxed at 30 percent or a lower treaty rate.
Income effectively connected with the conduct of trade or business in the U.S. (foreign corporations engaged in a trade or business in the U.S.) is taxed at either:
1. Regular corporate rates, or
2. Graduated individual rates.
Form 1042-S must be filed even if income was paid but was exempt from withholding.
The tax data extracted from Form 1042-S processing is exchanged with foreign countries with which the U.S. has a tax treaty or exchange of information agreement using Form OECD (Organization for Economic Cooperation and Development).
For those Form 1042-S that are filed electronically, all money fields are reported in dollars only. However, for those Form 1042-S that are filed on paper, money fields can be reported in dollars only or dollars and cents. If a money amount must be entered, edit the field in dollars. When there is no clear separation between dollars and cents, edit a vertical line between dollars and cents (i.e., If the amount was entered as $510.75, edit to $510|75)
If you receive a prior year Form 1042-S you must edit Form 1042-S to conform with the current tax year line numbering sequence (Training Job Aid 2544-702 (ELMS 10878/22104)). If unable to edit, prepare a dummy Form 1042-S using the current year form.

3.21.111.5.1 (01-01-2015)

Form 1042-S Editing

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

3.21.111.5.1.1 (01-01-2019)

Tax Year

Shows the tax period for which the withholding agent is submitting the Form 1042-S.

This is a four-position field that must be present.

Only numeric characters are valid.

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

3.21.111.5.1.2 (01-01-2022)

Received Date

Shows the received date of Form 1042-S.

This is an eight-position field that must be present.
Only numeric characters (0-9) are valid.
The date must be in MMDDYYYY format.

The date must be edited to the bottom right corner.

Note:

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

If	Then
Missing, incomplete, illegible, or unable to determine,	Research document or attachments for the received date and edit.
Two Form 1042-S documents are on one page,	Photocopy each document to its own page and cross out the original. Edit received date to the bottom right hand corner.

3.21.111.5.1.3 (01-01-2021)

Cross Reference DLN

Shows the DLN of the Form 1042-T transmitting record associated with this Form 1042-S. This field is in the bottom left corner of paper Form 1042-S. On electronically filed records the cross-reference DLN is computer generated.
1. This is a 14-position field that must be present.
2. If missing from paper filed Form 1042-S, research other Form 1042-S within multi-pack to locate Withholding Agent DLN and edit.
  
  Note:
  
  If not found, continue processing.

3.21.111.5.1.4 (01-01-2019)

Unique Form Identifier (UFI)

Withholding agents must assign a unique identifying number to each Form 1042-S they file.
This is a 10-position numeric field where valid values are 0-9.
If less than 10 digits are present, completely blank, or clearly has non-numeric values on paper filed Form 1042-S, continue processing.

3.21.111.5.1.5 (01-01-2019)

Amended Checkbox

Shows the type of 1042-S forms being submitted. The forms have been amended from the original.
This is a one-position numeric field that may be blank or 1.
Edit a 1 to the left of the Amended box if it is checked, otherwise, leave blank.

3.21.111.5.1.6 (01-01-2019)

Amendment Number

Withholding agents filing an amended form must indicate the amendment number (using "1" for the first amendment and increasing sequentially for each subsequent amendment).
This is a one-position numeric field that may or may not be present.
Blank and numeric characters 1-9 are valid.

3.21.111.5.1.7 (01-01-2023)

Income Code, Box 1

Shows the type of income paid to the recipient, see Figure 3.21.111-3, Income Code, Box 1.

This is a two-position field.

Blanks and numeric characters are valid.

Note:

If only one character is present, precede it with a zero. You may also research the document to determine if the income type is present elsewhere on the document. If an explanation of income type is provided, determine the correct code from the table below:

Income Code	Definition
01	Interest paid by U.S. obligors - general
02	Interest paid 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, software, broadcasting, endorsement payments)
13	Royalties paid on certain publicly offered securities
14	Real property income and natural resources royalties
15	Pensions, annuities, alimony, and/or insurance premiums
16	Scholarship or fellowship grants
17	Compensation for independent personal services
18	Compensation for dependent personal services
19	Compensation for teaching
20	Compensation during studying and training
22	Interest paid on deposit with a foreign branch of a domestic corporation or partnership
23	Other income
24	Qualified investment entity (QIE) distributions of capital gains
25	Trust distributions subject to IRC 1445
26	Unsevered growing crops and timber distributions by a trust subject to IRC 1445
27	Publicly traded partnership distributions subject to IRC 1446
28	Gambling winnings
29	Deposit interest
30	Original issue discount (OID)
31	Short-term OID
32	Notional principal 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 877A(d)(1)
39	Distributions from a nongrantor trust subject to IRC 877A(f)(1)
40	Other dividend equivalents under IRC 871(m)
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
44	Specified Federal procurement payments
50	Income previously reported under escrow procedure
51	Interest paid on certain actively traded or publicly offered securities
52	Dividends paid on certain actively traded or publicly offered securities
53	Substitute payments-dividends from certain actively traded or publicly offered securities
54	Substitute payments-interest from certain actively traded or publicly offered securities
55	Taxable death benefits on life insurance contracts
56	Dividend equivalents under IRC 871(m) as a result of applying the combined transaction rules
57	Amount realized under IRC 1446(f)

Correspond if the withholding agent is reporting more than one income code on Form 1042-S. If contact is not possible or there is no reply, delete all income codes but the first.

Exception:

If a Form 1042-S is received from a recipient with a statement attached with a breakdown of amounts related to each specific income code. Create copies to be processed using the following steps:
- Perfect the income code information to reflect the code not left on the original Form 1042-S. Perfect the rest of the copy and add it to the back of the pack.
- Edit the "Number of paper Forms 1042-S attached" on the Form 1042-T to reflect the other copies added to the batch.
- Process the Form 1042-T and the copies of Form 1042-S.
Note:

Follow no-reply procedures until further notice.

Figure 3.21.111-3

This figure shows the 2022 Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, and illustrates the proper editing for Box 1, Income Code. The Income Code 1 was entered by the filer as a single-digit. The tax examiner edited a zero in front of the filer's entry to make the Income Code a two-digit number.

Please click here for the text description of the image.

3.21.111.5.1.8 (01-01-2021)

Gross Income, Box 2

Shows the total gross income paid to the recipient.
- This is a 12-position field.
- Only numeric characters (0-9) are valid. No periods.
- Enter amount in whole dollars only.
- If the gross income is less than $1.00 but more than zero, edit 1.
- If the gross income is negative, X the entry, and edit 1.
- If the gross income is omitted, take no action and continue processing.

3.21.111.5.1.9 (01-01-2021)

Chapter Three or Four Indicator, Box 3

Shows the agent is filing a Chapter 3 or Chapter 4 Form 1042-S.
This is a one-position field.
This field should have a 3 or a 4 only.
If neither a 3 or a 4 is present, and there is no entry in Box 7a, Federal Tax Withheld, edit a 3 next to this field. See Figure 3.21.111-4. If there is an entry in Box 7a, use the Chapter 4 tax rate box (box 4b) to determine the correct entry. If box 4b is less than 30 percent (30, 30.00, 3000), zero, or blank, edit a 3 next to this field. If box 4b is 30 percent (30, 30.00, 3000), edit a 4 next to this field.
If both a 3 and a 4 are present, research the Chapter 4 Tax rate box (box 4b) to determine the correct entry. If box 4b is less than 30 percent (30, 30.00, 3000), zero, or blank, edit a 3 next to it. Circle out the 4. If box 4b is 30 percent (30, 30.00, 3000), edit a 4 next to it. Circle out the 3.
If both a 3 and a 4 are present, and you are unable to determine which chapter, please see your lead or manager. They will contact the HQ analyst for further instructions.

Note:

Forms for 2013 and prior will always be Chapter 3, and there are no Chapter Three or Four checkboxes. Therefore, edit 1/3 just above the form name. If a prior year revision is used to file a current year form, edit 1/3 for Chapter Three or edit 1/4 for Chapter Four. (See Training Job Aid 2544-702 (ELMS 10878/22104)).

Figure 3.21.111-4

The graphic shows the top part of a tax year 2022 Form 1042-S, boxes 1 through 7b and boxes 13e through 13l. Box 1 - The number 42 is edited in this box.Box 2 - The number 11000 is edited in this box.Box 3 - The number 3 is edited in this box.Box 3b - The number 3000 is edited in this box.Box 6 - The number 11000 is edited in this box.Box 13f - The number 25 is edited in this box.All other boxes are blank.

Please click here for the text description of the image.

3.21.111.5.1.10 (01-01-2022)

Chapter 3 Exemption Code, Box 3a

Shows when agent is applying an exemption from Chapter 3 withholding.
This is a two-position field.
Only numeric characters (0-9) or blanks are valid.
May be filled in if Chapter 4 Checkbox is marked.

If only one-digit is present, use the chart below as part of your research to determine the two-digit code. If unable to determine, keep processing.

Code	Chapter 3 Exemption Codes
01	Effectively connected income
02	Exempt under IRC
03	Income is not from U.S. sources
04	Exempt under tax treaty
05	Portfolio interest exempt under an IRC
06	QI that assumes primary withholding responsibility
07	WFP or WFT
08	U.S. branch treated as a U.S. person
09	Territory FI treated as U.S. Person
10	QI represents that income is exempt
11	QSL that assumes primary withholding responsibility
12	Payee subjected to Chapter 4 withholding
22	QDD that assumes primary withholding responsibility
23	Exempt under IRC 897(l)
24	Exempt under IRC 892

3.21.111.5.1.11 (01-01-2018)

Chapter 4 Exemption Code, Box 4a

Shows when the agent is applying an exemption from Chapter 4 withholding.
This is a two-position field.
Only numeric characters (0-9) or blanks are valid.
May be filled in if Chapter 3 Checkbox is marked.

If only one-digit is present, use the chart below as part of your research to determine the two-digit code. If unable to determine, keep processing.

Code	Chapter 4 Exemption Codes
13	Grandfathered payment
14	Effectively connected income
15	Payee not subject to chapter 4 withholding
16	Excluded nonfinancial payment
17	Foreign Entity that assumes primary withholding responsibility
18	U.S. Payees—of participating FFI or registered deemed-compliant FFI
19	Exempt from withholding under IGA
20	Dormant account
21	Other-payment not subject to chapter 4 withholding

3.21.111.5.1.12 (01-01-2020)

Chapter 3 and Chapter 4 Tax Rates, Boxes 3b and 4b

Shows the tax rate percentage applicable for the income reported.
This is a four-position field.

Only numeric characters (0-9) or blanks are valid.

Chapter Three Tax Rate Table

Tax Rate	Tax Rate	Tax Rate
00.00	10.00	25.00
02.00	12.00	27.50
04.00	12.50	28.00
04.90	14.00	30.00
04.95	15.00	35.00 (Prior to January 1, 2018)
05.00	17.50	37.00 (After January 1, 2018)
07.00	20.00	39.60 (Prior to January 1, 2018)
08.00	21.00 (After January 1, 2018)

The Chapter 4 Tax Rate is 30 percent. If another rate is entered, continue processing.

Use the table below to edit both Tax Rate boxes into the correct format.

If	Then
Percent sign ("%" ) is entered or the word "percent" is present	Circle out "%" sign or the word "percent" (i.e., 15%, circle "%" and edit 1500).
The tax rate is spelled out	Convert to a numeric value. (i.e., Fifteen Percent, "X" entry and edit 1500).
Only one-digit is present,	Refer to tax rate table and edit (i.e., 5% or 5, edit 0500).
Only two digits are present,	Refer to tax rate table and edit (i.e., 14% or 14, edit 1400).
If 0, 00 or 000 is present, or blank	Continue processing.

3.21.111.5.1.13 (01-01-2020)

Withholding Allowances, Box 5

Shows the amount a withholding agent is paying to a recipient that is not taxable with respect to certain services and scholarship income.
- This is a 12-position field that may or may not be present.
- Enter amount in whole dollars only.

3.21.111.5.1.14 (01-01-2020)

Net Income, Box 6

Shows the result of Gross Income, Box 2, less Withholding Allowances, Box 5.
- This is a 12-position field that may or may not be present.
- Enter amount in whole dollars only.

Only numeric characters (0-9) or blanks are valid. No periods.

If	And	Then
Box 6, Net Income equals, Box 2, Gross Income,		Take no action.
Box 6, Net Income is blank, zero (0), dash, or none,	Box 5, Withholding Allowances has an amount present,	Edit the difference between Box 2, Gross Income and Box 5, Withholding Allowances, in Box 6, Net Income.
Box 6, Net Income is present and differs from Box 2, Gross Income,	Box 5, Withholding Allowances is blank,	Subtract Box 6, Net Income from Box 2, Gross Income, and edit result in Box 5, Withholding Allowances. See Figure 3.21.111–5.
Box 6, Net Income is present and differs from Box 2, Gross Income,	Box 5, Withholding Allowances is greater than Box 2 or Box 6,	Take no action.

Figure 3.21.111-5

Please click here for the text description of the image.

3.21.111.5.1.15 (01-01-2017)

Federal Tax Withheld, Box 7a

Shows amount of U.S. tax withheld.
This is a 12-position field that may or may not be present.
Only numeric characters (0-9) are valid. No periods.
Enter amount in whole dollars only.

3.21.111.5.1.16 (01-01-2018)

Tax Withheld Not Deposited Was Not Deposited Because Escrow Procedures Were Applied, Box 7b

This is a one-position field that may or may not be checked.
Edit a 1 to the left of the checkbox if it is checked, otherwise, leave blank.

3.21.111.5.1.17 (01-01-2021)

Check If Withholding Occurred In Subsequent Year With Respect To A Partnership, Box 7c

This is a one-position field that may or may not be checked.
Edit a 1 to the left of the checkbox if it is checked, otherwise, leave blank.

3.21.111.5.1.18 (01-01-2015)

Tax Withheld by Other Agents, Box 8

Shows 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 field that may or may not be present.
Only numeric characters (0-9) are valid. No periods.
Enter amount in whole dollars only.

3.21.111.5.1.19 (01-01-2021)

Overwithheld tax repaid to recipient pursuant to adjustment procedures, Box 9

Shows an overwithheld tax amount the withholding agent repaid to the recipient during the year following the calendar year of the withholding. The withholding agent will reimburse itself by either 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, or by reducing the amount it would have been required to withhold on a subsequent payment made to that recipient.
This is a 12-position field that may or may not be present.
Only numeric characters (0-9) are valid. No periods.
Enter amount in whole dollars only.

3.21.111.5.1.20 (04-22-2019)

Total Withholding Credit, Box 10

Shows the total amount of tax withheld by withholding agents.
This is a 12-position field.
Only numeric characters (0-9) are valid. No periods.
Enter amount in whole dollars only.
If blank, zero (0), dash, or none, and an entry appears in box 7a, 8, or 9, compute by adding the amounts from boxes 7a and 8, and subtracting from box 9. Enter the total in box 10. If only a single entry appears in either line 7a or 8 then double arrow the amount to line 10. Cross out zero, dash or none, if present.

3.21.111.5.1.21 (01-01-2019)

Tax Paid by Withholding Agent, Box 11

Shows the tax paid by the withholding agent from its own funds rather than through withholding from the payment to the recipient.
This is a 12-position field that may or may not be present.
Only numeric characters (0-9) are valid. No periods.
Enter amount in whole dollars only.

3.21.111.5.1.22 (01-01-2019)

Withholding Agent's EIN, Box 12a

Shows the Employer Identification Number (EIN) of the Withholding Agent, or the QI-EIN, WP-EIN, or WT-EIN of the QI, WP, or WT. Qualified Intermediary's EINs will be in the range of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.
This is a nine-position field.

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

If	Then
EIN is missing, incomplete or illegible, or SSN or ITIN is present,	Circle the incorrect entry. Research associated Form 1042-T and Form 1042-S to find Withholding Agent EIN. If found, edit the valid EIN to the left of the incorrect taxpayer entry. If not found, continue processing.
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡	≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

3.21.111.5.1.23 (01-01-2019)

Withholding Agent's Chapter 3 Status Code, Box 12b

Shows the type of withholding Agent for Chapter 3 purposes.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid.
If taxpayer enters a single-digit, use Exhibit 3.21.111-5 for Chapter 3 Status Codes as research to determine the two-digit code. If unable to determine, keep processing.
If other than numeric, X out.

3.21.111.5.1.24 (01-01-2019)

Withholding Agent's Chapter 4 Status Code, Box 12c

Shows the type of withholding Agent for Chapter 4 purposes.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid.
If taxpayer enters a single digit, use Exhibit 3.21.111-6 for Chapter 4 Status Codes as research to determine the two-digit code. If unable to determine, keep processing.
If other than numeric, X out.

3.21.111.5.1.25 (01-01-2018)

Withholding Agent's Name, Box 12d

Shows the Withholding Agent's Name as established when filing for the EIN or QI EIN. This field consists of three line entries.
1. This field consists of 40 characters for each line. (Name Line 1, Name Line 2 and Name Line 3).
Valid characters for name fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)
  
  Note:
  
  The percent (%) sign is used to identify in care of and is valid in the first position only.
If blank or illegible, research the associated Form 1042-T and Form 1042-S for the Withholding Agent’s name. If found, edit the correct name. If not found, continue processing.

3.21.111.5.1.26 (01-01-2016)

Withholding Agent's Global Intermediary Identification Number (GIIN), Box 12e

The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.
This is a 19-position field.
May be blank, alpha, numeric and include periods.

3.21.111.5.1.27 (01-01-2023)

Withholding Agent's Country Code, Box 12f

The country where the withholding agent is located.
This is a two-position field.
Must contain alphas.
If blank, use the correct country code from the agent's address. See Job Aid 2324-002 Country Code chart for correct country codes.
If the Withholding Agent has a domestic address, the Country Code should be US. If a Country Code, or US, is present, leave the entry as is.

3.21.111.5.1.28 (01-01-2016)

Withholding Agent's Foreign Taxpayer Identification Number, Box 12g

The Foreign Tax ID number issued to the withholding agent.
This is a 22-position field.
Valid characters are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)

3.21.111.5.1.29 (01-01-2023)

Withholding Agent's Address Boxes, 12h and 12i

The withholding agent's street address is a required field.
The address must consist of a number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). Refer to Document 7475 for Street Abbreviations.

Note:

If both a street address and the PO Box are present for a domestic address, circle out PO Box.
This is a 40-position field.
Valid characters for address fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for more information on Zip Code ranges.
Invalid characters not on the list should be edited out.
If missing or illegible, perfect from attachments.

3.21.111.5.1.30 (01-01-2023)

Withholding Agent's City or Town, Province or State, Country, ZIP or Foreign Postal Code, Box 12i

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

The table below lists the field lengths:

Field	Length
City - Required field which shows the city or town (or another locality name) of the withholding agent. Enter APO/FPO/DPO in this field, if applicable.	40
State (Code) - Required field if withholding agent has a domestic address. If the state name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code. See Document 7475 for State Code abbreviations. See Figure 3.21.111-6 for State Code editing. Note: If not a U.S. state, territory, or APO/FPO/DPO address, then no State Code will be present.	2
Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two-character code from the Province Code table above the name of the Province. See Exhibit 3.21.111-7, for Canadian Province Codes.	2
Country (Code) - Required field if withholding agent has a foreign address. Edit the two-character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Job Aid 2324-002 for Country Code Table for editing entity/address. See Figure 3.21.111-7 for Country Code editing procedures. Note: Territories, APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient, and a Country Code, or U.S., is present, do not edit the entry.	2
Foreign Postal/Zip Code - Shows the foreign postal or domestic zip code for the withholding agent. Note: The Zip/Postal Codes are always the last entry in the address line.	5-9

Arrow data to the correct position in the series.
If any of these fields are missing, perfect from attached documents.
If foreign address and country name is Gibraltar, , Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City, edit the country name in the city field position and country code in the country name position.

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

Note:

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

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

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

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

Figure 3.21.111-6

Please click here for the text description of the image.

3.21.111.5.1.31 (01-01-2017)

Recipient Name, Box 13a

Shows the Recipient's Name. This field is required and consists of up to three line entries.
This field consists of 40-characters for each line (Name Line 1, Name Line 2 and Name Line 3).
Valid characters for name fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)
  
  Note:
  
  The percent (%) sign is used to identify in care of and is valid in the first position only.

3.21.111.5.1.32 (01-01-2023)

Recipient's Country Code, Box 13b

Shows the recipient's country code of residence for which the tax treaty benefits are based.

Note:

Job Aid 2324-002 has a list of valid country codes.
This is a two-position field.

Only alpha characters (A-Z) are valid.

If	Then
Box 13b is Blank,	Leave blank and continue processing.
No entry in Box 13d,	Leave blank and continue processing.
Box 13b has US	Leave as is and continue processing.

3.21.111.5.1.33 (01-01-2023)

Recipient Address, Boxes 13c and 13d

Shows the recipients address of record.
This field consists of entries which identify street, city or town, state, province (if applicable), country (if applicable) and zip or foreign postal code. Recipient’s address will not be completed when recipient is Unknown or a Withholding Rate Pool.
Valid characters for address fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
Invalid characters that are not on the list should be edited out.

The table below lists the field lengths:

Field	Length
Street Line 1 - Required field that shows the address of record for the recipient. The address must consist of number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Document 7475 for guidance on Street Abbreviations. Note: If both Street address and PO Box present for a domestic address, circle out PO Box.	40
City - Required field which shows the city or town (or another locality name) of the Recipient. Enter APO/FPO/DPO in this field, if applicable.	40
State (Code) - Required field if Recipient has a domestic address. If the state name is spelled out, do not edit the two-digit state code. ISRP will enter the two-digit state code. See Document 7475 for State Code abbreviations. Note: If not a U.S. State, Territory or APO/FPO/DPO address, no state code will be present.	2
Province (Code) - Required field if the Recipient's address is in Canada. Only enter a Province Code when the country is Canada. Edit the two-character code from the Province Code table above the name of the Province. See Exhibit 3.21.111-7, for Canadian Province Codes.	2
Country (Code) - Required field if Recipient has a foreign address. Edit the two-character code from the Country Code table above the name of the Country. See Job Aid 2324-002 for editing entity/address information. See Document 7475 for Country Code editing procedures. If Box 13d is blank, and the Country Code cannot be determined, leave blank and continue processing. Note: Territories, APO, FPO and DPO are not considered as foreign addresses. If a domestic address is present for the recipient, and a Country Code or U.S. is present, do not edit the entry.	2
Foreign Postal/Zip Code - Shows the foreign or domestic zip code for the Recipient. Note: The Zip/Postal Codes are always the last entry in the address line.	5-9

Valid characters for the Postal/Zip Code field can be Alpha (A-Z), or Numeric (0-9), and may include a hyphen (-). See Job Aid 2543–702 for more information on Zip Code ranges.
Arrow data to the correct position in the series.
If any of these fields are missing, then perfect from attached documents.
If foreign address and country name is Gibraltar, Hong Kong, Luxembourg, Malta, Mexico, Monaco, San Marino, Singapore, Panama (City) or Vatican City, edit the country name in the city field position and country code in the country name position.

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

Note:

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

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

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

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

If a domestic address has been entered for the recipient in box 13d, and the Country Code is blank, leave blank and continue processing.

Figure 3.21.111-7

This figure shows a 2022 Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, and illustrates proper editing when the filer has entered a country name in an address field. The filer entered Sweden in Box 13d. The tax examiner used the Country Code Chart for editing entity/address information (Exhibit 3.21.111–8) to find the correct two-digit code, circled out Sweden and edited the Country Code SW, in the slash/slash/$ format. The tax examiner arrowed the Postal Code to the correct position (behind the Country Code). The tax examiner also perfected the Tax Rate to a four-digit number.

Please click here for the text description of the image.

3.21.111.5.1.34 (01-01-2021)

Recipient's U.S. Taxpayer Identification Number (TIN), Box 13e

Shows Recipient's U.S. Taxpayer Identification Number.
This is a nine-position field that may or may not be present.
Only numeric characters are valid.
The Recipient's TIN can be a Social Security Number (SSN) or an IRS Individual Taxpayer Identification Number (ITIN).
The Recipient's TIN cannot be the same as the Withholding Agent's EIN, Box 12a. If the same number is present in box 13e, delete the entry.
If the entry is more or less than nine digits, delete the entry.

3.21.111.5.1.35 (01-01-2021)

Recipient's Chapter 3 Status Code, Box 13f

Shows the type of recipient for the Chapter 3 income being reported by the withholding agent.
This is a two-position field.
Only numeric characters are valid.
If only one character is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ).

Note:

See Exhibit 3.21.111-5 for a list of valid Chapter 3 Status Codes and Figure 3.21.111-8 for Chapter 3 Status Code editing.
For 2013 and prior, the Recipient's Status Code was for Chapter 3 Withholding. The box was labeled Recipient Code.
If the Recipient Status Code is missing, limited research may be initiated to determine if the recipient type is present elsewhere on the document:
1. Research the recipient name line, if able to identify recipient type, determine the correct code.
2. If an explanation of recipient type is provided, determine the correct code.
3. If Recipient Status Code cannot be determined, continue processing.
Figure 3.21.111-8

This figure shows the 2022 Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, and illustrates the proper coding when Box 13f, Recipient's Chapter 3 Status Code, is blank. The filer has not entered a Recipient Code in Box 13f. The tax examiner edited a 3 for the Chapter 3 indicator on Line 3 and 16 for the Recipients Status Code on Line 13f. The tax examiner also perfected the Tax Rate to a four-digit number. The tax examiner used the Country Code Chart for editing entity/address information (Exhibit 3.21.111–8) to find the correct two-digit code, circled out Australia and edited the Country Code AS, in the slash/slash/$ format and arrowed to the correct position (before the Postal Code).

Please click here for the text description of the image.

3.21.111.5.1.36 (01-01-2019)

Recipient's Chapter 4 Status Code, Box 13g

Shows the type of recipient for the Chapter 4 income being reported by the withholding agent.
This is a two-position field.
Only numeric characters are valid.

Note:

See Exhibit 3.21.111-6 for a list of valid Chapter 4 Status Codes.
If only one digit is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ).
If the Recipient Code is missing, limited research may be initiated to determine if the recipient type is present elsewhere on the document:
1. Research the recipient name line, if able to identify recipient type, determine the correct code.
2. If an explanation of recipient type is provided, determine the correct code.
3. If Recipient Code cannot be determined, continue processing.

3.21.111.5.1.37 (01-01-2017)

Recipient's GIIN, Box 13h

The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.
This is a 19-position field.
May be blank, alpha, numeric and have periods.

3.21.111.5.1.38 (01-01-2017)

Recipient's Foreign Tax Identifying Number, if any, Box 13i

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/or numeric characters are valid.

3.21.111.5.1.39 (01-01-2023)

LOB Code, Box 13j

Withholding agents withholding at a reduced rate based on a treaty claim by an entity will include a limitation on benefits code (LOB code).
This is a two-position field that may be present.
Numeric characters are valid.

If only one digit is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ).

LOB Code	LOB Treaty Category
02	Government – contracting state/political subdivision/local authority
03	Tax exempt pension trust/Pension fund
04	Tax exempt/Charitable organization
05	Publicly-traded corporation
06	Subsidiary of publicly-traded corporation
07	Company that meets the ownership and base erosion test
08	Company that meets the derivative benefits test
09	Company with an item of income that meets the active trade or business test
10	Discretionary determination
11	Other
12	No LOB article in treaty

3.21.111.5.1.40 (01-01-2017)

Recipient's Account Number, Box 13k

Recipient's Account Number is assigned by the withholding agent and is used to identify the recipient's account.
This is a 20-position field that may or may not be present.
Any character present is valid.
No editing is required.

3.21.111.5.1.41 (01-01-2023)

Recipient's Date of Birth, Box 13l

The date of birth of the recipient.
This is an eight-position field.
May be blank, or have numeric values only.
Must be in MMDDYYYY format. If date is entered incorrectly, circle out and edit to the right in correct format.

3.21.111.5.1.42 (01-01-2017)

Primary Withholding Agent's Name, Box 14a

Provides information regarding a withholding agent, other than the withholding agent reported on line 12d, that withheld and deposited tax with respect to the income reported.
This field consists of 40 characters.
Valid characters for name fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)

3.21.111.5.1.43 (01-01-2019)

Primary Withholding Agent's EIN, Box 14b

The EIN of the agent the amounts withheld are reported.
This is a nine-position, all numeric field.

3.21.111.5.1.44 (01-01-2021)

Pro-rata Basis Reporting Checkbox, Box 15

Shows pro-rata basis reporting.
This is a one-position numeric field that must be blank or 1.
Edit a 1 to the left of the Pro-Rata Basis Reporting box if it is checked, otherwise, leave blank.

3.21.111.5.1.45 (01-01-2019)

Intermediary or Flow-through Entity's EIN, Box 15a

The EIN of the intermediary or flow-through entity.
This is a nine-position, all numeric field.

3.21.111.5.1.46 (01-01-2019)

Intermediary Chapter 3 Status Code, Box 15b

Shows the type of intermediary for the Chapter 3 income being reported by the withholding agent.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid.
If only one character is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ).

Note:

See Exhibit 3.21.111-5 for a list of valid Chapter 3 Status Codes.
If the Intermediary Status Code is missing, limited research may be initiated to determine if the intermediary type is present elsewhere on the document:
1. Research the intermediary name line, if able to identify intermediary type, determine the correct code.
2. If an explanation of intermediary type is provided, determine the correct code.
3. If Intermediary Status Code cannot be determined, continue processing.

3.21.111.5.1.47 (01-01-2019)

Intermediary Chapter 4 Status Code, Box 15c

Shows the type of intermediary for the Chapter 4 income being reported by the withholding agent.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid.

Note:

See Exhibit 3.21.111-6 for a list of valid Chapter 4 Status Codes.
If only one digit is present, edit a leading zero for transcription purposes (i.e., if "5" has been entered, change it to "05" ).
If the Intermediary Code is missing, limited research may be initiated to determine if the intermediary type is present elsewhere on the document:
1. Research the intermediary name line, if able to identify intermediary type, determine the correct code.
2. If an explanation of intermediary type is provided, determine the correct code.
3. If Intermediary Code cannot be determined, continue processing.

3.21.111.5.1.48 (01-01-2017)

Intermediary or Flow-through Entity's Name, Box 15d

An intermediary is a person that acts as a custodian, broker, nominee, or otherwise as an agent for another person, regardless of whether that other person is the beneficial owner of the amount paid, a flow-through entity, or another intermediary.
A flow-through entity is a legal entity where income "flows through" to investors or owners; that is, the income of the entity is treated as the income of the investors or owners.
This field consists of 40 characters for each line (Name Line 1, Name Line 2 and Name Line 3).
Valid characters for name fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)

3.21.111.5.1.49 (01-01-2017)

Intermediary or Flow-through Entity's GIIN, Box 15e

The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.
This is a 19-position field.
May be blank, alpha, numeric and have periods.

3.21.111.5.1.50 (01-01-2019)

Intermediary or Flow-through Entity's Country Code, Box 15f

The country where the intermediary or flow-through entity is located.
This is a two-position field.
If blank, leave blank.
If the Withholding Agent has a domestic address, the Country Code should be blank. If a Country Code, or U.S., is present, leave the entry as is.

3.21.111.5.1.51 (01-01-2017)

Intermediary or Flow-through Entity's Foreign Tax Identification Number, Box 15g

This is a 22-position field.
Valid characters are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)

3.21.111.5.1.52 (01-01-2018)

Intermediary's or Flow-Through Entity's name and Address, Boxes 15d, 15h, and 15i

Shows the name, address and TIN of an Intermediary or flow-through Entity.
This is a 40-position field.
Follow editing instructions found in IRM 3.21.111.5.1.33.

3.21.111.5.1.53 (01-01-2017)

Payer's Name, Box 16a

A payer is the person for whom the withholding agent acts as an authorized agent and agrees to withhold and report a payment.
This is a 40-position field.
Valid characters for name fields are:
- Alpha (A-Z)
- Numeric (0-9)
- Blank
- Ampersand (&)
- Hyphen (-)
- Slash (/)
- Period (.)
- Comma (,)
- Apostrophe (')
- Pound (#)
- Percent (%)
  
  Note:
  
  The percent (%) sign is used to identify in care of and is valid in the first position only.

3.21.111.5.1.54 (01-01-2019)

Payer's TIN, Box 16b

The payer's taxpayer identification number.
This is a nine-position field.
May be blank or have numeric values only.

3.21.111.5.1.55 (01-01-2017)

Payer's GIIN, Box 16c

The payer's Global Intermediary Identification Number (GIIN) used to report Chapter 4 withholding.
This is a 19-position field.
May be blank, alpha, numeric and have periods.

3.21.111.5.1.56 (01-01-2019)

Payer's Chapter 3 Status Code, Box 16d

Shows the payer type for Chapter 3 purposes.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid. See Exhibit 3.21.111-5 for Chapter 3 Status Codes.
If taxpayer enters a single digit, use Exhibit 3.21.111-5 for Chapter 3 Status Codes as research to determine the two-digit code. If unable to determine, keep processing.
If other than numeric, X out.

3.21.111.5.1.57 (01-01-2019)

Payer's Chapter 4 Status Code, Box 16e

Shows the payer type for Chapter 4 purposes.
This is a two-position field.
Only numeric characters (0-9) and blanks are valid. See Exhibit 3.21.111-6 for Chapter 4 Status Codes.
If taxpayer enters a single digit, use Exhibit 3.21.111-6 for Chapter 4 Status Codes as research to determine the two-digit code. If unable to determine, keep processing.
If other than numeric, X out.

3.21.111.5.1.58 (01-01-2019)

State Income Tax Withheld, Box 17a

The tax withheld for state income tax purposes.
This is a 12-position field.
May be blank or have numeric values only. No periods.
Accept the whole dollar amount and ignore the cents.

3.21.111.5.1.59 (01-01-2017)

Payer’s State Tax No., Box 17b

The number assigned by the state for reporting withholding.
This is a 10-digit field.
May be blank or have numeric values only.

3.21.111.5.1.60 (01-01-2019)

Name of State, Box 17c

The name of the state that the tax was withheld.
This is a two-position field.
May be blank or have alphas only.

Exhibit 3.21.111-1

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

Form 1042-T Exhibit This is an Image: 38622100.gif

Please click here for the text description of the image.

Exhibit 3.21.111-2

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

Form 1042-S Exhibit This is an Image: 38622101.gif

Please click here for the text description of the image.

Exhibit 3.21.111-3

Form 1042-T Transcription Lines

Form 1042-T with transcription lines This is an Image: 38622102.gif

Please click here for the text description of the image.

Exhibit 3.21.111-4

Form 1042-S Transcription Lines

Form 1042-S with transcription lines This is an Image: 38622103.gif

Please click here for the text description of the image.

Exhibit 3.21.111-5

Chapter 3 Status Codes

Chapter 3 Status Code	Definition
03	Territory FI treated as U.S. Person
04	Territory FI – not treated as U.S. Person
05	U.S. branch – treated as U.S. Person
06	U.S. branch – not treated as U.S. Person
07	U.S. branch - ECI presumption applied
08	Partnership other than Withholding Foreign Partnership or Publicly Traded Partnership
09	Withholding Foreign Partnership
10	Trust other than Withholding Foreign Trust
11	Withholding Foreign Trust
12	Qualified intermediary
13	Qualified Securities Lender—Qualified Intermediary
14	Qualified Securities Lender—Other
15	Corporation
16	Individual
17	Estate
18	Private Foundation
19	International Organization
20	Tax Exempt Organization (Section 501(c) entities)
21	Unknown Recipient Note: If Recipient Code is Unknown Recipient, Recipient Name Line 1 must equal "Unknown,"
22	Artist or Athlete
23	Pension
24	Foreign Central Bank of Issue
25	Nonqualified Intermediary
26	Hybrid entity making Treaty Claim
35	Qualified Derivatives Dealer
36	Foreign Government - Integral Part
37	Foreign Government - Controlled Entity
38	Publicly Traded Partnership

Code	Pooled Reporting for Chapter 3
27	Withholding Rate Pool – General
28	Withholding Rate Pool – Exempt Organization
29	PAI Withholding Rate Pool – General
30	PAI Withholding Rate Pool – Exempt Organization
31	Agency Withholding Rate Pool – General
32	Agency Withholding Rate Pool – Exempt Organization

Exhibit 3.21.111-6

Chapter 4 Status Codes

Chapter 4 Status Code	Definition
01	U.S. Withholding Agent – FI
02	U.S. Withholding Agent – Other
03	Territory FI - not treated as U.S. Person
04	Territory FI - treated as U.S. Person
05	Participating FFI – Other
06	Participating FFI – Reporting Model 2 FFI
07	Registered Deemed-Compliant FFI – Reporting Model 1 FFI
08	Registered Deemed-Compliant FFI – Sponsored Entity
09	Registered Deemed-Compliant FFI – Other
10	Certified Deemed-Compliant FFI – Other
11	Certified Deemed-Compliant FFI – FFI with Low Value Accounts
12	Certified Deemed-Compliant FFI – Non-Registering Local Bank
13	Certified Deemed-Compliant FFI – Sponsored Entity
14	Certified Deemed-Compliant FFI – Investment Entity that does not maintain financial accounts
15	Nonparticipating FFI
16	Owner-Documented FFI
17	U.S. Branch – treated as U.S. person
18	U.S. Branch – not treated as U.S. person (reporting under IRC 1471)
19	Passive NFFE identifying Substantial U.S. Owners
20	Passive NFFE with no Substantial U.S. Owners
21	Publicly Traded NFFE or Affiliate of Publicly Traded NFFE
22	Active NFFE
23	Individual
24	Section 501(c) Entities
25	Excepted Territory NFFE
26	Excepted NFFE – Other
27	Exempt Beneficial Owner
28	Entity Wholly Owned By Exempt Beneficial Owners
29	Unknown Recipient
30	Recalcitrant Account Holder
31	Nonreporting IGA FFI
32	Direct reporting NFFE
33	U.S. reportable account
34	Non–consenting U.S. account
35	Sponsored direct reporting NFFE
36	Excepted Inter-affiliate FFI
37	Undocumented Preexisting Obligation
38	U.S. Branch - ECI presumption applied
39	Account Holder of Excluded Financial Account
40	Passive NFFE reported by FFI
41	NFFE subject to 1472 withholding
50	U.S. Withholding Agent—Foreign branch of FI

Code	Pooled Reporting for Chapter 4
42	Recalcitrant Pool – No U.S. Indicia
43	Recalcitrant Pool – U.S. Indicia
44	Recalcitrant Pool – Dormant Account
45	Recalcitrant Pool – U.S. Persons
46	Recalcitrant Pool – Passive NFFEs
47	Nonparticipating FFI Pool
48	U.S. Payees Pool
49	QI-Recalcitrant Pool - General

Exhibit 3.21.111-7

Canadian Province Codes

Canadian Province Code Exhibit

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

Note:

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

Exhibit 3.21.111-8

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

Treaty rate by country (Income Code other than 50) Exhibit

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

Exhibit 3.21.111-9

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

Treaty rate by country (Income Code 50) Exhibit

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

Exhibit 3.21.111-10

Glossary and Acronyms

Glossary

GLOSSARY	DEFINITION
ACTION CODES	Numeric codes edited in the bottom center margin of a return to reject documents and identify the reason the document has been rejected.
ACTION TRAIL	A notation in the lower left side margin on page 1 of a return which indicates or explains an action taken.
AMENDED RETURN	A return that changes information submitted on a previously filed return.
AUDIT CODE	An alpha character edited in the right bottom margin of a return to identify a specific condition for the Examination Operation.
BATCH	A group of blocks of documents. A batch cannot have more than 20 blocks.
BLOCK	A group of up to 100 documents with consecutive DLNs having the same block number (digits 9 through 11 of the DLN). (A block cannot have more than 100 documents since the documents are numbered from 00 to 99.)
BUSINESS MASTER FILE (BMF)	A magnetic tape file having information about taxpayers filing business returns and related documents.
CALENDAR YEAR	A tax year that begins January 1 and ends on December 31.
CENTRALIZED AUTHORIZATION FILE (CAF)	Computerized system of records which houses authorization information from Powers of Attorney (POAs), Tax Information Authorizations (TIAs) and state tax returns. The CAF system has two types of records: Taxpayer records Representative records
CHECK DIGITS	Two alpha characters used to identify the tax account.
CODING	Placing symbols that have specific meanings on returns. These codes direct the computer to perform certain programmed functions.
COMPUTER CONDITION CODE (CCC)	A single alpha or numeric character edited on a return which either shows a special condition or directs the computer to take a specific programmed action. CCCs are posted to the Master File.
CORRESPONDENCE ACTION SHEETS	Forms used to request information from the taxpayer. Some are mailed to the taxpayer with the return; others generate a letter.
CURRENT YEAR RETURN	For processing in 2023, a Current Year Return is a return filed for tax year 2022.
DATA	All information reported or coded on forms, schedules, and attachments.
DELINQUENT RETURN	A return filed after the due date without an approved extension.
DOCUMENT LOCATOR NUMBER	A fourteen-digit number assigned to every return and document input through the Automatic Data Processing (ADP) system.
DUMMYING	The act of transferring information provided by the taxpayer onto a required transcribed form/schedule.
EDITING	Preparing returns and attachments for data entry or other transcription processes by correcting entries and entering edit marks.
EMPLOYER IDENTIFICATION NUMBER (EIN)	A nine-digit number that shows the account of a business taxpayer on the Business Master File.
ENTRY	Any type of mark entered by, or edited for, the taxpayer.
ERROR RESOLUTION SYSTEM (ERS)	A system for the examination and correction of returns rejected due to taxpayer and processing errors.
FISCAL YEAR	A tax year which ends on a date other than December 31.
FORM	An IRS document identified by a number, e.g., Form 1040.
FRIVOLOUS FILER/NON-FILER	Filers and non-filers who use certain types of tax avoidance arguments which are not supported by law.
HARDSHIP	A sign of severe consequences for a taxpayer caused by the normal application of IRS regulations and procedures. Although a determination of hardship is highly subjective, the work leader must be consulted if a particular situation may be considered for referral to the Taxpayer Advocate Service (TAS).
INDIVIDUAL MASTER FILE (IMF)	A magnetic tape file having information about taxpayers filing individual income tax returns and related documents.
INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER (ITIN)	A unique nine-digit number assigned by the IRS to individuals who must file a U.S. tax return or are listed as a spouse or a dependent and who do not have and cannot obtain a valid Social Security Number. Taxpayers obtain an ITIN by filing a Form W-7.
INTEGRATED DATA RETRIEVAL SYSTEM	A system that enables employees in the area/territory offices and the campuses to have visual access to certain computer-based information in taxpayer accounts.
INTEGRATED SUBMISSION AND REMITTANCE PROCESSING SYSTEM (ISRP)	A computerized system which converts paper tax and information documents and remittances received by IRS into perfected electronic records of taxpayer data.
INTERNATIONAL RETURN	A return on which income is excluded or not reported because of revenues from, payments to, or residence in a foreign country.
JULIAN DATE	A calendar date expressed as the number of days since the beginning of the year. For example, February 1 is Julian Date 032.
JURAT	The perjury statement required in the signature area of a tax return, form, or schedule.
MASTER FILE	A magnetic tape record which has taxpayer accounts.
NAME CONTROL	The first four characters of the taxpayer's surname. Also used for dependents, qualifying children, child care providers, etc.
NON-RESIDENT ALIEN (NRA)	An alien individual (not a U.S. citizen), who does not meet either the green card test or the substantial presence test for the calendar year.
PERFECTING	Making returns acceptable for data entry through editing procedures.
PIPELINE	The areas in the IRS Submission Processing Campus that process a return from the time it is received until the data from the return is entered to an account in the IRS' main computer. These areas include Receipt and Control, Code and Edit, Data Conversion, Error Resolution, Rejects, and Unpostables.
POWER OF ATTORNEY (POA)	A form authorizing a representative to perform certain acts on the taxpayer's behalf.
PREPARER TAX IDENTIFICATION NUMBER (PTIN)	Preparer tax identification number.
PRIMARY TAXPAYER	The taxpayer who is listed first on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
PRIMARY TAXPAYER IDENTIFICATION NUMBER (P-TIN)	The TIN associated with the taxpayer who is listed first on the name line of the caption.

PRIOR YEAR RETURN	A return for a tax period prior to the current tax year.
PROCESSABLE RETURN	A return which meets all the requirements for ISRP input.
RECEIVED DATE	Date a return was received by the IRS. If the date is unknown and a Received Date is required, there is a prescribed formula for determining the date to edit as the Received Date. (Required on Amended, Fiscal Year, Short Year, Prior Year, and Delinquent Returns.)
RE-INPUT DOCUMENT	A document that did not post to the Master File when originally entered and is now being entered again with a Form 3893, Re-Entry Document Control.
RETURN	A legal document used by the taxpayer to report income, deductions, and tax liability.
RETURN DUE DATE	The date in which the return is due to the Internal Revenue Service.
RETURN PROCESSING CODE (RPC)	A single character edited on a return to direct the computer to take specific actions in processing the return. This code does not post to the Master File.
SCHEDULE	An IRS document identified by alpha characters or numbers (e.g., Schedule B, Schedule 8812).
SECONDARY TAXPAYER	The taxpayer who is listed second on the name line caption of a joint return, regardless of whether that taxpayer is male or female.
SECONDARY TAXPAYER IDENTIFICATION NUMBER	The TIN associated with the taxpayer whose name appears second on a joint return.
SIGNIFICANT ENTRY	Any positive or negative number or dollar amount other than zero.
SOCIAL SECURITY NUMBER	A nine-digit number identifying the account of an individual on the Individual Master File.
STATUTE RETURN	A return filed for a Tax Period more than three years prior to the current Tax Period.
SUFFIX	Information added at the end of a word, phrase, or series of numbers. For instance, a title may be edited as a suffix to a name as in James Canary, Exec.
TAX EXAMINER (TE) STAMP	A rubber stamp with a unique identifying number of the Code and Edit tax examiner working the return.
TAX PERIOD	The time covered by a particular return represented by the year and month in which the period ends. For example, 202112 stands for the tax year ending December 31, 2021.
TAXPAYER ADVOCATE SERVICE (TAS)	An independent organization within the IRS whose employees assist taxpayers experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe than an IRS system or procedure is not working as it should.
TAXPAYER IDENTIFICATION NUMBER (TIN)	A nine-digit number which shows the account of an individual or business taxpayer. The TIN may be a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN) or an Employer Identification number (EIN).
THIRD PARTY DESIGNEE	Person given permission by the taxpayer to discuss their current year return processing issues with the IRS.
TRANSACTION CODE (TC)	A three-digit numeric code defining the precise nature of an action posted to the Master File.
TRANSCRIPTION	The process of transferring information from documents to a computer-readable form. Also called data conversion, input, and entry.
UNPOSTABLES	Data which cannot be entered successfully to an account at the Martinsburg Computing Center (MCC) and is returned to the Campus for corrective action.
UNPROCESSABLE	A document which cannot be perfected for the ADP system, usually because of incomplete information.

Acronym

ACRONYM	DEFINITION
AKA	Also Known As
AP	Approved Paragraph
APO	Army Post Office
ASED	Assessment Statute Expiration Date
AUSPC	Austin Submission Processing Campus
AWS	Alternative Work Schedule
BMF	Business Master File
BOB	Block Out of Balance
CAF	Centralized Authorization File
CAS	Correspondence Action Sheet
CCC	Computer Condition Code
CPA	Certified Public Accountant
CY	Calendar Year
DECD	Deceased
DLN	Document Locator Number
EIN	Employer Identification Number
ELF	Electronic Filing
ERS	Error Resolution System
EXEC	Executor
FMV	Fair Market Value
FPO	Fleet Post Office
FRP	Frivolous Return Program
FTD	Federal Tax Deposit
FTF	Failure to File
FTP	Failure to Pay
FY	Fiscal Year
IDRS	Integrated Data Retrieval System
IDT	Identity Theft
IMF	Individual Master File
IRC	Internal Revenue Code
IRM	Internal Revenue Manual
IRP	Information Returns Processing
IRS	Internal Revenue Service
ISRP	Integrated Submission and Remittance Processing System
ITIN	Individual Taxpayer Identification Number
IVO	Integrity and Verification Operation
KCSP	Kansas City Submission Processing Campus
MCC	Martinsburg Computing Center
MeF	Modernized e-File
MFT	Master File Transaction
NCOA	National Change of Address
NO	National Office
NR	No Record
NRA	Non-Resident Alien
OSPC	Ogden Submission Processing Campus
PAO	Process As Original
PCD	Program Completion Date
PER REP	Personal Representative
POA	Power of Attorney
PPR	Personal Property Rental Payment Plan Request
P-TIN	Preparer Tax Identification Number
PREP TIN (PTIN)	Preparer Tax Identification Number
PY	Prior Year
RICS	Return Integrity and Compliance Services
RPC	Returns Processing Code
RTN	Routing Transit Number
SERP	Servicewide Electronic Research Program
SPC	Special Processing Code Submission Processing Center
SFR	Substitute for Return
SSN	Social Security Number
TAS	Taxpayer Advocate Service
TC	Transaction Code
TE	Tax Examiner
TIN	Taxpayer Identification Number
TP	Taxpayer
TR	Trustee
TY	Tax Year
USPS	United States Postal Service

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Part 3. Submission Processing

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3.21.111 Chapter Three and Chapter Four Withholding Returns

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Correspondence Action

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Types of Edit Marks

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Document Controls

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Form 1042-T, Annual Summary and Transmittal of Forms 1042-S - General Information

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Form 1042-T, Line by Line Editing

Tax Year

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Received Date

Line 1a - Chapter Three and Chapter Four Indicator

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Chapter 3 and Chapter 4 Status Codes

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Employer Identification Number (EIN) - Withholding Agent

Withholding Agent Name Line

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Withholding Agent's Address

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Line 1b - Original or Amended Checkbox

Pro-rata Basis Reporting Checkbox - Line 1c

Number of Paper Forms 1042–S - Dotted Line 1d

Note:

Reminder:

Partnership Withholding in Subsequent Year - Checkbox Line 1e

Total Gross Income, Line 2

Total Federal Tax Withheld - Lines 3a and 3b

Final Return Checkbox

Signature Area

Note:

Preparation of Form 1042-T for Transcription and Routing of Associated Form 1042-S

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