3.21.111 Chapter Three Withholding Returns

Manual Transmittal

November 09, 2018

Purpose

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

Scope

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

Material Changes

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

(2) IRM 3.21.111.1.1(4,5) - Updated due dates for tax year 2018.

(3) IRM 3.21.111.2(2)(j) - Removed the word “aforementioned”.

(4) IRM 3.21.111.2.3.1(1) - Removed “all of” and replaced with “all”.

(5) IRM 3.21.111.2.3(5) - Removed “below” to avoid confusion.

(6) IRM 3.21.111.3(1) - Corrected the word “insure” with ensure”.

(7) IRM 3.21.111.4.1.2(1)(a) - Replaced ”8” with ”eight”, added hyphen.

(8) IRM 3.21.111.4.1.3(2) - Replaced ”1” with ”one”, added hyphen.

(9) IRM 3.21.111.4.1.4(2) - Replaced ”2” with ”two”, added hyphen.

(10) IRM 3.21.111.4.1.5(1) - Replaced ”9” with ”nine”, added hyphen.

(11) IRM 3.21.111.4.1.6 - Updated Figure 3.21.111-1 for tax year 2018.

(12) IRM 3.21.111.1.2(3) - Updated Revenue Procedure references.

(13) IRM 3.21.111.4.1.7 - Updated Figure 3.21.111-2 for tax year 2018.

(14) IRM 3.21.111.4.1.8(1) - Replaced ”1” with ”one”, added hyphen.

(15) IRM 3.21.111.4.1.10(1) - Replaced ”5” with ”five”, added hyphen.

(16) IRM 3.21.111.4.1.13 - Replaced ”(1)” with ”one”, added hyphen.

(17) IRM 3.21.111.5.1.1(1)(a) - Replaced ”4” with ”four”, added hyphen.

(18) IRM 3.21.111.5.1.1(1)(b) - Added Note for editing the tax year when incorrect.

(19) IRM 3.21.111.5.1.2(1) - Replaced ”8” with ”eight”, added hyphen.

(20) IRM 3.21.111.5.1.4 - Removed reference to new calendar year 2017.

(21) IRM 3.21.111.5.1.5(2) - Replaced ”1” with ”one”, added hyphen.

(22) IRM 3.21.111.5.1.6(1) - Removed reference to new calendar year 2017.

(23) IRM 3.21.111.5.1.6(2) - Replaced ”1” with ”one”, added hyphen.

(24) IRM 3.21.111.5.1.7(1) - Replaced ”2” with ”two”, added hyphen.

(25) IRM 3.21.111.5.1.7(1) - Updated Figure 3.21.111-3 for tax year 2018.

(26) IRM 3.21.111.5.1.9(6) - Updated Figure 3.21.111-4 for tax year 2018.

(27) IRM 3.21.111.5.1.10(2) - Replaced ”2” with ”two”, added hyphen.

(28) IRM 3.21.111.5.1.10(5) - Added new Chapter 3 Exemption Code 23.

(29) IRM 3.21.111.5.1.11(2)- Replaced ”2” with ”two”, added hyphen.

(30) IRM 3.21.111.5.1.12 - Replaced ”4” with ”four”, added hyphen, and updated tax rate table with new rates.

(31) IRM 3.21.111.5.1.14 - Updated Figure 3.21.111-5 for tax year 2018.

(32) IRM 3.21.111.5.1.16 - Updated title to this subsection, replaced ”1” with ”one”, added hyphen.

(33) IRM 3.21.111.5.1.18 - Changed this subsection from Tax Paid by Withholding Agent, to Overwithheld tax repaid to recipient pursuant to adjustment procedures.

(34) IRM 3.21.111.5.1.20 - Changed this subsection from Amount Repaid to Recipient, to Tax Paid by Withholding Agent.

(35) IRM 3.21.111.5.1.21 - Replaced ”9” with ”nine”, added hyphen.

(36) IRM 3.21.111.5.1.22(2) - Replaced ”2” with ”two”, added hyphen.

(37) IRM 3.21.111.5.1.23(2) - Replaced ”2” with ”two”, added hyphen.

(38) IRM 3.21.111.5.1.26 - Replaced ”2” with ”two”, added hyphen.

(39) IRM 3.21.111.5.1.29 - Updated Figure 3.21.111-6 for tax year 2018.

(40) IRM 3.21.111.5.1.31(2) - Replaced ”2” with ”two”, added hyphen.

(41) IRM 3.21.111.5.1.32 - Updated Figure 3.21.111-7 for tax year 2018.

(42) IRM 3.21.111.5.1.33(2) - Replaced ”9” with ”nine”, added hyphen.

(43) IRM 3.21.111.5.1.34(2) - Replaced ”2” with ”two”, added hyphen.

(44) IRM 3.21.111.5.1.34(6) - Updated Figure 3.21.111-8 for tax year 2018.

(45) IRM 3.21.111.5.1.35(2) - Replaced ”2” with ”two”, added hyphen.

(46) IRM 3.21.111.5.1.38(1) - Removed reference to new calendar year 2016.

(47) IRM 3.21.111.5.1.38(2) - Replaced ”2” with ”two”, added hyphen.

(48) IRM 3.21.111.5.1.38(4) - Removed LOB Code 01.

(49) IRM 3.21.111.5.1.40(2) - Replaced ”8” with ”eight”, added hyphen.

(50) IRM 3.21.111.5.1.42(2) - Replaced ”9” with ”nine”, added hyphen.

(51) IRM 3.21.111.5.1.43(2) - Replaced ”1” with ”one”, added hyphen.

(52) IRM 3.21.111.5.1.44(2) - Replaced ”9” with ”nine”, added hyphen.

(53) IRM 3.21.111.5.1.45(2) - Replaced ”2” with ”two”, added hyphen.

(54) IRM 3.21.111.5.1.46(2) - Replaced ”2” with ”two”, added hyphen.

(55) IRM 3.21.111.5.1.49(2) - Replaced ”2” with ”two”, added hyphen.

(56) IRM 3.21.111.5.1.53(2) - Replaced ”9” with ”nine”, added hyphen.

(57) IRM 3.21.111.5.1.55(1) - Reworded sentence.

(58) IRM 3.21.111.5.1.55(2) - Replaced ”2” with ”two”, added hyphen.

(59) IRM 3.21.111.5.1.56(1) - Reworded sentence.

(60) IRM 3.21.111.5.1.56(2) - Replaced ”2” with ”two”, added hyphen.

(61) IRM 3.21.111.5.1.57(3) - Reworded sentence.

(62) IRM 3.21.111.5.1.58(3) - Reworded sentence.

(63) IRM 3.21.111.5.1.59(2) - Replaced ”2” with ”two”, added hyphen.

(64) Exhibit 3.21.111-1 - Updated exhibit for tax year 2018 and updated web link.

(65) Exhibit 3.21.111-2 - Updated exhibit for tax year 2018 and updated web link.

(66) Exhibit 3.21.111-3 - Updated exhibit for tax year 2018.

(67) Exhibit 3.21.111-4 - Updated exhibit for tax year 2018.

(68) Exhibit 3.21.111-5 - Removed Chapter 3 Status Codes 33, 36, 37, and 38.

(69) Exhibit 3.21.111-6 - Added Chapter 4 Status Codes 17 and 18.

(70) Exhibit 3.21.111-14 - Several minor corrections were made.

Effect on Other Documents

IRM 3.21.111, dated November 14, 2017 (effective 01-01-2018), is superseded.

Audience

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

Effective Date

(01-01-2019)

Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Purpose: The Document Perfection Operation, Code & Edit 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 appropriate 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 Withholding database will perform math verification, validity, and consistency checks after the returns and other documents are coded and edited, as prescribed in this Section.

  2. 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.

  3. Policy Owner: The Director Submission Processing is responsible for the policies in this IRM.

  4. Program Owner: The Code & Edit/ERS IMF Section of the Paper Processing Branch of Submission Processing.

  5. Primary Stakeholders: Submission Processing (SP) and Large Business and International (LB&I).

  6. Program Goals: Accurately review and prepare all paper returns for Data Transcription and/or correspondence as necessary.

Background

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

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

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

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

    Note:

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

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

  4. The Form 1042-T is processed under:

    • Program Code: 71700

    • File Source: Payor Master File (PMF)

    • Tax class: 5

    • Master File Transaction (MFT): 88

    • Document Code: 01

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

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

    • Return Due Date: March 15, 2019

    • Extended Return Due Date: May 15, 2019

  5. The Form 1042-S is processed under:

    • Program Code: 71720

    • File Source: Information Returns Master File (IRMF)

    • Tax Class: 5

    • MFT: 12

    • Document Code: 02

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

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

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

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

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

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

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

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

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

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

      Note:

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

    • Return Due Date: March 15, 2019

    • Extended Return Due Date: May 15, 2019

Authority

  1. IRC Section 1441 through IRC Section 1464, Chapter Three Withholding (CTW) changes to IRC Section 1441 and IRC Section 1442, state, a person that makes a payment of 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 generally 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.

  2. Significant changes were implemented by the regulations under Chapter 3 (IRC Section 1441 through IRC Section 1446) and Chapter 61 (IRC Section 6041 through IRC Section 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 had begun in 1992 to revamp the withholding and reporting on payments of U.S. source income to foreign persons.

  3. The regulations under Chapter 3 and Chapter 61 have been revised to coordinate with Chapter 4. In addition, a new QI agreement has been published in Revenue Procedure 2017-15, and new WP and WT agreements have been published in Revenue Procedure 2017-21.

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

  5. If a payment that is withheld upon under Chapter 4, a withholding agent is not required to withhold under Chapter 3 with respect to such a payment.

  6. 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 section 1.1474-1(d).

  7. 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.”

  8. Policy statements for Submission Processing are contained in IRM 1.2.12, Service Wide Policies and Authorities, Policy Statements for Submission Processing Activities.

Responsibilities

  1. The Director, SP Office is responsible for monitoring operational performance for the Submission Processing campus.

  2. The Operations Manager is responsible for monitoring operational performance for their operation.

  3. The team manager/lead is responsible for performance monitoring and ensuring employees have the tools to perform their duties.

  4. The team employees are responsible for following the instructions contained in this IRM and maintaining updated IRM procedures.

Program Management and Review

  1. Program Reports: The Monitoring Section under Submission Processing Program Management/Process Assurance monitors the Code & Edit

  2. Program Effectiveness: The program goals are measured by the following reviews:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial Reviews

Program Objectives and Review

  1. Program Goals: Code & Edit is tasked with timely and accurately reviewing and editing all paper returns.

  2. Program Reports: The Monitoring Section under Submission Processing Program Management /Process Assurance monitors the inventory and timely processing of the returns.

  3. Program Effectiveness: The program goals are measured by the following reviews:

    • Embedded Quality Submission Processing (EQSP)

    • Balanced Measures

    • Managerial reviews

  4. Annual Review: The processes included in this manual are review annually to ensure accuracy and promote consistent tax administration.

Terms/Definitions/Acronyms

  1. Acronyms and a glossary of terms can be found in Exhibit 3.21.111-14.

Related Resources

  1. 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

IRS Employee Contacts Section 3705(a)

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

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

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

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

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

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

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

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

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

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

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

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

♦Taxpayer Advocate Service (TAS)♦

  1. Per the Taxpayer Bill of Rights (TBOR), taxpayers have the right to expect a fair and just tax system which provides taxpayers with the opportunity to have their facts and circumstances considered when it might affect their underlying liabilities, ability to pay, or ability to provide information timely.

  2. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service (TAS) if they are experiencing financial difficulty or if the IRS has not resolved their tax issues properly and timely through normal channels. For additional information on the Taxpayer Bill of Rights, visit http://taxpayeradvocate.irs.gov/About-TAS/Taxpayer-Rights

  3. 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.

  4. "Same day" includes cases that can be resolve in 24 hours, as well as cases where steps can be taken within 24 hours to begin resolving the taxpayer's issue. (See also IRM 13.1.7.4, Same-Day Resolution by Operations.)

  5. When making a TAS referral, use Form 911, and forward to TAS in accordance with your local procedures.

Correspondence Imaging Systems (CIS) Returns

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

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

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

    Note:

    Do not correspond for missing information on CIS returns.

Correspondence Action

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

    • Responses to IRS requests for information or data;

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

    • annotated notice responses; or

    • other correspondence providing additional information or disputing a notice.

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

    Note:

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

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

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

  5. Prepare Form 13653, Request for Missing Information for Form 1042, Annual Withholding Tax Return for US Source Income of Foreign Persons. See IRM 3.21.111.4.3.1 for additional information.

Form 13653, Request for Missing Information for Form 1042, Annual Withholding Tax Return for US Source Income of Foreign Persons
  1. Prepare Form 13653 when the withholding agent has completed a Form 1042 as a transmitting record for Form 1042-S, and it is not possible to dummy all the required fields on the Form 1042-T.

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

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

      Reminder:

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

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

      Caution:

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

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

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

    Note:

    Be sure to write clearly.

General Processing Procedures

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

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

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

    2. If a money amount must be entered, edit the field in dollars only. When there is no clear separation between dollars and cents, edit a slash 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.

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

      Note:

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

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

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

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

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

      Title Abbreviation
      Mister, Misses, Miss Mr., Mrs., Ms.
      Reverend Rev.
      Captain, Sergeant, General, etc. Cpt., Sgt., Gen., etc.
      Doctor Dr.
      Honorable Hon.
      Governor Gov.
  3. If a Form 1042-T or Form 1042-S has been filed on a form, or in a format, that does not exactly match the official IRS form, correspond with the withholding agent using Letter 1791c for the correct documents. If contact is not possible or there is no reply, dummy the information provided to a blank, current year Form 1042-T or Form 1042-S, as appropriate.

    Note:

    Follow no-reply procedures until further notice.

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

    Note:

    Follow no-reply procedures until further notice.

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

  6. If there are two different Form 1042-S belonging to two different taxpayers printed on the same piece of paper (one printed on the front of a page and a different one on the back), photo copy one side and cross out the original. Each should be processed individually and should have its own DLN.

Types of Edit Marks

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

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

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

Document Controls

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

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

    IF THEN
    The block is partial and the number is not shown, Circle one number higher than the last sequence number of the form.
    Blocks, or unblocked documents which should have been blocked, are received without a Block Control Document, Return the block to the originating area (through Accounting) for correction.
  3. Form 1332, Block and Selection Record- Used for batch transmittal of Non-Remittance documents (NR).

    Note:

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

Document Locator Number (DLN)
  1. Document Locator Number (DLN):

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

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

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

    4. The parts of the DLN are:

      1 2 3 4 5 6 7
      FLC Tax Class Doc Code Julian Date Block Series Serial # List Year
      DLN part Description
      1 The first two digits of the DLN is the FLC (or Campus Code).
      2 The third digit is the tax class.
      3 The fourth and fifth digit is the doc code.
      4 The sixth, seventh, and eighth digits represent the control (Julian) date.
      5 The ninth, tenth and eleventh digit represents the block number.
      6 The twelfth and thirteenth digit are the serial numbers.
      7 The fourteenth digit is the last year digit of the year the DLN was assigned. This digit is computer generated.
Verification of Numbered Blocks of Returns
  1. On numbered blocks, compare the first return in the block to the Form 813-C or Form 1332.

    IF THEN
    The documents have not been blocked,

    Note:

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

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

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

      IF THEN
      There is a difference, Give the block to your manager to reassociate the documents with the correct block control document. It is necessary to check only the DLN of the first document in a block to make the above comparisons of DLNs.
    3. A document may have two different DLNs stamped on it because of re-blocking.

      IF THEN
      Multiple DLNs are present, Circle the incorrect DLN. The correct DLN can be determined from the Form 813-C or Form 1332.
  2. Blocking Returns and Documents - All returns and documents to be input through ISRP are assembled into blocks of 100 documents or less.

♦IRM Deviation Procedures♦

  1. IRM deviations must be submitted in writing following instructions from IRM 1.11.2.2.4, When Procedures Deviate from the IRM, and elevated through appropriate channels for executive approval.

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

  1. Form 1042-T is used to transmit Copy A of paper Form 1042-S. There are different types of Form 1042-S filed (Chapter 3, Chapter 4, original, amended, pro-rata or amended pro-rata).

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

  3. Because there are different types of Forms 1042-S filed (Chapter 3, Chapter 4, original, amended, pro-rata, and amended pro-rata), one Form 1042-T must be submitted for each type of paper Form 1042-S attached. Ensure the type of Form 1042-T indicated matches the type indicated on the associated Form(s) 1042-S (Example: If Form 1042-S, Amended Box is checked, the Form 1042-T, Line 1b, Amended Box must be checked).

  4. Withholding agents are required via regulations to file 250 or more Form 1042-S electronically. Penalties will be issued by Compliance when Submission Processing receives and processes over 250 paper Form 1042-S.

  5. See Training Job Aid 2544-702 (ELMS 10878/22104) for Prior Year Conversion for tax years 2007 and prior, 2013-2008, 2014 and 2015.

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

  7. Form 1042-T and 1042-S will be edited and envelopes will be destroyed by following classified waste(CW) procedures. The entire batch will be forwarded to numbering.

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

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

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

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

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

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

    Note:

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

Form 1042-T, Line by Line Editing

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

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

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

      Note:

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

      Note:

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

Received Date
  1. Identifies 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 stamped/edited below the signature area.

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

    1. The earliest legible postmark date on the envelope.

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

    3. The Revenue Officer's date of signature.

    4. The taxpayer's date of signature

    5. The DLN Julian Date.

    6. The current date minus 10 days.

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

Line 1a - Chapter Three and Chapter Four Indicator
  1. Identifies the type of 1042-T and the corresponding 1042-S forms that the agent is filing.

  2. This is a one-position field.

  3. 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 the 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 the Form 1042–T

    If Line 1a is blank and both Status Code fields have entries, Only one can be checked, research the attached 1042-S forms to verify if Line 3 has 3 or 4. Separate the Chapter 3 and 4 1042-S Forms 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 the Form 1042–T

    Note:

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

Chapter 3 and 4 Status Codes
  1. Identifies the status of the withholding agent under chapters 3 and 4.

  2. This is a two-position field.

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

  4. Forms for 2013 and prior will always be Chapter 3.

  5. 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.

Employer Identification Number (EIN) - Withholding Agent
  1. This is a nine-position field.

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

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

    • If not found, continue processing.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Withholding Agent Name Line
  1. Withholding Agent Name Line - Identifies 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).

  2. Valid characters for name and address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

    Note:

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

    Figure 3.21.111-1

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    Please click here for the text description of the image.

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

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

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

    Note:

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

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

    Note:

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

    2
    Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two-character code from the Province Code table above the name of the Province. See Exhibit 3.21.111-9, for Canadian Province Codes. 2
    Country (Code) - Required field if withholding agent has a foreign address. Edit the two-character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Exhibit 3.21.111-10, for Country Code Table for editing entity/address. See Figure 3.21.111–9, for Country Code editing procedures.

    Note:

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

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

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

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

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

    Note:

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

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

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

    Figure 3.21.111-2

    This is an Image: 38622002.gif
     

    Please click here for the text description of the image.

Line 1b - Original or Amended Check Box
  1. This is a one-position numeric field that must be blank or 1.

  2. Edit a 1 to the left of the Amended box if it is checked, otherwise, leave blank.

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

  2. If the withholding agent checked the box under Line 1c then edit a "1" to the right of the checkbox on Line 1c.

Number of Paper Forms 1042–S - Dotted Line 1d
  1. This is a five-position numeric field that must be present.

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

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

    Note:

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

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

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

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

Total Federal Tax Withheld - Lines 3a and 3b
  1. Identifies the Federal Tax withheld from all associated Form 1042-S for either Chapter 4 or Chapter 3.

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

    2. 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 1042-T for the Chapter 3 1042-S and a 1042-T for all the Chapter 4 1042-S. These will be recorded on a spreadsheet given to you by the HQ analyst.
      Line 3a is blank, and should have an entry, Calculate the total of Federal Tax Withheld from Box 7a on all attached Chapter Four declared Form 1042-S that are attached. Line 3 on Form 1042-S will have a 4.
      Line 3b is blank, and should have an entry, Calculate the total of Federal Tax Withheld from Box 7a on all attached Chapter Three declared Form 1042-S that are attached. Line 3 on Form 1042-S will have a 3.
      Line 7a is blank, Then Line 7b should have a check on the Form 1042-S. Enter one dollar in the Form 1042-T field.
      All amounts are blank on the attached form 1042-S documents Take to your lead or manager to contact the HQ analyst.
Final Return Checkbox
  1. This is a one one-position field that may or may not be present. No editing is required.

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

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

  3. Do not question any signature on the return.

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

    Note:

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

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

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

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

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

  2. Due to the addition of IRC Section 1471 through IRC Section 1474 and the regulations under those sections, the Form 1042-S has been completely revised. The Form 1042-S is a five part document with a copy each for the Internal Revenue Service and the withholding agent and three copies for the recipient.

  3. Copy A of the Form 1042-S, for each recipient, should be filed with the Form 1042-T. If multiple copies (Copies B, C, D, and/or E) have been filed, along with Copy A, for a recipient, process ONLY Copy A. Delete all additional copies, for that recipient, by 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. The Form 1042-S must be returned to the recipient with instructions to file a Form 1040NR with the Austin Campus.

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

    Note:

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

  5. If only Copy B, C, D, and/or E, is received, do not process. Follow procedures for Classified Waste (CW).

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

    • which was withheld at source, and

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

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

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

    1. Regular corporate rates, or

    2. Graduated individual rates.

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

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

  11. For those Form 1042-S that are filed electronically, all money fields are reported in dollars only. However, for those Form 1042-S that are filed on paper, money fields can be reported in dollars only or dollars and cents. If a money amount must be entered, edit the field in dollars. When there is no clear separation between dollars and cents, edit a slash between dollars and cents (i.e. If the amount was entered as $510.75, edit to $510/.75)

  12. If you receive a prior year Form 1042-S you must edit Form 1042-S to conform with the current tax year line numbering sequence (Training Job Aid 2544-702 (ELMS 10878/22104)). If unable to edit, then prepare a dummy 1042-S using the current year form.

Form 1042-S Editing

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

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

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

    2. Only numeric characters are valid.

      If Then
      Prior year revision used to file current year form, Edit current tax year in YYYY format to the left of preprinted tax year. Circle the preprinted tax year to delete it.
      Determined from attached forms that Tax Period is other than current year, Remove from current year batch. Forward for batching as prior tax year.

      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.
Received Date
  1. Identifies the received date of the 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 stamped/edited to the bottom right corner.

      Note:

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

      If Then
      Missing, incomplete, illegible, or unable to determine, Research document or attachments for the received date and edit accordingly.
      Two Form 1042-S documents are on one page, One stamped or edited received date between the two forms is acceptable.
Cross Reference DLN
  1. Identifies 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, then research other Form 1042-S within multi-pack to locate Withholding Agent DLN and edit accordingly.

      Note:

      If not found, continue processing.

Unique Form Identifier (UFI)
  1. Withholding agents are required to assign a unique identifying number to each Form 1042-S they file.

  2. This is a 10-position numeric field where valid values are 0-9

  3. If less than 10 digits are present, completely blank, or clearly contains non-numeric values on paper filed Form 1042-S, continue processing.

Amended Checkbox
  1. Identifies the type of 1042-S forms that are being submitted. The forms have been amended from the original.

  2. This is a one-position numeric field that may be blank or 1.

  3. Edit a 1 to the left of the Amended box if it is checked, otherwise, leave blank.

Amendment Number
  1. Withholding agents filing an amended form must indicate the amendment number (using “1” for the first amendment and increasing sequentially for each subsequent amendment).

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

  3. Blank and numeric characters 1-9 are valid.

Income Code, Box 1
  1. Identifies 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 dividends rate
      08 Dividends paid by foreign corporations
      09 Capital gains
      10 Industrial royalties
      11 Motion picture or television copyright royalties
      12 Other royalties (for example, copyright, recording, publishing)
      13 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 Section §1445
      26 Unsevered growing crops and timber distributions by a trust subject to IRC Section §1445
      27 Publicly traded partnership distributions subject to IRC Section §1446
      28 Gambling winnings
      29 Deposit interest
      30 Original issue discount (OID)
      31 Short-term OID
      32 Notional principal contracting income
      33 Substitute payment-interest
      34 Substitute payment - dividends
      35 Substitute payment - other
      36 Capital gains distributions
      37 Return of capital
      38 Eligible deferred compensation items subject to IRC section 877A(d)(1)
      39 Distributions from a nongrantor trust subject to IRC section 877A(f)(1)
      40 Other dividend equivalent under IRC section 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
  2. 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 that will need to be processed using the following steps below:

    • 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 additional 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

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    Please click here for the text description of the image.

Gross Income, Box 2
  1. Identifies 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, then edit 1.

    • If the gross income is negative, X the entry, then edit 1.

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

Chapter Three or Four Indicator, Box 3
  1. Identifies that the agent is filing a Chapter 3 or 4 Form 1042-S.

  2. This is a one-position field.

  3. This field should contain a 3 or a 4 only.

  4. 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. If there is an entry in Box 7a, use the Chapter 4 tax rate box (box 4b) to determine the appropriate 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.

  5. If both a 3 and a 4 are present, research the Chapter 4 Tax rate box (box 4b) to determine the appropriate 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.

  6. 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 H.Q. 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

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Chapter 3 Exemption Code, Box 3a
  1. Identifies when the agent is applying an exemption from Chapter 3 withholding.

  2. This is a two-position field.

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

  4. May be filled in if Chapter Four Checkbox is marked.

  5. 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 (other than portfolio interest)
    03 Income is not from U.S. sources
    04 Exempt under tax treaty
    05 Portfolio interest exempt under IRC
    06 QI that assumes primary withholding responsibility
    07 Withholding foreign partnership or withholding foreign trust
    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 section 897(l)
Chapter 4 Exemption Code, Box 4a
  1. Identifies when the agent is applying an exemption from Chapter 4 withholding.

  2. This is a two-position field.

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

  4. May be filled in if Chapter Three Checkbox is marked.

  5. 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
Chapter 3 and 4 Tax Rates, Boxes 3b and 4b
  1. Identifies the tax rate percentage applicable for the income reported.

  2. This is a four-position field.

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

    Chapter Three Tax Rate Table

    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
    05.00 17.50 37.00
    07.00 20.00 39.60
    08.00 21.00  
  4. The Chapter 4 Tax Rate is 30 percent. If another rate is entered, continue processing.

  5. 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 accordingly (i.e., 5% or 5, edit 0500.)
    Only two digits are present, Refer to tax rate table and edit accordingly (i.e., 14% or 14, edit 1400).
    If 0 or 00 is present, Edit 0000.
    If blank, Continue processing.
    Entry is not numeric and tax rate is spelled out Refer to your Subject Matter Expert (SME), lead, and/or manager, to make a determination for corrective action to be taken.
Withholding Allowances, Box 5
  1. Identifies the amount a withholding agent is paying to a recipient that is not taxable per treaty benefits.

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

    • Enter amount in whole dollars only.

Net Income, Box 6
  1. Identifies 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.

  2. 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

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Federal Tax Withheld, Box 7a
  1. Identifies the amount of U.S. tax withheld.

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

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

  4. Enter amount in whole dollars only.

Tax Withheld Not Deposited Was Not Deposited Because Escrow Procedures Were Applied, Box 7b
  1. This is a one-position field that may or may not be checked.

  2. Edit a 1 to the left of the checkbox if it is checked, otherwise, leave blank.

Tax Withheld by Other Agents, Box 8
  1. Identifies the amount of income that has already been subject to withholding by another withholding agent(s). The amount withheld is reported in box 8.

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

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

  4. Enter amount in whole dollars only.

Overwithheld tax repaid to recipient pursuant to adjustment procedures, Box 9
  1. Identifies 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 then 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.

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

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

  4. Enter amount in whole dollars only.

Total Withholding Credit, Box 10
  1. Identifies the total amount of tax withheld by withholding agents.

  2. This is a 12-position field.

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

  4. Enter amount in whole dollars only.

  5. If blank, zero (0), dash, or none, and an entry appears in box 7a or 8, compute (add lines 7a and 8) and 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 or dash if present.

Tax Paid by Withholding Agent, Box 11
  1. Identifies the tax paid by the withholding agent from its own funds rather than through withholding from the payment to the recipient.

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

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

  4. Enter amount in whole dollars only.

Withholding Agent's EIN, Box 12a
  1. Identifies 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 ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ .

  2. This is a nine-position field.

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

    If Then
    EIN is missing, incomplete or illegible, or SSN or ITIN is present, Circle the incorrect entry. Research associated Form 1042-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.

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
Withholding Agent's Chapter 3 Status Code, Box 12b
  1. Identifies the type of withholding Agent for Chapter 3 purposes.

  2. This is a two-position field.

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

  4. 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.

  5. If other than numeric, X out.

Withholding Agent's Chapter 4 Status Code, Box 12c
  1. Identifies the type of withholding Agent for Chapter 4 purposes.

  2. This is a two-position field.

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

  4. 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.

  5. If other than numeric, X out.

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

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

  2. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

      Note:

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

  3. 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.

Withholding Agent's Global Intermediary Identification Number (GIIN), Box 12e
  1. The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for chapter 4 reporting purposes.

  2. This is a 19-position field.

  3. May be blank, alpha, numeric and contain periods.

Withholding Agent's Country Code, Box 12f
  1. The country where the withholding agent is located.

  2. This is a two-position field.

  3. Must contain alphas.

  4. If blank, use the correct country code from the agent's address. See Exhibit 3.21.111-9, Country Code chart for correct country codes.

  5. 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.

Withholding Agent's Foreign Taxpayer Identification Number, Box 12g
  1. The Foreign Tax ID number issued to the withholding agent.

  2. This is a 22-position field.

  3. Valid characters are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

Withholding Agent's Address Boxes, 12h and 12i
  1. The withholding agent's street address is a required field.

  2. The address must consist of a number, street and/or apartment or suite number (P.O. Box if mail is not delivered to a street address). See Exhibit 3.21.111- 5, for Street Abbreviations.

    Note:

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

  3. This is a 40-position field.

  4. Valid characters for address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

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

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

  7. If missing or illegible, perfect from attachments.

Withholding Agent's City or Town, Province or State, Country, ZIP or Foreign Postal Code, Box 12i
  1. This box identifies the withholding agent's address of record. This field consists of entries which identify city or town, state, province (if applicable), country (if applicable) and zip or foreign postal code. The withholding agent must have a complete address.

    • The table below lists the field lengths:

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

    Note:

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

    2
    Province (Code) - Required field if the withholding agent's country of record is Canada. Only enter a Province Code when the country is Canada. Edit the two-character code from the Province Code table above the name of the Province. See Exhibit 3.21.111- 9, for Canadian Province Codes. 2
    Country (Code) - Required field if withholding agent has a foreign address. Edit the two-character code, from the Country Code table. Edit a slash (/) before the country code and a slash (/) and dollar sign ($) after the country code. See Exhibit 3.21.111-10, for Country Code Table for editing entity/address. See Figure 3.21.111–9 for country Code editing procedures.

    Note:

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

    2
    Foreign Postal/Zip Code - Identifies the foreign postal or domestic zip code for the withholding agent. 5-9
  2. Arrow data to the correct position in the series.

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

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

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

    Note:

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

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

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

    Figure 3.21.111-6

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

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

  3. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

      Note:

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

Recipient's Country Code, Box 13b
  1. Identifies the recipient's country code of residence for which the tax treaty benefits are based.

    Note:

    Exhibit 3.21.111-10, Country Code, contains a list of valid country codes.

  2. This is a two-position field.

  3. 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 contains US Leave as is and continue processing.
Recipient Address, Boxes 13c and 13d
  1. Identifies the recipients address of record.

  2. This field consists of entries which identify street, city or town, state, province (if applicable), country (if applicable) and zip or foreign postal code. Recipient’s address will not be completed when recipient is Unknown or a Withholding Rate Pool.

  3. Valid characters for address fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

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

  5. The table below lists the field lengths:

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

    Note:

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

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

    Note:

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

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

    Note:

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

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

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

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

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

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

    Note:

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

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

    Country Name Prefix Length
    Austria A 4
    Belgium B 4
    Denmark DK 4
    Finland SK 5
    France F 5
    Germany D 4 or 5
    Hungary H 4
    Italy I 5
    Liechtenstein FL 4
    Norway N 4
    Sweden S 5
    Switzerland CH 4
  12. If a domestic address has been entered for the recipient in box 13d, and the Country Code is blank, leave blank and continue processing.

    Figure 3.21.111-7

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

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

  3. Only numeric characters are valid.

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

  5. The Recipient's TIN cannot be the same as the Withholding Agent's EIN, Box 12a. If the same number is present in box 13e, delete the entry.

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

Recipient's Chapter 3 Status Code, Box 13f
  1. Identifies the type of recipient for the Chapter 3 income being reported by the withholding agent.

  2. This is a two-position field.

  3. Only numeric characters are valid.

  4. 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.

  5. For 2013 and prior, the Recipient's Status Code was for Chapter 3 Withholding. The box was labeled Recipient Code.

  6. 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

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Recipient's Chapter 4 Status Code, Box 13g
  1. Identifies the type of recipient for the Chapter 4 income being reported by the withholding agent.

  2. This is a two-position field.

  3. Only numeric characters are valid.

    Note:

    See Exhibit 3.21.111-6 for a list of valid Chapter 4 Status Codes.

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

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

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

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

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

Recipient's GIIN, Box 13h
  1. The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.

  2. This is a 19-position field.

  3. May be blank, alpha, numeric and contain periods.

Recipient's Foreign Tax Identifying Number, if any, Box 13i
  1. The Recipient's identifying number, used in the country of residence, for tax purposes.

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

  3. Alpha and/or numeric characters are valid.

LOB Code, Box 13j
  1. Withholding agents withholding at a reduced rate based on a treaty claim by an entity will include a limitation on benefits code (LOB code).

  2. This is a two-position field that may be present.

  3. Numeric characters are valid.

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

    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
Recipient's Account Number, Box 13k
  1. Recipient's Account Number is assigned by the withholding agent and is used to identify the recipient's account.

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

  3. Any character present is valid.

  4. No editing is required.

Recipient's Date of Birth, Box 13l
  1. The date of birth of the recipient.

  2. This is an eight-position field.

  3. May be blank, or contain numeric values only.

  4. Must be in MMDDYYYY format.

Primary Withholding Agent's Name, Box 14a
  1. 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.

  2. This field consists of 40 characters.

  3. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

Primary Withholding Agent's EIN, Box 14b
  1. The EIN of the agent that the amounts withheld are reported.

  2. This is a nine-position, all numeric field.

Pro-rata Basis Reporting Checkbox, Box 15
  1. Identifies pro-rata bases reporting.

  2. This is a one-position numeric field that must be blank or 1.

  3. Edit a 1 to the left of the Pro-Rata Basis Reporting box if it is checked, otherwise, leave blank.

Intermediary or Flow-through Entity's EIN, Box 15a
  1. The EIN of the intermediary or flow-through entity.

  2. This is a nine-position, all numeric field.

Intermediary Chapter 3 Status Code, Box 15b
  1. Identifies the type of intermediary for the Chapter 3 income being reported by the withholding agent.

  2. This is a two-position field.

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

  4. 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.

  5. 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.

Intermediary Chapter 4 Status Code, Box 15c
  1. Identifies the type of intermediary for the Chapter 4 income being reported by the withholding agent.

  2. This is a two-position field.

  3. 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.

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

  5. 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.

Intermediary or Flow-through Entity's Name, Box 15d
  1. 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.

  2. 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.

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

  4. Valid characters for name fields are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

    • Percent (%)

Intermediary or Flow-through Entity's GIIN, Box 15e
  1. The Global Intermediary Identification Number (GIIN) is the identification number that is assigned for Chapter 4 reporting purposes.

  2. This is a 19-position field.

  3. May be blank, alpha, numeric and contain periods.

Intermediary or Flow-through Entity's Country Code, Box 15f
  1. The country where the intermediary or flow-through entity is located.

  2. This is a two-position field.

  3. If blank, leave blank.

  4. 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.

Intermediary or Flow-through Entity's Foreign Tax Identification Number, Box 15g
  1. This is a 22-position field.

  2. Valid characters are:

    • Alpha (A-Z)

    • Numeric (0-9)

    • Blank

    • Ampersand (&)

    • Hyphen (-)

    • Slash (/)

    • Period (.)

    • Comma (,)

    • Apostrophe (')

    • Pound (#)

Intermediary's or Flow-Through Entity's name and Address, Boxes 15d, 15h, and 15i
  1. Identifies the name, address and TIN of an Intermediary or flow-through Entity.

  2. This is a 40-position field.

  3. Follow Country Code editing instructions found in IRM 3.21.111.5.1.32.

Payer's Name, Box 16a
  1. A payer is the person for whom the withholding agent acts as an authorized agent and agrees to withhold and report a payment.

  2. This is a 40-position field.

  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.

Payer's TIN, Box 16b
  1. The payer's taxpayer identification number.

  2. This is a nine-position field.

  3. May be blank or contain numeric values only.

Payer's GIIN, Box 16c
  1. The payer's Global Intermediary Identification Number (GIIN) used to report Chapter 4 withholding.

  2. This is a 19-position field.

  3. May be blank, alpha, numeric and contain periods.

Payer's Chapter 3 Status Code, Box 16d
  1. Identifies the payer type for Chapter 3 purposes.

  2. This is a two-position field.

  3. Only numeric characters (0-9) and blanks are valid. See Exhibit 3.21.111-5 for Chapter 3 Status Codes.

  4. 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.

  5. If other than numeric, X out.

Payer's Chapter 4 Status Code, Box 16e
  1. Identifies the payer type for Chapter 4 purposes.

  2. This is a two-position field.

  3. Only numeric characters (0-9) and blanks are valid. See Exhibit 3.21.111-6 for Chapter 4 Status Codes.

  4. 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.

  5. If other than numeric, X out.

State Income Tax Withheld, Box 17a
  1. The tax withheld for state income tax purposes.

  2. This is a 12-position field.

  3. May be blank or contain numeric values only. No periods.

  4. Accept the whole dollar portion and ignore the cents

Payer’s State Tax No., Box 17b
  1. The number assigned by the state for reporting withholding.

  2. This is a 10-digit field.

  3. May be blank or contain numeric values only.

Name of State, Box 17c
  1. The name of the state that the tax was withheld.

  2. This is a two-position field.

  3. May be blank or contain alphas only.

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

Form 1042-T ExhibitThis is an Image: 38622100.gif
 

Please click here for the text description of the image.

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

Form 1042-S ExhibitThis is an Image: 38622101.gif
 

Please click here for the text description of the image.

Form 1042-T Transcription Lines

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

Please click here for the text description of the image.

Form 1042-S Transcription Lines

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

Please click here for the text description of the image.

Chapter 3 Status Codes

Chapter 3 Status Code Definition
01 U.S. Withholding Agent – FI
02 U.S. Withholding Agent – Other
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
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 Government or International Organization
20 Tax Exempt Organization (Section 501(c) entities)
21 Unknown Recipient

Note:

If Recipient Code is Unknown Recipient, then 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
34 U.S. Withholding Agent—Foreign branch of FI
35 Qualified Derivatives Dealer
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
   
   
   
   

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
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 section 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 - GeneraI

Street Address Abbreviations

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

State Abbreviations and Zip Code Ranges including APO/FPO/DPO Zones

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

APO/FPO/DPO ZONE

State Abbreviation Postal Code Range
AA 340
AE 090–098
AP 962–966

Country Code Chart for Tax Purposes (Form 1042-S)

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

Foreign Address Format

Foreign address format ExhibitThis is an Image: 38622117.gif
 

Please click here for the text description of the image.

This is an Image: 38622118.gif
 

Please click here for the text description of the image.

Canadian Province Codes

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

Note:

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

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

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

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 contain more than 20 blocks.
BLOCK A group of up to 100 documents with consecutive DLNs containing the same block number (digits 9 through 11 of the DLN). (A block cannot contain more than 100 documents since the documents are numbered from 00 to 99.)
BUSINESS MASTER FILE (BMF) A magnetic tape file containing 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 contains two types of records:
  1. Taxpayer records

  2. 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 identifies a special condition or directs the computer to take a specific programmed action. CCCs are posted to the Master File.
CORRESPONDENCE ACTION SHEETS (CAS) 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 2019, a Current Year Return is a return filed for tax year 2018.
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 Written information, (e.g., forms, schedules and attachments).
DOCUMENT LOCATOR NUMBER (DLN) 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 identifies 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 An indication 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 containing 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 (IDRS) 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 will convert 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 contains taxpayer accounts.
MISBLOCKED RETURN A Form 1040, Form 1040A or Form 1040EZ, found in the wrong type of block or batch. For example, a Form 1040A found in a batch of Forms 1040.
MISFILED RETURN A Form 1040, Form 1040A or Form 1040EZ, filed when a BMF form should have been filed instead.
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.
NUMERIC CHARACTER A number or numeral between 0 and 9, inclusive.
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.
PAID PREPARER TAX IDENTIFICATION NUMBER (PTIN) Paid 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 (S-TIN) 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 (SSN) 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 containing a unique identifying number of the Code & 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, 201812 stands for the tax year ending December 31, 2018.
TAXPAYER ADVOCATE SERVICE (TAS) An independent organization within the IRS whose employees assist taxpayers who are 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 identifies 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 DOCUMENT A document which cannot be perfected for the ADP system, usually because of incomplete information.
 

Acronym

ACRONYM DEFINITION
ADM Administrator
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
CLS Common Law Spouse
COMM Commissioner
CONS Conservator
CP Computer Paragraph
CPA Certified Public Accountant
CSPC Cincinnati Submission Processing Campus
CY Calendar Year
DECD Deceased
DLN Document Locator Number
DOD
  • Date of Death

  • Department of Defense

DPO Diplomatic Post Office
EGA Ethics in Government Act
EIN Employer Identification Number
ELF Electronic Filing
ERS Error Resolution System
EXEC Executor
FEC Foreign Employer Compensation
FICA Federal Insurance Contribution Act
FMV Fair Market Value
FPO Fleet Post Office
FSPC Fresno Submission Processing Campus
FRP Frivolous Return Program
FTD Federal Tax Deposit
FTF Failure to File
FTP Failure to Pay
FY Fiscal Year
GDN Guardian
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
IRSN Internal Revenue Service Number
ISRP Integrated Submission and Remittance Processing System
ITIN Individual Taxpayer Identification Number
IVO Integrity and Verification Operation
KCSPC Kansas City Submission Processing Campus
LAFCP Living Abroad Foreign Care Provider
LEM Law Enforcement Manual
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
PDS Private Delivery Service
PER REP Personal Representative
POA Power of Attorney
POD Post of Duty
PPR
  • Personal Property Rental

  • Payment Plan Request

P-TIN Paid Preparer Tax Identification Number
Prep. TIN(PTIN) Paid 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