Contents -

Form 1042-S 

NOTE 

ANY INSTRUCTIONS CONTAINED HEREIN ARE ADVISORY ONLY.

REFER TO IRS 1042-S INSTRUCTIONS FOR OFFICIAL INFORMATION.



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

File Form 1042-S to report income paid to foreign persons (including persons presumed to be foreign) that are subject to withholding, even if no amount is deducted and withheld from the payment because of a treaty or Code exception to taxation or if any amount withheld was repaid to the payee.  See IRS 1042-S instructions for reporting additional information, such as amounts from various sources.

Payee Information

Account number (Required)
Enter any number assigned by the payer to the payee that can be used by the IRS to distinguish between information returns.  This number must be unique for each information return.  The account number is critical in the correction process, especially when more than one information return is filed for a payee.  MAG-FILER will automatically assign an account number if the field is blank.
 
TIN #
Recipient's U.S. Tin, if any - Enter the recipient's valid 9-digit Taxpayer Identification Number (SSN or EIN, as appropriate).  Leave this field blank if the TIN# is unknown.   Any form filed containing an invalid identification number in this entry may be returned for correction.

SSN  (else EIN)
SSN or ITIN/EIN - Check this box if the payee TIN # is a Social Security Number (SSN) of an individual.  Leave this box blank if the recipient's TIN # is an Employer Identification Number (EIN) of a business, an organization, or unknown.

TIN# QI-EIN
Check this box if the recipient TIN # is a Qualified Intermediary number  (QI-EIN). Leave this box blank if not a QI-EIN.

NOTE: Valid characters for all name and address fields are alpha, numeric, blank, ampersand (&), hyphen (-), comma (,), apostrophe (' ), forward slash (/), pound sign (#), and the percent (% used as "in care of").  No other special characters such as those used in foreign addresses are acceptable.

Name (Required)
Enter the name of the recipient belonging to the Taxpayer Identification Number (TIN).  If the TIN, is an SSN, enter as last name suffix, first, middle initial, e.g., Doe Jr., John A.).  If the TIN is an EIN/QI-EIN, the name is entered as is.  

Address (Required)
Enter the recipient's mailing address.  The address MUST be present.  This entry must not contain any data other than the recipient's mailing address.  The address field contains two fields.  Enter the main mailing address in the first field.  Enter the supplementary address in the second field on the right.  The supplementary address will print above the main mailing address.

City (Required)
Enter the recipient's city or town.  Do not enter state and zip code information in this entry.

State (Required)
Enter the abbreviation for the recipient's state, US or Canadian Province from the drop-down list.     Note: - Other =  Outside US and Canada (enters a blank in the state)

Zip (Required)
Enter the recipient's valid 9-digit zip code assigned by the U.S. Postal Service or foreign zip code.  Dashes for U.S. will be entered for you. Ignore the dash on foreign zips.

Income Code (Required)
Enter the appropriate two-digit income code from the drop-down list.

Gross Income Amount (Required)
Gross amount you paid to or on behalf of the recipient during the current tax year including any withheld tax.

Withholding Allowances
Enter the allowable withholding allowance amount (for income code 15 or 16 only).

Net Income
Enter the net income amount (column (b) minus column (c) ) if an amount is entered in column Withholding allowances (c).

Tax Rate % (Required)
Enter the tax rate you used for the income in column (b) or (d), as applicable.  Select the tax rate from the drop-down list.  If the income is exempt from tax enter "00.00".

Exempt Code (Required)
If the tax rate entered in column (e) is 0% ("00"), enter the appropriate exemption code from the drop-down list.

Fed Income Tax W/H
Enter any withheld tax minus any tax that has been released (repaid) to the recipient.  Do not enter more than the gross income amount reported in column (b).

US tax withheld ind
If the Federal Income Tax W/H is correctly reported use the default of 0.  This field cannot be blank.  Otherwise select from the drop-down list, "1" for over withheld or 2 for under withheld.  This information will be reported in the IRS file and does not print to the form.

Amount Repaid
Enter an amount that was over withheld or if you are going to reimburse yourself by reducing the amount of any deposit made for a payment period in the calendar year following the calendar year of withholding.

Recipient Code  (Required)
Enter the recipient code from the drop-down list.

Recip Country Code  (Required)
Select the code-country, from the drop-down list, that is associated with the recipients residence.     This code will print the resident country name in the Recipient area under City, State, and Zip on Form 1042-S.  Blank this field if in the U.S.  Enter "OC", Other Countries, only when the country of residence cannot be determined.  Use the Country Codes list located in 2006 Instructions for Form 1042-S.  

Recip Tax Country Code (Required)
Recipient's country of residence for tax purposes - Enter the code, from the drop-down list, for the country of which the recipient claims residency under that country's tax laws.  Do not enter "US" in this column.  Enter "OC", Other Countries, only when the country of residence cannot be determined.  Use the Country Codes list located in 2006 Instructions for Form 1042-S.  

Payer's Name if Different
Enter the payer's name if different from the Withholding Agent's.

Payer's TIN if Different
Enter the payer's TIN if different from the Withholding Agent's.  Use appropriate dashes when entering the TIN.

State Name
Enter the two-digit state abbreviation for filing to states.

State Income Tax W/H
Enter the state income tax amount when reporting to states.  Note: The Payer's state tax number will come from MAG-FILER Utilities -  State Filing Numbers option for printing.

NONQUALIFIED INTERMEDIARY'S (NQI's)/FLOW-THROUGH ENTITY'S
If you are reporting amounts paid to a recipient whose withholding certificates of other documentation has been submitted to you with a Form W-8IMY provided by an NQI or flow-through entity, you must include the name, address, and TIN, if any, and country code of the NQI or flow-through entity with whose Form W-8IMY the recipient's Form W-8 or other documentation is associated.
An NQI or flow-through entity will leave these boxes blank unless it is making the payment to an NQI or flow-through entity.
If you are a nominee that is the withholding agent under section 1446, enter the PTP's name and other information in these boxes.

NQI Country Code
NONQUALIFIED INTERMEDIARY'S (NQI's)/FLOW-THROUGH ENTITY'S Country Code - Enter the Country Code from the drop-down box where the NQI or flow-through entity is located.

NQI Name
Enter the name of the NQI or flow-through entity.

NQI Name2
Enter the name continuation of the NQI or flow-through entity.

NQI Address
The address field contains two fields.  Enter the main address of the NQI or flow-through entity (number and street).  Enter the supplementary address (room or suite no.) in the second field on the right.

NQI City/St/Zip
Enter the city or town, state, and zip of the NQI or flow-through entity.  Enter the abbreviation for the recipient's state, US Province or Canadian country from the drop-down list.
Note:  - Other =  Outside US and Canada (enters a blank in the state).

NQI TIN
Enter the TIN, if any, of the NQI or flow-through entity.

Special 
This area may be used to record information for state or local government reporting or for the filer's own purposes.  Special information will not print on the Forms. 

Select Print
Check this box to select specific payees for printing.

Amended Return
Check this box if this entry indicates an amended (corrected) return that was previously filed with the IRS.  Check to place an X in the Amended box when correcting a Form 1042-S previously furnished to the recipient.  You must provide a statement to recipients showing the corrections as soon as possible.