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Form 1042-S Instructions

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

Rev. 2024

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Department of the Treasury  
Internal Revenue Service  
2024  
Instructions for Form 1042-S  
Foreign Person's U.S. Source Income Subject to Withholding  
Contents  
Page  
Future Developments  
General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Purpose of Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3  
Where, When, and How To File . . . . . . . . . . . . . . . . . 3  
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5  
Amounts Subject to Reporting on Form 1042-S . . . . . . 9  
For the latest information about developments related to  
Form 1042-S and its instructions, such as legislation enacted  
after they were published, go to IRS.gov/Form1042S.  
What’s New  
Reporting of distributions of publicly traded partner-  
ships (PTPs). The instructions for boxes 16a through 16e  
state that a withholding agent for a PTP distribution is  
required to provide the applicable information for the PTP in  
the payer's box (including code 38) when reporting the  
payment of a PTP distribution using income code 27, 57, or  
58. These instructions have been updated to clarify that the  
requirement to report the PTP's information with respect to its  
distribution does not apply to a withholding agent paying a  
PTP distribution to a Qualified Intermediary (QI) when  
reporting to the QI in reporting pools on Forms 1042-S with  
respect to the distribution. Under these instructions, this  
exception also applies to a QI reporting a PTP distribution  
using reporting pools. See Boxes 16a Through 16e, Payer's  
Name, TIN, GIIN, and Status Code, later. For this change and  
other clarifications for the reporting of PTP distributions, see  
Withholding Tax), later.  
Amounts That Are Not Subject to Reporting on  
Form 1042-S . . . . . . . . . . . . . . . . . . . . . . . . . . 10  
Distributions Attributable to Dispositions of U.S.  
Real Property Interests by Publicly Traded  
Trusts and Qualified Investment Entities . . . . . . . 11  
Publicly Traded Partnerships (Sections 1446(a)  
and (f) Withholding Tax) . . . . . . . . . . . . . . . . . . 11  
Requirement To Withhold . . . . . . . . . . . . . . . . . . . . 12  
Before Completing Form 1042-S . . . . . . . . . . . . . . . 12  
Payments by U.S. Withholding Agents . . . . . . . . . . . 13  
Amounts Paid by QIs . . . . . . . . . . . . . . . . . . . . . . . . 18  
Amounts Paid by Nonqualified Intermediaries and  
Flow-Through Entities . . . . . . . . . . . . . . . . . . . . 21  
Multiple Withholding Agent Rule . . . . . . . . . . . . . . . 22  
Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23  
Avoid Common Errors . . . . . . . . . . . . . . . . . . . . . . . 23  
Specific Instructions for Withholding Agents . . . . . . . 24  
Rounding Off to Whole Dollars . . . . . . . . . . . . . . . . . 24  
Amended Checkbox . . . . . . . . . . . . . . . . . . . . . . . . 24  
Amendment Number . . . . . . . . . . . . . . . . . . . . . . . . 24  
Box 1, Income Code . . . . . . . . . . . . . . . . . . . . . . . . 24  
Box 2, Gross Income . . . . . . . . . . . . . . . . . . . . . . . . 25  
Box 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26  
Box 5, Withholding Allowance . . . . . . . . . . . . . . . . . 28  
Boxes 7a Through 11, Federal Tax Withheld . . . . . . . 28  
Reporting of a GIIN. The 2023 Form 1042-S instructions  
contained a note, which stated that if a payment was properly  
classified with a chapter 3 indicator in box 3, the withholding  
agent was not required to enter a GIIN in boxes 12e, 13h,  
15e, and 16c. This exception to the reporting of a GIIN has  
been removed from these instructions. See the instructions  
for the above boxes for when a GIIN is required. See the  
instructions for boxes 16a through 16e for when a GIIN is  
required for a PTP reported in box 16a.  
Reminders  
Electronic filing. A withholding agent that is not a financial  
institution is required to file Forms 1042-S electronically if it is  
either required to file at least 10 information returns during  
the year or is a partnership with more than 100 partners. See  
Regulations section 301.6011-2.  
Box 12a, Withholding Agent's Employer  
Identification Number (EIN) . . . . . . . . . . . . . . . . 29  
Boxes 12d Through 12i, Withholding Agent's  
Name, GIIN, Country Code, Foreign TIN (if  
any), and Address . . . . . . . . . . . . . . . . . . . . . . 29  
Income code 56. Income code 56 was added to the 2022  
Form 1042-S to address section 871(m) transactions  
resulting from combining transactions under Regulations  
section 1.871-15(n) (including as modified by transition relief  
under Notice 2022-37, 2022-37 I.R.B. 234, available at  
Income code 56 should be used for any dividend equivalent  
pursuant to a transaction that is a section 871(m) transaction  
as a result of combining transactions, even if another income  
code could apply to the dividend equivalent. See Box 1,  
Income Code, later, for additional information.  
Boxes 15a Through 15i, Intermediary/  
Flow-Through Entity's Name, Status Code,  
Country Code, Address, EIN, GIIN, and  
Foreign Tax Identification Number . . . . . . . . . . . 32  
Boxes 16a Through 16e, Payer's Name, TIN, GIIN,  
and Status Code . . . . . . . . . . . . . . . . . . . . . . . . 33  
Boxes 17a Through 17c, State Income Tax  
Withheld and Related Information . . . . . . . . . . . 33  
Amended Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . 33  
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
Reliance on proposed regulations reducing burden un-  
der FATCA and chapter 3. On December 18, 2018, the IRS  
and the Department of the Treasury issued proposed  
regulations (REG-132881-17) to reduce taxpayer burden with  
Feb 2, 2024  
Cat. No. 64278A  
   
respect to certain requirements under chapters 3 and 4. The  
proposed regulations provide that, under section 7805(b)(1)  
(C), taxpayers may generally rely on the proposed  
regulations until final regulations are issued. Specifically, for  
purposes of these instructions, a withholding agent may rely  
on the following provisions in connection with completing  
Form 1042-S.  
Filing Information Returns Electronically (FIRE) System.  
For files submitted on the FIRE System, it is the responsibility  
of the filer to check the status within 5 business days to verify  
the results of the transmission. The IRS will not mail error  
reports for files that are bad. See Pub. 1187, Specifications  
for Electronic Filing of Form 1042-S, Foreign Person’s U.S.  
Source Income Subject to Withholding.  
Unique form identifier. Withholding agents must assign a  
unique identifying number to each Form 1042-S they file. This  
identifying number is used, for example, to identify which  
information return is being corrected or amended when  
multiple information returns are filed by a withholding agent  
with respect to the same recipient. The unique identifying  
number cannot be the recipient's U.S. or foreign TIN. The  
unique identifying number must be numeric. The length of a  
given identifying number must be exactly 10 digits. The  
identifying number must be unique to each original Form  
1042-S filed for the current year. The identifying number can  
be used on a new original form in a subsequent year.  
Withholding and reporting in a subsequent year. A  
partnership or trust that is permitted to withhold in a  
subsequent year with respect to a foreign partner's or  
beneficiary's share of income for the prior year may  
designate the deposit of the withholding as attributable to the  
preceding year and in some cases a partnership is provided  
an extended due date for filing and furnishing Form 1042-S.  
See the instructions for box 7c, later.  
Adjustments to overwithholding under the  
reimbursement and set-off procedures. A withholding  
agent may make adjustments to overwithholding using either  
the reimbursement or set-off procedures until the extended  
due date for filing Form 1042-S (unless the Form 1042-S has  
already been filed or furnished). Additionally, a withholding  
agent may use the extended due date for filing a Form 1042  
to claim a credit for any adjustments made to  
List of foreign country codes. Form 1042-S filers must  
use the same list of country codes used on other IRS forms  
(for example, Forms 926, 1118, 3520, and 8805). This list of  
foreign country codes may be found at IRS.gov/  
overwithholding. See the instructions for box 9, later.  
Withholding rates. The rate of withholding under section  
1446(a) by a PTP on a distribution of income effectively  
connected to a U.S. trade or business is 21% for corporate  
partners and 37% for all other partners.  
The rate of withholding by a qualified investment entity  
(QIE) on a distribution to a nonresident alien or foreign  
corporation that is treated as gain from the sale or exchange  
of a U.S. real property interest by the shareholder is 21%.  
Qualified derivatives dealers (QDDs). These instructions  
provide guidance on how to report payments on Form 1042-S  
that are made to and by QDDs. See Payments by U.S.  
information on the withholding and reporting requirements  
associated with payments made to and by QDDs, see Rev.  
Proc. 2022-43, 2022-52 I.R.B. 570, available at IRS.gov/irb/  
2022-52_IRB#RP-2022-43. See also Notice 2022-37,  
2022-37 I.R.B. 234 available at IRS.gov/irb/  
Note. Although the list of country codes is maintained by  
Modernized e-File, Form 1042-S filers who file electronically  
will continue to use the FIRE System. See the instructions for  
Electronic Reporting, later. Also, if applicable, the option to  
file Form 1042-S by paper is still available.  
General Instructions  
Purpose of Form  
Use Form 1042-S to report income described under Amounts  
Subject to Reporting on Form 1042-S, later, and to report  
amounts withheld under chapter 3 or chapter 4.  
Use Form 1042-S to report specified federal procurement  
payments paid to foreign persons that are subject to  
withholding under section 5000C.  
2022-37_IRB#NOT-2022-37, which extends the phase-in  
period provided in Notice 2020-2, 2020-3 I.R.B. 327,  
certain provisions of the section 871(m) regulations for 2  
years (including 2024), including for certain requirements of a  
QDD.  
Foreign Account Tax Compliance Act (FATCA). Form  
1042-S reports payments and amounts withheld under the  
provisions commonly known as FATCA or chapter 4 of the  
Internal Revenue Code (chapter 4) in addition to those  
amounts required to be reported under chapter 3 of the  
Internal Revenue Code (chapter 3). Form 1042-S requires  
the reporting of an applicable exemption to the extent  
withholding under chapter 4 did not apply to a payment of  
U.S. source fixed or determinable annual or periodical  
(FDAP) income (including deposit interest) that is reportable  
on Form 1042-S. For payments to intermediaries,  
Use Form 1042-S to report payments of eligible deferred  
compensation items or distributions from nongrantor trusts to  
covered expatriates that are subject to withholding under  
section 877A. See Box 1, Income Code, later.  
Use Form 1042-S to report certain distributions that are  
made by publicly traded trusts and QIEs (as defined under  
section 897(h)(4)(A)). See Distributions Attributable to  
Use Form 1042-S to report distributions of effectively  
connected income (ECI) by a PTP or nominee and amounts  
realized paid on certain transfers of PTP interests. See  
Withholding Tax), later.  
Every person required to deduct and withhold any tax  
under chapter 3 or chapter 4 is liable for such tax.  
!
flow-through entities, and recipients, Form 1042-S requires  
that the chapter 3 status (or classification) and, when the  
payment reported is a withholdable payment, the chapter 4  
status, be reported on the form according to the codes  
provided in these instructions. For the requirement of a  
withholding agent to file a Form 1042-S for chapter 4  
purposes, see Regulations section 1.1474-1(d).  
CAUTION  
Do not use Form 1042-S to report an item required to be  
reported on any of the following forms.  
Form W-2 (wages and other compensation made to  
employees (other than compensation for dependent personal  
services for which the beneficial owner is claiming treaty  
2
Instructions for Form 1042-S (2024)  
               
benefits), including wages in the form of group-term life  
insurance).  
Sunday, or legal holiday in the District of Columbia or where  
the return is to be filed, the due date is the next business day.  
Form 1099 (except if indicated otherwise in these  
Copy A is filed with the IRS. Send all paper Forms 1042-S  
with Form 1042-T, Annual Summary and Transmittal of Forms  
1042-S, to the address in the Form 1042-T instructions. You  
must use Form 1042-T to transmit paper Forms 1042-S. Use  
a separate Form 1042-T to transmit each type of Form  
and the Form 1042-T instructions for more information.  
Electronic filing requirement. See Electronic Reporting,  
later, for information on who is required to file Form 1042-S  
electronically.  
instructions).  
Form 8288-A, Statement of Withholding on Certain  
Dispositions by Foreign Persons, or Form 8805, Foreign  
Partner's Information Statement of Section 1446 Withholding  
Tax. Withholding agents otherwise required to report a  
distribution partly on a Form 8288-A or Form 8805 and partly  
on a Form 1042-S may instead report the entire amount on  
Form 8288-A or Form 8805.  
Form 8966, FATCA Report. Foreign financial institutions  
(FFIs), sponsoring entities of certain FFIs and other foreign  
entities, and withholding agents are required to report on  
Form 8966 certain account holders and payees. An FFI or  
withholding agent may also be required to file Form 1042-S to  
report payments of U.S. source FDAP income made to such  
persons and to report tax deducted and withheld, if any.  
Attach only Copy A to Form 1042-T. Provide Copies  
B, C, and D to the recipient of the income. All copies  
must match the copy filed with the IRS. Any  
TIP  
differences between the copy of the form issued to recipients  
and the copy filed with the IRS will lead to delays in  
processing the recipient's tax return. The IRS may disallow  
claims for refund or credit for amounts withheld reported on  
Form 1042-S if the form attached to such claims differs from  
the copy that was filed with the IRS.  
Who Must File  
Every withholding agent (defined in Definitions, later) must  
file an information return on Form 1042-S to report amounts  
paid during the preceding calendar year that are described  
However, withholding agents who are individuals are not  
required to report a payment on Form 1042-S if they are not  
making the payment as part of their trade or business and no  
withholding is required to be made on the payment. For  
example, an individual making a payment of interest that  
qualifies for the portfolio interest exception from withholding  
is not required to report the payment if the portfolio interest is  
paid on a loan that is not connected to the individual's trade  
or business. However, an individual who is a withholding  
agent paying an amount that actually has been subject to  
withholding is required to report the payment. Also, an  
individual paying an amount on which withholding is required  
must report the payment, whether or not the individual  
actually withholds. See Multiple Withholding Agent Rule,  
later, for exceptions to reporting when another person has  
reported the same payment to the recipient. Note that there  
may be a payment for tax purposes, even if there is no net  
payment. For example, see Regulations section 1.871-15(i)  
for when there is a dividend equivalent.  
With respect to a withholdable payment, the recipient copy  
should be provided to the intermediary or flow-through entity  
named as a recipient with respect to a chapter 4 reporting  
pool, if applicable.  
Extension of time to file. To request an extension of time to  
file Forms 1042-S, file Form 8809, Application for Extension  
of Time To File Information Returns. See the instructions for  
Form 8809 at IRS.gov/Form8809 for where to file that form.  
You should request an extension as soon as you are aware  
that an extension is necessary, but no later than the due date  
for filing Form 1042-S. By filing Form 8809, you will get an  
automatic 30-day extension to file Form 1042-S. If you need  
more time, you may submit a second Form 8809 before the  
end of the initial extended due date. See Form 8809 for more  
information.  
Recipient copies. You may request an extension of time  
to provide the statements to recipients by faxing a letter to:  
Internal Revenue Service  
Technical Services Operation  
Attn: Extension of Time Coordinator  
Fax: 877-477-0572  
You must file a Form 1042-S even if you did not withhold  
tax under chapter 3 because the income was exempt from  
tax under a U.S. tax treaty or the Internal Revenue Code,  
including the exemption for income that is effectively  
connected with the conduct of a trade or business in the  
United States, or you released the tax withheld to the  
recipient. For exceptions, see Amounts That Are Not Subject  
Amounts paid to an individual that is a bona fide resident  
of a U.S. territory are not subject to reporting on Form 1042-S  
if the beneficial owner of the income is a U.S. citizen,  
national, or resident alien (such amounts may be subject to  
Form 1099 reporting).  
(International 304-579-4105)  
The letter must include:  
1. Your name,  
2. Your TIN,  
3. Your address,  
4. Type of return (Form 1042-S),  
5. A statement that your extension request is for  
providing statements to recipients,  
6. Reason for delay, and  
7. The signature of the payer or authorized agent.  
If you file Form 1042-S, you must also file Form 1042,  
Annual Withholding Tax Return for U.S. Source  
!
CAUTION  
Income of Foreign Persons. See Form 1042 and its  
Your request must be received no later than the date the  
Forms 1042-S are due to the recipients. If your request for an  
extension is approved, generally you will be granted a  
maximum of 30 extra days to furnish the recipient statements.  
See Extension to provide statements to recipients in Pub.  
515, Withholding of Tax on Nonresident Aliens and Foreign  
Entities.  
instructions for more information.  
Where, When, and How To File  
Forms 1042-S, whether filed on paper or electronically, must  
be filed with the IRS and be furnished to the recipient of the  
income by March 15, 2025. If the 15th falls on a Saturday,  
3
Instructions for Form 1042-S (2024)  
         
See Pub. 1187 for more information about filing  
extension requests electronically instead of on a  
paper Form 8809.  
If you have tax law questions pertaining to Form 1042-S,  
call 267-941-1000 (not a toll-free number).  
!
CAUTION  
Additional Information  
For more information on the withholding of tax, see Pub. 515.  
To order this publication and other publications and forms,  
call 800-TAX-FORM (800-829-3676). You can download or  
print some of the forms and publications you may need on  
IRS.gov/Forms. Otherwise, you can go to IRS.gov/  
Electronic Reporting  
Forms 1042-S must be filed electronically if:  
You are a person (including a corporation, partnership,  
individual, trust, or estate) that is required to file 10 or more  
information returns during the year or is a partnership with  
more than 100 partners, or  
OrderForms to place an order and have forms mailed to you.  
You should receive your order within 10 business days.  
You are a financial institution (whether U.S. or foreign)  
regardless of the number of returns required to be filed.  
Record Retention  
Withholding agents should retain a copy of the information  
returns filed with the IRS, or have the ability to reconstruct the  
data, for at least 3 years after the reporting due date.  
Electronic submissions are filed using the FIRE System.  
The FIRE System operates 24 hours a day, 7 days a week, at  
fire.irs.gov. For more information, see Pub. 1187.  
Substitute Forms  
The electronic filing requirement also applies to amended  
returns for a withholding agent required to file its original  
Form 1042-S returns electronically under the above  
requirements.  
The official Form 1042-S is the standard for substitute forms.  
All substitute forms must comply with the rules set forth in  
Pub. 1179, General Rules and Specifications for Substitute  
Forms 1096, 1098, 1099, 5498, and Certain Other  
Information Returns. A substitute of Form 1042-S that is  
furnished to the recipient (Copy B, C, or D) must conform in  
format and size to the official IRS form and must contain the  
exact same information as the copy filed with the IRS.  
However, the size of the form may be adjusted if the  
substitute form is presented on a landscape-oriented page  
instead of portrait. Only one Form 1042-S may be submitted  
per page, regardless of orientation. You may be subject to a  
penalty for failure to furnish a correct information return. See  
Penalties, later.  
If you file electronically, do not file the same returns  
on paper. Duplicate filing may cause penalty notices  
!
CAUTION  
to be generated.  
Note. Regardless of the above requirements, the IRS  
encourages filers to transmit forms electronically.  
Hardship waiver. To receive a hardship waiver from filing  
Forms 1042-S electronically, submit Form 8508, Request for  
Waiver From Filing Information Returns Electronically. Waiver  
requests should be filed at least 45 days before the due date  
of the returns. See Form 8508 for more information.  
Note. A withholding agent is required to provide a recipient  
with a separate substitute Form 1042-S for each type of  
payment of income (as determined by the income code in  
box 1).  
Truncation of TIN Rules  
Withholding agents may truncate the recipient's TIN (social  
security number (SSN), individual taxpayer identification  
number (ITIN), or employer identification number (EIN)) on  
the recipient's copy of Form 1042-S (that is, Copies B, C, and  
D), including a substitute form. To truncate the recipient's  
TIN, only the last four digits of a TIN must be displayed and  
the remaining digits must be replaced with either asterisks (*)  
or Xs. For example, an SSN or ITIN must be truncated on the  
recipient's copy as XXX-XX-nnnn. An EIN must be truncated  
as XX-XXXnnnn.  
All of the fields on the substitute form must match the  
copy filed with the IRS and must comply with IRS  
!
CAUTION  
standards (see Pub. 1179). Any differences between  
the substitute form issued to recipients and the copy filed with  
the IRS will lead to delays in processing the recipient's tax  
return. The IRS may disallow claims for refund or credit for  
amounts withheld reported on Form 1042-S if the substitute  
form attached to such claims differs from the copy that was  
filed with the IRS.  
Withholding agents may also truncate a recipient’s foreign  
tax identification number (FTIN) on the recipient’s copy of  
Form 1042-S (Copies B, C, and D), including a substitute  
form. The same rules for truncating a recipient’s U.S. TIN  
stated above must be followed if truncating a recipient’s  
FTIN.  
Penalty for filing incorrect substitute form. Privately  
printed substitute Forms 1042-S must be exact copies of  
both the format and content of the official Form 1042-S. If you  
file a substitute for Form 1042-S, Copy A, with the IRS that is  
not an exact copy of the official Form 1042-S, Copy A, you  
may be subject to a penalty for failure to file a correct  
information return. See Penalties, later.  
Note. The recipient's TIN and FTIN must not be truncated on  
Copy A filed with the IRS. The withholding agent's EIN  
cannot be truncated on any copy.  
Account-by-Account Reporting by Certain  
Financial Institutions  
A U.S. financial institution or U.S. branch of an FFI  
Need assistance? For additional information and  
instructions on filing Forms 1042-S electronically, extensions  
of time to file (Form 8809), and hardship waivers (Form  
8508), see Pub. 1187. You also can call the Information  
Reporting Program at 866-455-7438 (toll free) or  
304-263-8700 (not a toll-free number). Do not call the  
Information Reporting Program for tax law questions. The  
Information Reporting Program can also be reached by fax at  
877-477-0572 (toll free) and international fax at  
maintaining an account within the United States is required to  
report payments of the same type of income (as determined  
by the income code in box 1) made to multiple financial  
accounts held by the same recipient on a separate Form  
1042-S for each account. For this purpose, a financial  
account is an account described in Regulations section  
1.1471-5(b)(1). See the instructions for Box 13k, Recipient’s  
304-579-4105 (not a toll-free number).  
4
Instructions for Form 1042-S (2024)  
                 
Account Number, later, for information on designating each  
income is all income included in gross income, including  
interest (as well as original issue discount (OID)), dividends,  
rents, royalties, and compensation. Amounts subject to  
chapter 3 withholding do not include amounts that are not  
FDAP, such as most gains from the sale of property (including  
market discount and option premiums), as well as other  
specific items of income (such as interest on bank deposits  
and short-term OID). See Regulations section 1.1441-2.  
Authorized agent. An agent is an authorized agent for  
purposes of filing Form 1042 or making tax deposits and  
payments on behalf of its principal (payer) only if all five of the  
following conditions apply.  
account with a separate account number.  
Combined Reporting Procedures  
Rev. Proc. 99-50 provides special procedures for successor  
entities to use combined information reporting under  
chapter 3 in certain situations following a merger or  
acquisition. A withholding agent may also use these  
procedures for purposes of reporting under chapter 4.  
Deposit Requirements  
For information and rules concerning federal tax deposits,  
see Depositing Withheld Taxes in Pub. 515 or Deposit  
Requirements in the Instructions for Form 1042.  
1. There is a written agreement between the payer and  
the person acting as agent.  
2. A Form 8655, Reporting Agent Authorization, is filed  
with the IRS if the agent is filing Form 1042 (in its own name)  
on behalf of the payer.  
Definitions  
Withholding agent. A withholding agent is any person, U.S.  
or foreign, that has control, receipt, or custody of an amount  
subject to withholding under chapter 3 who can disburse or  
make payments of an amount subject to withholding, or who  
makes a withholdable payment under chapter 4. The  
withholding agent may be an individual, corporation,  
partnership, trust, association, or any other entity. The term  
“withholding agent” also includes, but is not limited to, a  
qualified intermediary (QI), a nonqualified intermediary (NQI),  
a withholding foreign partnership (WP), a withholding foreign  
trust (WT), a flow-through entity, a U.S. branch that is treated  
as a U.S. person under Regulations section 1.1441-1(b)(2)  
(iv)(A), a territory FI, a nominee under section 1446, and an  
authorized agent. A person may be a withholding agent even  
if there is no requirement to withhold from a payment or if  
another person has already withheld the required amount  
from a payment.  
3. The books and records and relevant personnel of the  
agent are available to the payer.  
4. The payer remains fully liable for the acts of its agent  
and does not assert any of the defenses that may otherwise  
be available.  
5. If the agent is filing Form 1042 (in its own name) on  
behalf of the payer, the agent is reported as the withholding  
agent in boxes 12a through 12i and information about the  
payer is reported in boxes 16a through 16e of the Form  
1042-S.  
A sponsoring entity is a reporting agent with respect to  
withholdable payments and must fulfill the above conditions  
to be an authorized agent.  
For more information on these conditions, see Regulations  
sections 1.1441-7(c) and 1.1474-1(a)(3)(ii).  
In most cases, the U.S. person who pays (or causes to be  
paid) the item of U.S. source income to a foreign person (or  
to its agent) must withhold. However, other persons may be  
required to withhold. For example, if a payment is made by a  
QI (whether or not it assumes primary withholding  
Beneficial owner. For payments other than those for which  
a reduced rate of withholding is claimed under an income tax  
treaty, the beneficial owner of income in most cases is the  
person who is required under U.S. tax principles to include  
the income in gross income on a tax return. A person is not a  
beneficial owner of income, however, to the extent that  
person is receiving the income as a nominee, agent, or  
custodian, or to the extent the person is a conduit whose  
participation in a transaction is disregarded. In the case of  
amounts paid that do not constitute income, beneficial  
ownership is determined as if the payment were income.  
Foreign partnerships, foreign simple trusts, and foreign  
grantor trusts are not the beneficial owners of income paid to  
the partnership or trust for chapter 3 purposes. The beneficial  
owners of income paid to a foreign partnership in most cases  
are the partners in the partnership, provided that the partner  
is not itself a partnership, foreign simple or grantor trust,  
nominee, or other agent. The beneficial owner of income paid  
to a foreign simple trust (a foreign trust that is described in  
section 651(a)) in most cases is the beneficiary of the trust, if  
the beneficiary is not a foreign partnership, foreign simple or  
grantor trust, nominee, or other agent. The beneficial owner  
of a foreign grantor trust (a foreign trust to the extent that all  
or a part of the income of the trust is treated as owned by the  
grantor or another person under sections 671 through 679) is  
the person treated as the owner of the trust. The beneficial  
owner of income paid to a foreign complex trust (a foreign  
trust that is not a foreign simple trust or foreign grantor trust)  
is the trust itself.  
responsibility) and the QI knows that withholding was not  
done by the person from which it received the payment, then  
that QI is required to do the appropriate withholding. In  
addition, withholding must be done by any QI that assumes  
primary withholding responsibility under chapters 3 and 4, a  
WP, a WT, a U.S. branch that agrees to be treated as a U.S.  
person under Regulations section 1.1441-1(b)(2)(iv)(A), or  
an authorized agent. Finally, if a payment is made by an NQI  
or a flow-through entity that knows, or has reason to know,  
that withholding was not done, that NQI or flow-through entity  
is required to withhold since it also falls within the definition of  
a withholding agent.  
Account holder. Generally, the account holder is the person  
that holds the account. See Regulations section 1.1471-5(a).  
Amount realized. An amount realized on the transfer of a  
PTP interest is the amount of gross proceeds (as defined in  
Regulations section 1.6045-1(d)(5)) paid or credited to a  
partner or broker (as applicable) that is a transferor of the  
interest. The amount realized on a PTP distribution is the  
amount of the distribution reduced by the portion of the  
distribution that is attributable to the cumulative net income of  
the partnership (as determined under Regulations section  
1.1446(f)-4(c)(2)(iii)).  
Amount subject to chapter 3 withholding. Generally, an  
amount subject to chapter 3 withholding is an amount from  
sources within the United States that is FDAP income. FDAP  
The beneficial owner of income paid to a foreign estate is  
the estate itself.  
5
Instructions for Form 1042-S (2024)  
                 
A payment to a U.S. partnership, U.S. trust, or U.S. estate  
is not subject to withholding under chapter 3 or 4. A U.S.  
partnership, trust, or estate should provide the withholding  
agent with a Form W-9, Request for Taxpayer Identification  
Number and Certification. In most cases, these beneficial  
owner rules apply for purposes of section 1446; however,  
there are exceptions.  
1. Chapter 3 withholding rate pool. A payment of a single  
type of income, determined in accordance with the income  
codes used to file Form 1042-S, that is subject to a single  
rate of withholding and a single chapter 4 exemption code.  
foreign central bank of issue, a government of a U.S. territory,  
certain retirement funds, and certain entities wholly owned by  
one or more exempt beneficial owners. In addition, an exempt  
beneficial owner includes any person treated as an exempt  
beneficial owner under an applicable Model 1 IGA or Model 2  
IGA.  
Exempt recipient. An exempt recipient is any payee that is  
exempt from the Form 1099 reporting requirements.  
Exempt recipients are not exempt from withholding  
under chapter 3 unless they are U.S. persons or  
!
CAUTION  
foreign persons entitled to an exemption from  
2. Chapter 4 withholding rate pool. A pool of account  
holders or payees provided on an FFI withholding statement  
(or a chapter 4 withholding statement) that is described in  
Regulations section 1.1471-1(b)(20).  
withholding under chapter 3.  
Expatriate. A person is considered an expatriate if he or she  
relinquishes U.S. citizenship or, in the case of a long-term  
resident of the United States, ceases to be a lawful  
permanent resident as defined in section 7701(b)(6).  
Fiscally transparent entity. An entity is treated as fiscally  
transparent with respect to an item of income for which treaty  
benefits are claimed to the extent that the interest holders in  
the entity must, on a current basis, take into account  
Broker. A broker is a person described in Regulations  
section 1.1446(f)-1(b)(1) when referenced in connection with  
a transfer of a PTP interest.  
Chapter 3. Chapter 3 (Withholding of Tax on Nonresident  
Aliens and Foreign Corporations), excluding sections 1445  
and 1446.  
Disregarded entity. A business entity that has a single  
owner and is not a corporation under Regulations section  
301.7701-2(b) is disregarded as an entity separate from its  
owner.  
separately their shares of an item of income paid to the entity,  
whether or not distributed, and must determine the character  
of the items of income as if they were realized directly from  
the sources from which realized by the entity. For example,  
partnerships, common trust funds, and simple trusts or  
grantor trusts in most cases are considered to be fiscally  
transparent with respect to items of income received by them.  
Flow-through entity. For chapter 3 purposes, a  
flow-through entity is a foreign partnership (other than a WP),  
a foreign simple or grantor trust (other than a WT), or, for any  
payments for which a reduced rate of withholding under an  
income tax treaty is claimed, any entity to the extent the entity  
is considered to be fiscally transparent under section 894  
with respect to the payment by an interest holder's  
jurisdiction.  
Financial institution. A financial institution generally means  
an entity that is a depository institution, custodial institution,  
investment entity, or an insurance company (or holding  
company of an insurance company) that issues cash value  
insurance or annuity contracts. See Regulations section  
1.1471-5(e).  
Foreign financial institution (FFI). An FFI is an entity  
described in Regulations section 1.1471-5(d) or an entity  
treated as a financial institution under an Intergovernmental  
Agreement (IGA).  
Deemed-compliant FFI. Under section 1471(b)(2),  
certain FFIs are deemed to comply with the regulations under  
chapter 4 without the need to enter into an FFI agreement  
with the IRS. However, certain deemed-compliant FFIs are  
required to register with the IRS and obtain a GIIN. These  
FFIs are referred to as “registered deemed-compliant  
FFIs.See Regulations section 1.1471-5(f)(1). Registered  
deemed-compliant FFIs also include certain FFIs that satisfy  
the requirements of an applicable IGA.  
Nonparticipating FFI. A nonparticipating FFI is an FFI  
that is not a participating FFI, deemed-compliant FFI, or  
exempt beneficial owner.  
Participating FFI. A participating FFI is an FFI that has  
agreed to comply with the terms of an FFI agreement with  
respect to all branches of the FFI, other than a branch that is  
a reporting Model 1 FFI or a U.S. branch. The term  
“participating FFI” also includes a reporting Model 2 FFI and  
Disclosing QI. For purposes of section 1446(a) or (f), a QI  
that provides with its withholding statement the specific  
payee documentation referenced in Regulations section  
1.1446(f)-4(a)(7)(iii) (for an amount realized) or Regulations  
section 1.1446-4(e)(4) (for withholding on a PTP distribution  
under section 1446(a)) instead of the chapter 3 withholding  
rate pool information otherwise permitted to be included on  
the withholding statement. A QI that acts as a disclosing QI  
for a payment must act as a disclosing QI for the entire  
payment. See the 2023 QI agreement in Rev. Proc. 2022-43  
for further information.  
Dividend equivalent. To the extent specified in section  
871(m) and the regulations thereunder, a dividend equivalent  
is a payment (within the meaning of Regulations section  
1.871-15(i)) that, directly or indirectly, is contingent on, or  
determined by reference to, the payment of a dividend from  
U.S. sources, including pursuant to a securities lending,  
sale-repurchase transaction, a specified notional principal  
contract, or a specified equity-linked instrument.  
Certain other payments made by the withholding agent to  
satisfy a tax liability with respect to a dividend equivalent by  
the party receiving the dividend equivalent are dividend  
equivalents. See Regulations section 1.871-15(c) for  
additional information, including the definitions of specified  
notional principal contract and specified equity-linked  
instrument.  
Any section 871(m) amount of a QDD is treated as a  
dividend equivalent. See Rev. Proc. 2022-43 for additional  
information, including the definition of a section 871(m)  
amount.  
Exempt beneficial owner. An exempt beneficial owner  
means a person that is described in Regulations section  
1.1471-6 and includes a foreign government, a political  
subdivision of a foreign government, a wholly owned  
instrumentality or agency of a foreign government or  
governments, an international organization, a wholly owned  
agency or instrumentality of an international organization, a  
6
Instructions for Form 1042-S (2024)  
                       
a QI branch of a U.S. financial institution, unless such branch  
is a reporting Model 1 FFI.  
test or the substantial presence test for the calendar year is a  
resident alien. Any person not meeting either test is a  
nonresident alien individual. Additionally, an alien individual  
who is treated as a nonresident alien pursuant to Regulations  
section 301.7701(b)-(7) for purposes of figuring out the  
individual’s U.S. tax liability, or an alien individual who is a  
bona fide resident of Puerto Rico, Guam, the Commonwealth  
of the Northern Mariana Islands, the U.S. Virgin Islands, or  
American Samoa is a nonresident alien individual. An  
individual will not be treated as a U.S. person for a tax year or  
any portion of a tax year that the individual is a dual-resident  
taxpayer who is treated as a nonresident alien for purposes  
of figuring his or her U.S. tax liability. See Pub. 519, U.S. Tax  
Guide for Aliens, for more information on resident and  
nonresident alien status.  
Foreign person. A foreign person includes a nonresident  
alien individual, a foreign corporation, a foreign partnership, a  
foreign trust, a foreign estate, and any other person that is not  
a U.S. person. The term also includes a foreign branch or  
office of a U.S. financial institution or U.S. clearing  
organization if the foreign branch is a QI. A payment to a U.S.  
branch of a foreign person is treated as a payment to a  
foreign person for purposes of Form 1042-S.  
Global intermediary identification number (GIIN). The  
GIIN is the identification number that is assigned to a  
participating FFI (including a reporting Model 2 FFI),  
registered deemed-compliant FFI (including a reporting  
Model 1 FFI), or other entity for chapter 4 reporting purposes.  
Intermediary. An intermediary is a person that acts as a  
custodian, broker, or 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.  
Even though a nonresident alien individual married to  
a U.S. citizen or resident alien may choose to be  
!
CAUTION  
treated as a resident alien for certain purposes (for  
example, filing a joint income tax return), such individual is  
still treated as a nonresident alien for withholding tax  
purposes.  
Qualified intermediary (QI). A QI is an intermediary or  
eligible entity that is a party to a withholding agreement with  
the IRS. A QI that is a financial institution must have a  
chapter 4 status described in Regulations section  
1.1441-1(e)(5)(ii). An entity must indicate its status as a QI on  
a Form W-8IMY submitted to a withholding agent.  
Payee. Except as otherwise provided, the payee is the  
person to whom a payment is made, regardless of whether  
such person is the beneficial owner of the amount or treated  
as the recipient of the payment for purposes of reporting on  
Form 1042-S. See Regulations section 1.1471-3(a).  
A branch of a financial institution may not act as a QI in a  
country that does not have approved know-your-customer  
(KYC) rules. Countries having approved KYC rules are listed  
approved-kyc-rules. Branches that operate in non-KYC  
approved jurisdictions as intermediaries are required to act  
as NQIs. See the Instructions for Form W-8IMY for more  
information.  
Nonqualified intermediary (NQI). An NQI is any  
intermediary that is not a U.S. person and that is not a QI.  
Private arrangement intermediary (PAI). A QI that is an  
FFI may enter into a contractual agreement with another  
intermediary under which the other intermediary generally  
agrees to perform all of the obligations of the QI with respect  
to the accounts maintained directly by the other intermediary.  
See the QI agreement for the requirements of a PAI and a  
QI's agreement with a PAI.  
Nonfinancial foreign entity (NFFE). An NFFE is a foreign  
entity or an entity incorporated or organized under the laws of  
any U.S. territory that is not a financial institution.  
Excepted NFFE. The term “excepted NFFE” means an  
NFFE that is described in Regulations section 1.1472-1(c)(1)  
and generally includes a publicly traded corporation, certain  
affiliated entities related to a publicly traded corporation,  
certain territory entities, active NFFEs, and entities excluded  
from the definition of FFI (excluded FFIs) described in  
Regulations section 1.1471-5(e)(5).  
Presumption rules. For withholdable payments and for  
amounts subject to withholding under chapter 3, the  
presumption rules are those rules that a withholding agent  
must follow to determine the status of a beneficial owner or  
payee (for example, as a U.S. person or a foreign person)  
when it cannot reliably associate a payment with valid  
documentation. See, for example, Regulations sections  
1.1441-1(b)(3), 1.1441-4(a), 1.1441-5(d) and (e),  
1.1441-9(b)(3), 1.1446-1(c)(3), and 1.6049-5(d). Also see  
Pub. 515. See Regulations section 1.1446(f)-4(a)(2) and (b)  
(2) for a broker's requirement to treat a transferor of a PTP  
interest (or broker acting for the transferor) as a foreign  
person for section 1446(f) purposes absent the broker's  
receipt of a certification of non-foreign status. For a  
withholdable payment (defined in Regulations section  
1.1473-1(a)), the withholding agent must also follow the  
presumption rules under Regulations sections 1.1471-3(f)  
and, for an FFI, 1.1471-4(c)(4)(i) to determine the chapter 4  
status of the payee when it cannot reliably associate a  
payment with valid documentation.  
Publicly traded partnership (PTP). A PTP is an entity that  
has the same meaning as in section 7704 and Regulations  
sections 1.7704-1 through 1.7704-4 but does not include a  
PTP treated as a corporation under that section.  
PTP distribution. A PTP distribution is a distribution made  
by a PTP.  
PTP interest. A PTP interest is an interest in a PTP if the  
interest is publicly traded on an established securities market  
or is readily tradable on a secondary market (or the  
substantial equivalent thereof).  
Qualified derivatives dealer (QDD). A QDD is a QI that is  
an eligible entity that agrees to meet the requirements of  
Regulations section 1.1441-1(e)(6)(i) and the QI agreement.  
An eligible entity is defined in Regulations section  
1.1441-1(e)(6)(ii).  
Nominee. See Regulations section 1.1446-4(b)(3) and  
Withholding Tax), later, for persons that may act as a  
nominee for a PTP distribution.  
Nonexempt recipient. A nonexempt recipient is any person  
who is not an exempt recipient under chapter 61.  
Nonresident alien individual. Any individual who is not a  
citizen or resident of the United States is a nonresident alien  
individual. An alien individual meeting either the green card  
7
Instructions for Form 1042-S (2024)  
                               
To act as a QDD, the home office or branch, as applicable,  
must qualify and be approved for QDD status and must  
represent itself as a QDD on its Form W-8IMY and separately  
identify the home office or branch as the recipient on a  
withholding statement (if required). Each home office or  
branch that obtains QDD status is treated as a separate  
QDD. See Regulations section 1.1441-1(e)(6) and Rev. Proc.  
2022-43 for more information.  
A U.S. branch that is not treated as a U.S. person unless  
the income is, or is treated as, effectively connected with the  
conduct of a trade or business in the United States.  
For chapter 4 purposes, a recipient also includes any of  
the following.  
A recalcitrant account holder not included in a chapter 4  
reporting pool.  
A QI (other than a disclosing QI).  
A WP or WT.  
Qualified securities lender (QSL). A QSL is an FFI that  
satisfies all of the following.  
A PAI.  
A participating FFI or a registered deemed-compliant FFI  
It is a bank, custodian, broker-dealer, or clearing  
that is an NQI, NWP, or NWT and provides chapter 4  
organization that is regulated by the government in its home  
jurisdiction and that regularly borrows and lends the  
securities of U.S. corporations to unrelated customers.  
withholding rate pool information to the extent permissible.  
A participating FFI or deemed-compliant FFI that is the  
beneficial owner, including a nonreporting FFI under a Model  
1 or Model 2 IGA.  
It is subject to audit by the IRS under section 7602 or by an  
external auditor if it is a QI.  
It provides to the withholding agent an annual certification  
A U.S. branch or territory FI treated as a U.S. person under  
Regulations section 1.1441-1(b)(2)(iv)(A).  
An NFFE that is not a flow-through entity or acting as an  
of its QSL status.  
It meets the requirements to qualify as a QSL provided in  
intermediary.  
Notice 2010-46 for the transition period. See Notice 2010-46  
2010-46 was obsoleted, Notice 2022-37 permits withholding  
agents to apply the transition rules described in Notice  
2010-46 for payments made in 2023 and 2024.  
A foreign partnership or a foreign trust (other than a WP or  
WT), but only to the extent the income is effectively  
connected with its conduct of a trade or business in the  
United States.  
A partner or beneficiary of a flow-through entity that is an  
Recalcitrant account holder. Generally, a recalcitrant  
account holder is an account holder of a participating or  
registered deemed-compliant FFI that failed to provide the  
documentation required under chapter 4 to determine the  
account holder's status or to report the account as a U.S.  
account. See Regulations section 1.1471-5(g).  
NFFE (other than a WP or WT).  
A nonparticipating FFI that is a beneficial owner.  
An exempt beneficial owner that is not a flow-through entity  
or acting as an intermediary.  
In the case of a PTP distribution subject to  
withholding under section 1446(a), if another  
partnership or a trust (other than a grantor trust)  
!
Recipient. For chapter 3 purposes (including sections 1445  
CAUTION  
and 1446), a recipient includes any of the following.  
receives the distribution, the partnership or trust is the  
recipient for chapter 3 purposes.  
A beneficial owner of income.  
A QI other than a disclosing QI.  
A WP or WT.  
For chapter 4 purposes, a recipient is generally the same  
person that is a recipient for chapter 3 purposes.  
Specified notional principal contract (SNPC). An SNPC  
is any specified notional principal contract within the meaning  
of Regulations section 1.871-15(d).  
Specified U.S. person. A specified U.S. person is any U.S.  
person other than a person identified in Regulations section  
1.1473-1(c).  
Substantial U.S. owner. A substantial U.S. owner is a  
specified U.S. person described in Regulations section  
1.1473-1(b). For purposes of filing this form, a reporting  
Model 2 FFI reporting an account held by a passive NFFE  
should substitute the term “controlling person that is a  
specified U.S. person” for “substantial U.S. owner” and refer  
to the applicable Model 2 IGA for the definition of controlling  
person. A territory NFFE that is not an excepted NFFE  
determines its substantial U.S. owners by applying the 10%  
threshold in Regulations section 1.1473-1(b)(1).  
Territory FI. A territory FI is a financial institution that is  
incorporated or organized under the laws of any U.S. territory  
and is not an investment entity. See Regulations section  
1.1471-5(e)(1)(iii) for the definition of investment entity.  
A U.S. branch that is treated as a U.S. person under  
Regulations section 1.1441-1(b)(2)(iv)(A) or for section 1446  
purposes.  
A foreign partnership or a foreign trust (other than a WP or  
WT), but only to the extent the income is effectively  
connected with its conduct of a trade or business in the  
United States (except as indicated below for a grantor trust).  
A payee who is not known to be the beneficial owner, but  
who is presumed to be a foreign person under the  
presumption rules.  
A PAI.  
A partner receiving a distribution of ECI from a PTP or  
nominee.  
A QSL.  
For chapter 3 purposes (including section 1445 and  
1446), a recipient does not include any of the following.  
An NQI or disclosing QI.  
A nonwithholding foreign partnership (NWP), if the income  
is not effectively connected with its conduct of a trade or  
business in the United States.  
A disregarded entity other than a hybrid entity claiming  
treaty benefits.  
A foreign trust that is described in section 651(a) (a foreign  
simple trust) if the income is not effectively connected with  
the conduct of a trade or business in the United States.  
U.S. branch treated as a U.S. person. A U.S. branch may  
agree to be treated as a U.S. person if it meets the  
A foreign trust to the extent that all or a part of the trust is  
requirements described in the regulations under chapter 3.  
See Regulations section 1.1441-1(b)(2)(iv)(A). A U.S. branch  
may also agree to be treated as a U.S. person for purposes of  
a sale subject to section 1446(f) or for a PTP distribution.  
treated as owned by the grantor or other person under  
sections 671 through 679 (a foreign grantor trust).  
8
Instructions for Form 1042-S (2024)  
               
Additionally, a territory FI may agree to be treated as a U.S.  
person for any of these purposes.  
The U.S. branch or territory FI must provide a Form  
W-8IMY evidencing that it is agreeing to be treated as a U.S.  
person.  
alien individual who is a resident of a country identified in  
Rev. Proc. 2021-32, 2021-42 I.R.B. 465, available at  
superseding revenue procedure that is effective as of  
January 1, 2024). A payer may elect to report interest  
described above paid to any nonresident alien individual by  
reporting all such interest.  
When completing Form 1042-S, use income code 29 in  
box 1 and exemption code 02 in box 3a for chapter 3  
purposes, and the applicable chapter 4 exemption code in  
box 4a (see the instructions for boxes 3a and 4a, later).  
A U.S. branch that is treated as a U.S. person is  
treated as such solely for purposes of determining  
!
CAUTION  
whether a payment is subject to withholding by the  
branch. The branch is, for purposes of information reporting,  
a foreign person, and payments to such a branch must be  
reported on Form 1042-S.  
Interest on deposits subject to chapter 4 withholding.  
Interest on deposits from U.S. sources are withholdable  
payments and, therefore, may be subject to withholding  
under chapter 4. If payers withhold tax, they must report the  
interest and tax on Form 1042-S.  
Withholdable payment. A withholdable payment is  
generally any payment of U.S. source FDAP income, subject  
to certain exceptions. For exceptions and additional  
information, see Pub. 515 and Regulations section  
1.1473-1(a).  
Corporate distributions. The entire amount of a  
corporate distribution (whether actual or deemed) must be  
reported, regardless of any estimate of the part of the  
distribution that represents a taxable dividend. Any  
distribution, however, that is treated as gain from the  
redemption of stock is not an amount subject to withholding.  
For information on distributions from the disposition of a U.S.  
real property interest paid by a publicly traded trust or a QIE,  
Withholding certificate. The term “withholding certificate”  
refers to Form W-8 or Form W-9 in most cases.  
Note. Throughout these instructions, a reference to or  
mention of “Form W-8” is a reference to Forms W-8BEN,  
W-8BEN-E, W-8ECI, W-8EXP, and/or W-8IMY.  
Withholding foreign partnership (WP) or withholding  
foreign trust (WT). A WP or WT is a foreign partnership or  
trust that has entered into a withholding agreement with the  
IRS in which it agrees to assume primary withholding  
responsibility for all payments that are made to it for its  
partners, beneficiaries, or owners under chapter 3 (except for  
sections 1445 and 1446(a) or (f)) and under chapter 4. For  
information on these withholding agreements, see Rev. Proc.  
Regulations section 1.1441-5.  
Nonwithholding foreign partnership (NWP) or  
nonwithholding foreign trust (NWT). An NWP or NWT is  
any partnership or trust (other than a complex trust) that is  
not a U.S. person and that is not a WP or WT.  
Interest. Interest subject to reporting includes the part of a  
notional principal contract payment that is characterized as  
interest.  
Rents.  
Royalties.  
Compensation for independent personal services  
performed in the United States.  
Compensation for dependent personal services  
performed in the United States (but only if the beneficial  
owner is claiming treaty benefits).  
Annuities.  
Pension distributions and other deferred income.  
Most gambling winnings. Proceeds from a wager placed  
Amounts Subject to Reporting on  
Form 1042-S  
in blackjack, baccarat, craps, roulette, or big-6 wheel are not  
amounts subject to reporting.  
Amounts subject to reporting on Form 1042-S are amounts  
from U.S. sources paid to foreign persons (including persons  
presumed to be foreign) or included in a U.S. payee pool that  
are reportable under chapters 3 and 4, even if no amount is  
deducted and withheld from the payment because of a treaty  
or Internal Revenue Code exception to taxation or if any  
amount withheld was repaid to the payee. Amounts subject to  
reporting are amounts from sources within the United States  
that constitute (a) FDAP income (including deposit interest);  
(b) certain gains from the disposal of timber, coal, or  
domestic iron ore with a retained economic interest; and (c)  
gains relating to contingent payments received from the sale  
or exchange of patents, copyrights, and similar intangible  
property. A payment is also subject to reporting if withholding  
under chapter 4 is applied (or required to be applied) to the  
payment.  
Cancellation of indebtedness. Agents must report  
income from the cancellation of indebtedness unless the  
withholding agent is unrelated to the debtor and does not  
have knowledge of the facts that give rise to the payment.  
Effectively connected income (ECI). ECI includes  
amounts that are (or are presumed to be) effectively  
connected with the conduct of a trade or business in the  
United States even if no withholding certificate is required.  
Note that bank deposit interest is subject to Form 1042-S  
reporting if it is ECI or otherwise reportable on Form 1042-S  
(see Interest on deposits paid to certain nonresident aliens in  
this bullet list, earlier). ECI of a PTP distributed to a foreign  
partner or an amount realized subject to reporting under  
Regulations section 1.1461-1(c)(2)(i)(Q) must be reported on  
Form 1042-S.  
Notional principal contract income. Income from  
notional principal contracts that the payer knows, or must  
presume, is effectively connected with the conduct of a U.S.  
trade or business is subject to reporting using income code  
32. The amount to be reported is the amount of cash paid on  
the contract during the calendar year. Any amount of interest  
determined under the provisions of Regulations section  
1.446-3(g)(4) (dealing with interest in the case of a significant  
nonperiodic payment) is reportable as interest and not as  
Amounts subject to reporting on Form 1042-S include, but  
are not limited to, the following amounts to the extent they are  
from U.S. sources.  
Interest on deposits paid to certain nonresident  
aliens. Withholding agents must report certain interest  
described in section 871(i)(2)(A) aggregating $10 or more  
paid with respect to a deposit maintained at an office within  
the United States if such interest is paid to a nonresident  
9
Instructions for Form 1042-S (2024)  
         
notional principal contract income. See, however, the  
separate reporting for dividend equivalents, later.  
1. Substitute dividends that are dividend equivalents  
(income code 34 or 53).  
2. Dividend equivalents with respect to transactions that  
are section 871(m) transactions as a result of combining  
transactions under Regulations section 1.871-15(n) (income  
code 56).  
3. All other dividend equivalents (income code 40).  
Note. In the case of a dividend equivalent, because the  
dividend equivalent is determined on a gross basis, there  
may be a payment for reporting purposes even when there is  
no transfer of funds. See Regulations section 1.871-15(i).  
Insurance premiums. Insurance premiums from U.S.  
sources (regardless of whether or not the premium payments  
are subject to the section 4371 excise tax) are withholdable  
payments under chapter 4. If the payment is actually withheld  
upon or should have been withheld upon (but the withholding  
agent failed to withhold), such amount must be reported on  
Form 1042-S. Insurance premiums from U.S. sources are  
amounts subject to chapter 3 withholding (excluding amounts  
subject to the section 4371 excise tax that must be reported  
on Form 1042-S).  
Guarantee of indebtedness. This includes amounts  
REMIC excess inclusions. Excess inclusions from  
paid, directly or indirectly, for the provision of a guarantee of  
indebtedness issued after September 27, 2010. They must  
be paid by a noncorporate resident or U.S. corporation or by  
any foreign person if the amounts are effectively connected  
with the conduct of a U.S. trade or business. Report these  
amounts using income code 41.  
REMICs (income code 02) and withheld tax must be reported  
on Form 1042-S. A domestic partnership must separately  
state a partner's allocable share of REMIC taxable income or  
net loss and the excess inclusion amount on Schedule K-1  
(Form 1065). If the partnership allocates all or some part of  
its allocable share of REMIC taxable income to a foreign  
partner, the partner must include the partner's allocated  
amount in income as if that amount was received on the  
earliest to occur of (1) the date of distribution by the  
partnership, (2) the date the foreign partner disposes of its  
indirect interest in the REMIC residual interest, or (3) the last  
day of the partnership's tax year.  
Specified federal procurement payments. Report  
specified federal procurement payments subject to  
withholding under section 5000C.  
PTPs. Certain payments of ECI attributable to PTP  
interests (described earlier) are subject to reporting on Form  
and (f) Withholding Tax), later, for additional information.  
The partnership must withhold tax on the part of the  
REMIC amount that is an excess inclusion.  
An excess inclusion allocated to the following foreign  
persons must be included in that person's income at the  
same time as other income from the entity is included in  
income.  
Amounts That Are Not Subject to  
Reporting on Form 1042-S  
Interest and OID from short-term obligations. Interest  
and OID from any obligation payable 183 days or less from  
the date of original issue are generally not required to be  
reported on Form 1042-S. See, however, the reporting  
requirements for deposit interest described in Interest on  
deposits paid to certain nonresident aliens in the bullet list  
Registered obligations targeted to foreign markets.  
Interest on a registered obligation that is targeted to foreign  
markets and that qualifies as portfolio interest is not subject  
to reporting if it is paid to a registered owner that is a financial  
institution or member of a clearing organization and you have  
received the required certifications.  
Shareholder of a real estate investment trust (REIT).  
Shareholder of a regulated investment company (RIC).  
Participant in a common trust fund.  
Patron of a subchapter T cooperative organization.  
Students, teachers, and researchers. Amounts paid to  
foreign students, trainees, teachers, or researchers as  
scholarship or fellowship income, and compensation for  
personal services (whether or not exempt from tax under an  
income tax treaty) must be reported. However, amounts that  
are exempt from tax under section 117 are not subject to  
reporting.  
Amounts paid to foreign governments, foreign central  
Reporting will be required on interest paid on any  
banks of issue, and international organizations. These  
amounts are subject to reporting even if they are exempt from  
chapter 3 withholding under section 892 or 895.  
registered obligation (regardless of whether targeted  
!
CAUTION  
to foreign markets) if the registered obligation is  
issued after December 31, 2015.  
Foreign targeted registered obligations. Interest paid  
on registered obligations targeted to foreign markets paid by  
a U.S. person to a foreign person other than a financial  
institution or a member of a clearing organization is an  
amount subject to reporting.  
Bearer obligations targeted to foreign markets. Do not  
file Form 1042-S to report interest not subject to withholding  
on bearer obligations if a Form W-8 is not required.  
Original issue discount (OID) from the redemption of  
Withholding is required on interest paid on any  
an OID obligation. The amount subject to reporting is the  
amount of OID actually includible in the gross income of the  
foreign beneficial owner of the income, if known. Otherwise,  
the withholding agent should report the entire amount of OID  
as if the recipient held the instrument from the date of original  
issuance. See Pub. 1212, Guide to Original Issue Discount  
(OID) Instruments.  
bearer obligations targeted to foreign markets if the  
!
CAUTION  
obligation is issued after March 18, 2012. You must  
file Form 1042-S to report this interest paid on an obligation  
issued after that date.  
Notional principal contract payments that are not ECI or  
dividend equivalents. Do not report on Form 1042-S  
amounts paid on a notional principal contract, other than an  
SNPC, if the amounts are not effectively connected with the  
conduct of a trade or business in the United States. All  
amounts paid on an SNPC that are treated as dividend  
equivalents should be reported as such on Form 1042-S.  
Certain distributions attributable to dispositions of  
U.S. real property interests. See Distributions Attributable  
Dividend equivalents. Dividend equivalents have been  
divided into the following three income code reporting  
categories.  
10  
Instructions for Form 1042-S (2024)  
 
distributions may be included in the shareholder's gross  
income as a dividend (income code 06) from the QIE, not as  
long-term capital gain.  
In addition, a qualified foreign pension fund or an entity all  
of the interests of which are held by a qualified foreign  
pension fund is generally not subject to the look-through rule  
for distributions by QIEs for purposes of section 897(h).  
Accrued interest and OID. Interest paid on obligations sold  
between interest payment dates and the part of the purchase  
price of an OID obligation that is sold or exchanged in a  
transaction other than a redemption is not subject to  
reporting unless the sale or exchange is part of a plan, the  
principal purpose of which is to avoid tax, and the withholding  
agent has actual knowledge or reason to know of such plan.  
Use Forms 1042-S and 1042 to report and pay over the  
withheld amounts. All other withholding required under  
section 1445 is reported and paid over using Form 8288, U.S.  
Withholding Tax Return for Certain Dispositions by Foreign  
Persons, and Form 8288-A.  
For more information on reporting income from real  
property interests, see U.S. Real Property Interest in Pub.  
515.  
Certain withholdable payments. Withholdable payments  
not subject to reporting for chapter 3 purposes (other than  
bank deposit interest paid to certain nonresident aliens) are  
not required to be reported if withholding is not applied (or  
required to be applied) under chapter 4.  
Certain amounts realized. An amount realized that is  
excepted from withholding under Regulations section  
1.1446(f)-4(b)(3) (less than 10% effectively connected gain  
by partnership).  
Publicly Traded Partnerships  
(Sections 1446(a) and (f) Withholding  
Tax)  
Distributions Attributable to  
Dispositions of U.S. Real Property  
Interests by Publicly Traded Trusts  
and Qualified Investment Entities  
Although a PTP is a withholding agent for a distribution it  
makes to its partners, an entity receiving the distribution and  
acting as a nominee for the distribution is also treated as a  
withholding agent for the distribution and is required to  
withhold and report on Form 1042-S with respect to the  
amounts subject to withholding attributable to the distribution  
paid to foreign partners of the PTP. A nominee for this  
purpose is a person holding a PTP interest on behalf of a  
foreign person and that is a domestic person, a U.S. branch  
of a foreign corporation treated as a U.S. person for the  
distribution, or a QI assuming primary withholding  
Publicly traded trusts. In general, when a publicly traded  
trust makes a distribution to a foreign person attributable to  
the disposition of a U.S. real property interest, it must  
withhold tax under section 1445. However, this withholding  
liability is shifted to the person who pays the distribution to a  
foreign person (or to the account of the foreign person) if the  
special notice requirement of Regulations section 1.1445-8(f)  
and other requirements of Regulations section 1.1445-8(b)(1)  
are satisfied.  
responsibility for the distribution. See Regulations section  
1.1446-4(b)(3). If you are the nominee for a PTP distribution,  
enter the PTP's name and other required information in boxes  
16a through 16e with respect to the PTP on a Form 1042-S to  
report the amount of a distribution subject to section 1446(a)  
(income code 27), to report an amount realized on the  
distribution under section 1446(f) (income code 57), or when  
income code 58 applies to the distribution (for income not  
determinable by the nominee on the distribution), including  
when the 30% withholding rate under chapter 3 applies under  
regulations section 1.1446-4(d). For a payment reported with  
income code 27 or 57, or income code 58 when withholding  
is at the rate under section 1446(a), report chapter 4  
exemption code 14 (effectively connected income). If  
withholding is instead applied at a 30% rate on a payment  
reported with income code 58, report chapter 4 exemption  
code 21 (other payment not subject to chapter 4 withholding).  
See Regulations section 1.1446-4(d)(1). For income  
attributable to the distribution that is subject to withholding  
under chapter 3 or 4, report using the income code that  
would otherwise apply to report the payment to the recipient  
on a Form 1042-S for the year. Thus, unlike for other  
payments described in this paragraph, you need not  
associate the income subject to chapter 3 or 4 withholding  
with the PTP making the distribution for purposes of reporting  
on an additional Form 1042-S. These reporting requirements  
apply to a PTP distribution paid to a QI except that you need  
not associate any income attributable to a PTP distribution  
with the PTP making the distribution for reporting on Form  
1042-S when you report in reporting pools to a QI to which  
you pay the distribution.  
The amount subject to withholding for a distribution by a  
publicly traded trust is determined under the rules of  
Regulations section 1.1445-5(c)(3).  
Qualified investment entities (QIEs). Special rules apply  
to QIEs. A QIE is one of the following.  
A REIT.  
A RIC that is treated as a U.S. real property holding  
corporation (after applying certain rules in section 897(h)(4)  
(A)(ii)).  
Look-through rule for QIEs. In most cases, any distribution  
from a QIE to a nonresident alien, foreign corporation, or  
other QIE that is attributable to the QIE’s gain from the sale or  
exchange of a U.S. real property interest is treated as gain  
recognized by the nonresident alien, foreign corporation, or  
other QIE from the sale or exchange of a U.S. real property  
interest.  
A distribution by a QIE to a nonresident alien or foreign  
corporation that is treated as gain from the sale or exchange  
of a U.S. real property interest by the shareholder is subject  
to withholding at 21%.  
Certain exceptions apply to the look-through rule for  
distributions by QIEs. Any distribution by a QIE with respect  
to stock regularly traded on an established securities market  
in the United States is not treated as gain from the sale or  
exchange of a U.S. real property interest if the shareholder  
did not own more than 5% of that stock (or 10% of that stock  
in the case of REITs) at any time during the 1-year period  
ending on the date of the distribution. A distribution by a REIT  
is generally not treated as gain from the sale or exchange of a  
U.S. real property interest if the shareholder is a qualified  
shareholder (as described in section 897(k)(3)). These  
11  
Instructions for Form 1042-S (2024)  
       
As a result of the above reporting for PTP  
Chapter 4 withholding. For purposes of chapter 4, a  
withholding agent must withhold 30% of a withholdable  
payment (defined earlier) made to an FFI that is or is  
presumed to be a nonparticipating FFI (defined earlier). It  
also applies to withholdable payments made to certain  
NFFEs that fail to identify their substantial U.S. owners (or to  
certify that they have none) under Regulations section  
1.1472-1(b). For more information, see Chapter 4  
Responsibilities under Responsibilities of a Withholding  
Agent To Obtain Form W-8 in the Instructions for the  
and W-8IMY. Also see Pub. 515.  
distributions, in certain cases a nominee may need to  
issue several Forms 1042-S with respect to a foreign  
TIP  
partner based on the income codes associated with PTP  
distributions paid to the partner during the year and (in  
certain cases) the PTP making the distribution.  
For purposes of section 1446(f), a broker is generally  
required to report on Form 1042-S an amount realized from  
the transfer of a PTP interest that is paid to a foreign partner  
that is the transferor of the interest or to an NQI (other than  
when the broker agrees to report the NQI's account holders  
on Form 1042-S), a QI (other than a disclosing QI), or U.S.  
branch or territory financial institution that is treated as a U.S.  
person for the payment. A broker should report the aggregate  
of the amounts realized from sales of PTP interests paid to  
each of these recipients using income code 57 and chapter 4  
exemption code 14 (effectively connected income). For the  
reporting of amounts attributable to PTP distributions  
(including distributions subject to section 1446(f)  
A payment will be subject to withholding under either  
chapter 3 or chapter 4 but not both. If the payment is of an  
amount subject to both chapter 3 and chapter 4 withholding,  
chapter 4 withholding takes precedence.  
Before Completing Form 1042-S  
You must complete the following steps before completing  
Form 1042-S.  
withholding), see boxes 16a through 16e, later. For further  
information on reporting of amounts realized and PTP  
distributions paid to QIs, see Payment to QI of PTP  
Step 1. Determine if you have a Form 1042-S filing  
obligation. If you make a payment described under Amounts  
required to file Form 1042-S for that payment. Note that you  
may have a Form 1042-S reporting obligation even if  
withholding is not required.  
distributions or amounts realized, later. For further  
information on reporting of amounts realized and PTP  
distributions paid to nonqualified intermediaries, see  
realized and PTP distributions, later. For when an amount  
realized is reportable on Form 1042-S for section 1446(f)  
purposes, see Regulations section 1.1461-1(c)(2)(i).  
Step 2. Determine whether the payment is:  
A “withholdable payment” under chapter 4,  
An “amount subject to withholding under chapter 3,”  
Both a withholdable payment and an amount subject to  
In a case in which a partner that is a U.S. person was  
withholding under chapter 3, or  
treated as a foreign partner for purposes of  
TIP  
Neither a withholdable payment nor an amount subject to  
withholding under section 1446(a) or (f) (including an  
withholding under chapter 3.  
allocation of a payment to the person made on a withholding  
statement), a Form 1042-S may be used to report the  
payment (and withholding) with respect to the U.S. person.  
The applicable Form 1099 must also be furnished when  
otherwise required of the withholding agent with respect to  
the payment but should not report the withholding that was  
applied under section 1446(a) or (f). For reporting  
requirements for Form 1099, see the General Instructions for  
Certain Information Returns.  
Be sure to carefully read through the exceptions to  
“withholdable payment” and the exemptions from withholding  
or taxation provided under chapter 3 that are included in Pub.  
515. Note that reporting and withholding are done either  
under chapter 3 or chapter 4, not both. However, even if  
reporting is done under chapter 3, you may be required to  
provide certain chapter 4 information.  
Step 3. Determine the chapter indicator to be entered in  
box 3. The chapter indicator is generally based on whether  
amounts were withheld (or paid by the withholding agent)  
under chapter 3 or chapter 4. For example, if the payment is a  
withholdable payment and it is subject to chapter 4  
withholding (see Requirement To Withhold, earlier), enter “4”  
in box 3. If no withholding was required on the payment, enter  
“3” in box 3. For additional information, see the instructions  
for box 3, later.  
Partnerships (other than PTPs) that have effectively  
connected gross income allocable to foreign partners must  
file Form 8804, Annual Return for Partnership Withholding  
Tax (Section 1446). If these partnerships have effectively  
connected taxable income allocable to foreign partners, they  
must also pay a withholding tax under section 1446 and  
report these amounts on Form 8804 and the partners'  
allocable shares of these amounts on Form 8805.  
Note. You must always complete boxes 4a (chapter 4  
exemption code) and 4b (chapter 4 withholding tax rate)  
regardless of the chapter indicator entered in box 3.  
Requirement To Withhold  
Chapter 3 withholding. For purposes of sections 1441 and  
1442, a withholding agent must withhold 30% of any payment  
of an amount subject to withholding under chapter 3 (defined  
above) made to a payee that is a foreign person (or is  
presumed to be a foreign person) unless it can associate the  
payment with documentation to treat the payment as made to  
a foreign person entitled to a reduced rate of or exemption  
from withholding. For more information, see Chapter 3  
Responsibilities under Responsibilities of a Withholding  
Agent To Obtain Form W-8 in the Instructions for the  
and W-8IMY. Also see Pub. 515.  
Note. If a payment is a withholdable payment under  
chapter 4, you must complete boxes 4a (chapter 4 exemption  
code), 4b (chapter 4 withholding tax rate), and 13g (recipient  
chapter 4 status code), even if the payment is properly  
classified with a chapter 3 indicator in box 3.  
Be sure to complete a separate Form 1042-S for:  
Each recipient of income,  
Each income type paid to the same recipient, and  
12  
Instructions for Form 1042-S (2024)  
       
Each amount to which a separate tax rate was applied (if  
(chapter 3 exemption code), “30.00” in box 3b (chapter 3 tax  
rate), “15” in box 4a (payee not subject to chapter 4  
withholding), “00.00” in box 4b (chapter 4 tax rate), “16” in  
box 13f (individual), and “23” in box 13g (individual).  
you withheld at more than one tax rate for a specific type of  
income that you paid to the same recipient).  
Payments by U.S. Withholding Agents  
See Appendix C for a comprehensive analysis of this  
In general. U.S. withholding agents making payments  
1042-S, earlier, must file a separate Form 1042-S for each  
recipient who receives the income. Furthermore, withholding  
agents are not permitted to report multiple types of income  
on a single Form 1042-S (or substitute Form 1042-S)  
furnished to a recipient or on Copy A filed with the IRS. These  
filers must use a separate Form 1042-S (or substitute form)  
for information reportable on a single type of income.  
Example 1 fact pattern, including a step-by-step  
TIP  
guide on how to complete Form 1042-S in its entirety.  
A U.S. withholding agent making a payment directly to a  
foreign partner in a PTP and that is either acting as a  
nominee for a PTP distribution subject to withholding under  
section 1446(a) or as a broker paying an amount realized  
subject to reporting on Form 1042-S for section 1446(f)  
purposes must complete a Form 1042-S and treat the partner  
as a recipient. Thus, the withholding agent must treat a  
foreign upper-tier partnership in the PTP or a foreign simple  
trust as a recipient for reporting of these payments on Form  
1042-S. With respect to an upper-tier partnership, the  
reporting described in the preceding sentence applies  
regardless of whether the withholding agent determines its  
withholding on the payment based on the statuses of the  
partners in the upper-tier partnership (when permitted under  
applicable regulations to section 1446(a) or (f) for  
later, if the payment is made to a foreign person that is not a  
recipient.  
Payments to Recipients  
Payments directly to beneficial owners or partners. A  
U.S. withholding agent making a payment subject to  
withholding under chapter 3 or 4 directly to a beneficial owner  
must complete Form 1042-S and treat the beneficial owner  
as the recipient. Boxes 15a through 15i should be left blank.  
The Form 1042-S must also include the appropriate  
chapter 3 and chapter 4 exemption codes, if applicable, in  
boxes 3a and 4a, as well as the appropriate recipient codes  
for the chapter 3 and chapter 4 status codes for a payment  
that is a withholdable payment and an amount subject to  
chapter 3 withholding. A U.S. withholding agent should  
complete boxes 16a through 16e only if it is completing Form  
1042-S as a paying agent acting pursuant to an agreement to  
act as an authorized agent for filing and reporting Forms  
1042 and 1042-S.  
In the case of foreign joint owners, you may provide a  
single Form 1042-S made out to the owner whose status you  
relied upon to determine the applicable rate of withholding  
(the owner subject to the highest rate of withholding). If,  
however, any one of the owners requests its own Form  
1042-S, you must furnish a Form 1042-S to the person who  
requests it. If the request is made after a Form 1042-S was  
filed reporting the payment and tax withheld to only one of  
the joint owners, you should amend the originally filed Form  
1042-S to allocate the payment and tax withheld among the  
joint owners accordingly and provide copies of the amended  
forms to each recipient. If more than one Form 1042-S is  
issued for a single payment, the aggregate amount paid and  
tax withheld that is reported on all Forms 1042-S cannot  
exceed the total amounts paid to joint owners and the tax  
withheld on those payments. In any event, each Form 1042-S  
can only include the recipient information (boxes 13a through  
13d) for one of the beneficial owners. Form 1042-S must not  
be completed with more than one of the joint owners as the  
recipient.  
determining the rate of withholding).  
Payments to a QI (including a QDD), WP, or WT under  
chapter 3 or 4. A U.S. withholding agent that makes  
payments to a QI subject to withholding under chapter 3 or 4  
(whether or not the QI assumes primary withholding  
responsibility), a QI acting as a QDD with respect to a  
payment, a WP, or a WT should complete Form 1042-S in  
most cases, treating the QI, QDD, WP, or WT as the recipient.  
If a payment is being made to a QI that is acting as a QDD  
with respect to the payment, a U.S. withholding agent should  
report the QDD as the recipient showing the QDD as the  
recipient in box 13a (identifying the QDD by the name used  
for the QDD on the Form W-8IMY it provides, which should  
include a branch identifier, if applicable) and using recipient  
code 35 (qualified derivatives dealer) as the chapter 3 status  
nonexempt recipients, later, for exceptions.  
A QI that does not assume primary withholding  
responsibility for chapters 3 and 4 purposes is required to  
provide information regarding the allocations of income  
subject to a particular withholding rate to the withholding  
agent on the withholding statement associated with its Form  
W-8IMY. In such a case, the U.S. withholding agent must  
complete a separate Form 1042-S for each withholding rate  
pool associated with the QI. For purposes of chapter 4, a QI  
may provide a single pool of recalcitrant account holders  
(rather than separate pools for each class). In such a case,  
the withholding agent may use chapter 4 pooled reporting  
code 49 (QI-Recalcitrant Pool-General). A QI that assumes  
primary withholding responsibility, a WP, or a WT is not  
required to provide withholding rate pool information to a  
withholding agent but will report such information directly to  
the IRS.  
A U.S. withholding agent making a withholdable payment  
to an FFI that is a QI (that assumes primary withholding  
responsibility and is not acting as a QDD with respect to the  
payment), a WP, or a WT must use recipient code 12  
(qualified intermediary), 09 (withholding foreign partnership),  
or 11 (withholding foreign trust) as the chapter 3 status code  
and must use recipient code 05 (participating FFI - other), 06  
(participating FFI - reporting Model 2 FFI), 07 (registered  
deemed-compliant FFI - reporting Model 1 FFI), 09  
In the case of joint owners, Form 1042-S can only list  
one of the owners as the recipient in box 13a. Form  
!
CAUTION  
1042-S must not be completed with more than one of  
the joint owners as the recipient.  
Example 1. WA, a U.S. withholding agent, makes a  
withholdable payment of U.S. source dividends to A, a  
foreign individual from whom it has received a Form W-8BEN  
and who is not eligible for a reduced rate of chapter 3  
withholding under a treaty. WA must file a Form 1042-S for A,  
enter “3” in box 3,“06” in box 1 (income code), “00” in box 3a  
13  
Instructions for Form 1042-S (2024)  
     
(registered deemed-compliant FFI - other) for an FFI treated  
as deemed-compliant under an IGA, 31 (nonreporting IGA  
FFI), or, for a payment to a QI, 27 (exempt beneficial owner)  
as the chapter 4 status code. A U.S. withholding agent must  
use chapter 4 recipient code 48 (U.S. Payees Pool) when  
reporting a reportable amount allocated to a chapter 4  
withholding rate pool of U.S. payees of a QI and report the  
chapter 3 recipient code 12 (qualified intermediary). A U.S.  
withholding agent must not use any chapter 3 pooled  
reporting code (codes 27 through 32) as such codes are only  
to be used by a withholding agent that is a QI, WP, or WT.  
See Amounts Paid by QIs, later, and the instructions for  
boxes 13f and 13g, later. Use of an inappropriate recipient  
code may cause a notice to be generated.  
recipient code 05 (participating FFI-other) as the chapter 4  
status code. WA must also complete a Form 1042-S for the  
dividends allocated to the chapter 4, 30% withholding rate  
pool, showing “4” in box 3, chapter 3 exemption code 12  
(payee subjected to chapter 4 withholding) in box 3a, “00.00”  
in box 3b (chapter 3 tax rate), “00” in box 4a (chapter 4  
exemption code), and “30.00” in box 4b with QI as the  
recipient in box 13a, and recipient code 12 (qualified  
intermediary) as the chapter 3 status code, and recipient  
code 49 (QI-Recalcitrant Pool-General) as the chapter 4  
status code.  
Payments allocated by QIs, or presumed made, to U.S.  
nonexempt recipients. A QI may provide Forms W-9 or  
other information regarding U.S. nonexempt recipients that  
the QI (or other entity maintaining the account) is required to  
report under chapter 61 and for which the QI does not  
assume primary Form 1099 reporting responsibility. A QI may  
also provide information regarding U.S. nonexempt recipients  
on whom the QI elects to backup withhold under section  
3406 instead of withholding under chapter 4 on payments  
made to an account holder. If Forms W-9 or other information  
is provided together with information allocating all or a part of  
the payment to U.S. nonexempt recipients, you must report  
income allocable to the U.S. nonexempt recipients on the  
appropriate Form 1099 and not on Form 1042-S even though  
you are paying that income to a QI. The QI may also provide  
information regarding U.S. nonexempt recipients in a  
chapter 4 withholding rate pool that the withholding agent  
must report on Form 1042-S.  
A QI is generally required to act in such capacity only  
for designated accounts for purposes of chapters 3,  
!
CAUTION  
4, and 61. Therefore, such an entity may also provide  
a Form W-8IMY in which it certifies that it is acting as an NQI  
for other accounts and, if it is an FFI that is receiving a  
withholdable payment, that it is a participating FFI, registered  
deemed-compliant FFI, or FFI treated as deemed-compliant  
under an IGA. A U.S. withholding agent that receives a Form  
W-8IMY on which the foreign person providing the form  
indicates that it is not acting as a QI may not treat the foreign  
person as a recipient except as otherwise provided in these  
instructions. A withholding agent must not use the EIN that a  
QI provides in its capacity as such to report payments that  
are treated as made to an entity in its capacity as an NQI. In  
that case, use the GIIN, if any, and EIN that is provided by the  
entity on its Form W-8IMY in which it claims that it is acting as  
an NQI or flow-through entity.  
You may also be required under the presumption rules to  
treat a payment made to a QI as made to a payee that is a  
U.S. nonexempt recipient from which you must withhold on  
the payment under the backup withholding provisions. In this  
case, you must report the payment on the appropriate Form  
1099. See the General Instructions for Certain Information  
Returns, available at IRS.gov/1099GeneralInstructions.  
Example 3. WA, a U.S. withholding agent, makes a  
withholdable payment of U.S. source dividends to QI, a  
qualified intermediary and registered deemed-compliant FFI  
that is a local FFI described in Regulations section  
Note. A withholding agent is required to use chapter 4  
reporting pool codes as the chapter 4 status code in the case  
of withholdable payments made to:  
A QI that does not assume primary withholding  
responsibility;  
A participating FFI or registered deemed-compliant FFI  
that is an NQI, NWP, or NWT; or  
An NQI, NWP, or NWT (other than a nonparticipating FFI)  
1.1471-5(f)(1)(i)(A). QI provides WA with a valid Form  
W-8IMY certifying that it is transmitting Forms W-9 for U.S.  
nonexempt recipients and with which it associates a  
withholding statement that allocates 95% of the payment to a  
chapter 3, 15% withholding rate pool with a single chapter 4  
exemption code, and 5% of the payment to C, a U.S.  
individual. QI also provides WA with C's Form W-9. C is a  
direct account holder of QI and a U.S. citizen that is a  
resident of QI's local jurisdiction that QI is not required to  
report under chapter 4 (see Regulations section 1.1471-5(f)  
(1)(i)(A)) and thus cannot be included in a chapter 4  
withholding rate pool of U.S. payees. See Regulations  
section 1.6049-4(c)(4). WA must complete a Form 1042-S,  
showing QI as the recipient in box 13a, and WA should use  
recipient code 12 (qualified intermediary) as the chapter 3  
status code and recipient code 09 (registered  
that provides a pool of nonparticipating FFIs,  
if the QI, NQI, NWP, or NWT provides chapter 4 withholding  
rate pool information in the withholding statement associated  
with its Form W-8IMY. See Amounts paid to an NQI or  
presumption rules under Regulations section 1.1471-3(f)  
when such information is not provided for a withholdable  
payment made to an entity.  
Example 2. WA, a U.S. withholding agent, makes a  
withholdable payment of U.S. source dividends to QI, a  
qualified intermediary that does not assume primary chapters  
3 and 4 withholding responsibility and that is a participating  
FFI. QI provides WA with a valid Form W-8IMY with which it  
associates a withholding statement that allocates 95% of the  
payment to a chapter 3, 15% withholding rate pool with a  
single chapter 4 exemption code, and 5% of the payment to a  
chapter 4, 30% withholding rate pool of recalcitrant account  
holders. WA must complete a Form 1042-S for the dividends  
allocated to the chapter 3, 15% withholding rate pool,  
showing “3” in box 3, “00” in box 3a (chapter 3 exemption  
code), “15.00” in box 3b (chapter 3 tax rate), chapter 4  
exemption code 15 (payee not subject to chapter 4  
deemed-compliant FFI – other) as the chapter 4 status code  
for the dividends allocated to the 15% withholding rate pool.  
WA must also complete a Form 1099-DIV issued to C  
reporting the part of the dividend allocated to C.  
Example 4. WA, a withholding agent, makes a  
withholdable payment of U.S. source dividends to QI, a  
qualified intermediary that is a reporting Model 1 FFI. QI  
provides WA with a valid Form W-8IMY with which it  
associates a withholding statement that allocates 40% of the  
payment to a chapter 3, 15% withholding rate pool and 40%  
withholding) in box 4a, “00.00” in box 4b (chapter 4 tax rate),  
and QI as the recipient in box 13a along with recipient code  
12 (qualified intermediary) as the chapter 3 status code, and  
14  
Instructions for Form 1042-S (2024)  
 
to a chapter 3, 30% withholding rate pool. QI does not  
provide any withholding rate pool information regarding the  
remaining 20% of the payment. WA must apply the  
Although a payment to a disclosing QI is reported as  
made to a specified account holder of the QI (as the  
recipient), a U.S. withholding agent is required to  
TIP  
presumption rule to the part of the payment (20%) that has  
not been allocated. Under the presumption rules of  
provide a recipient copy of the Form 1042-S to the disclosing  
QI maintaining the direct account for the partner in the PTP  
(in addition to the recipient copy issued to the account holder  
of the QI receiving the payment).  
Regulations section 1.1471-3(f) for a withholdable payment  
made to an entity, 20% of the payment is treated as paid to a  
nonparticipating FFI. WA must complete three Forms 1042-S.  
First, a Form 1042-S for dividends subject to 15%  
Substitute dividends paid to qualified securities lenders  
(QSLs). A withholding agent that makes payments of  
substitute dividends to a QSL should complete Form 1042-S  
treating the QSL as the recipient. Use income code 34 or 53.  
Use recipient code 13 or 14 (qualified securities lender –  
qualified intermediary or qualified securities lender – other)  
as the chapter 3 status code and include the applicable  
chapter 4 status code of the QSL.  
withholding, showing “3” in box 3, “00” in box 3a (chapter 3  
exemption code), “15.00” in box 3b (chapter 3 tax rate),  
chapter 4 exemption code 15 (payee not subject to chapter 4  
withholding) in box 4a, “00.00” in box 4b (chapter 4 tax rate),  
QI as the recipient in box 13a, recipient code 12 (qualified  
intermediary) as the chapter 3 status code, and recipient  
code 07 (registered deemed-compliant FFI-reporting Model 1  
FFI) as the chapter 4 status code (because the payment is a  
withholdable payment). Second, a Form 1042-S for dividends  
subject to 30% withholding, showing “3” in box 3, “00” in  
box 3a (chapter 3 exemption code), “30.00” in box 3b  
(chapter 3 tax rate), chapter 4 exemption code 15 (payee not  
subject to chapter 4 withholding) in box 4a, “00.00” in box 4b  
(chapter 4 tax rate), QI as the recipient in box 13a, recipient  
code 12 (qualified intermediary) as the chapter 3 status code,  
and recipient code 07 (registered deemed-compliant FFI –  
reporting Model 1 FFI) as the chapter 4 status code. Third, a  
Form 1042-S for dividends subject to 30% withholding,  
showing “4” in box 3, chapter 3 exemption code 12 (payee  
subjected to chapter 4 withholding) in box 3a, “00.00” in  
box 3b (chapter 3 tax rate), “00” in box 4a (chapter 4  
exemption code), “30.00” in box 4b (chapter 4 tax rate),  
“Unknown Recipient” as the recipient name in box 13a,  
recipient code 21 (unknown recipient) as the chapter 3 status  
code, and recipient code 29 (unknown recipient) as the  
chapter 4 status code. Also, QI's name, status codes, country  
code, address, GIIN, and QI-EIN must be entered in boxes  
15a through 15i.  
The withholding agent is not required to withhold on a  
substitute dividend payment if it receives, at least annually, a  
certificate from the QSL that includes a statement with the  
following information.  
The recipient of the substitute dividend is a QSL.  
With respect to the substitute dividend it receives from the  
withholding agent, the QSL states that it will withhold and  
remit or pay the proper amount of U.S. gross-basis tax.  
If the withholding agent receives a certificate from the QSL  
that includes a statement that contains the above information,  
use chapter 3 exemption code 11.  
If the QSL is also a QI with primary withholding  
responsibility, use chapter 3 exemption code 11 and not  
exemption code 06 for chapter 3 purposes.  
Amounts paid to certain U.S. branches or territory FIs.  
A U.S. withholding agent making a payment to a U.S. branch  
of an FFI or NFFE completes Form 1042-S as follows.  
If a withholding agent makes a payment to a U.S. branch  
that has provided the withholding agent with a Form W-8IMY  
stating that it has agreed to be treated as a U.S. person, the  
U.S. withholding agent treats the U.S. branch as the recipient  
using chapter 3 recipient code 05 (U.S. branch - treated as a  
U.S. person) and chapter 4 recipient code 17 (U.S. branch -  
treated as a U.S. person).  
Payment to QI of PTP distributions or amounts realized.  
A U.S. withholding agent making a payment to a QI that is  
subject to withholding on a PTP distribution or an amount  
realized subject to reporting for section 1446(f) purposes  
should generally treat the QI as the recipient and report as  
described directly above for a U.S. withholding agent making  
payments to a QI for chapters 3 and 4 purposes (including  
when the QI does not assume primary withholding  
If a withholding agent makes a payment to a U.S. branch  
that has provided a Form W-8IMY to transmit information  
regarding its chapter 4 reporting pools when the payment is a  
withholdable payment or the branch provides a chapter 4  
withholding rate pool of U.S. payees and, to the extent  
applicable, recipient specific information for chapter 3  
purposes, the U.S. withholding agent must complete a  
separate Form 1042-S for each chapter 4 reporting pool  
treating the U.S. branch as the recipient or, for chapter 3  
purposes, for each recipient that is a foreign person whose  
documentation is associated with the U.S. branch's Form  
W-8IMY. If a payment cannot be reliably associated with  
recipient documentation, the U.S. withholding agent must  
complete Form 1042-S in accordance with the presumption  
rules. If a U.S. branch not treated as a U.S. person fails to  
certify that it will meet the requirements under Regulations  
section 1.1471-4(d)(2)(iii)(C), a withholding agent must  
report the branch as a nonparticipating FFI.  
responsibly and provides withholding rate pool information).  
In a case of a QI acting as a disclosing QI for a payment of a  
PTP distribution or an amount realized subject to reporting  
under section 1446(f), however, a U. S. withholding agent  
should report the account holder of the QI as the recipient  
and the QI as a disclosing QI (using chapter 3 status code 39  
and reporting the QI's information in boxes 15a through 15i,  
including its QI-EIN). In a case in which a U.S withholding  
agent makes a payment of a PTP distribution or amount  
realized through multiple QIs acting as disclosing QIs, the  
withholding agent should report in boxes 15a through 15i with  
respect to the disclosing QI maintaining a direct account for  
the partner in the PTP. For payments of PTP distributions  
made to a QI, the U.S. withholding agent should report these  
payments with respect to the PTP making the distribution to  
the extent required as discussed in Publicly Traded  
earlier.  
If a withholding agent cannot reliably associate a payment  
with a Form W-8IMY from a U.S. branch, and if a withholding  
agent has an EIN for the branch, then the payment may be  
reported on a single Form 1042-S treating the U.S. branch as  
the recipient and reporting the income as ECI.  
If a withholding agent makes a payment to a territory FI  
acting as an intermediary or that is a flow-through entity, the  
15  
Instructions for Form 1042-S (2024)  
 
withholding agent should report on Form 1042-S using the  
chapter 3 status codes for payments to U.S. branches (with  
the code used depending on whether the territory FI agrees  
to be treated as a U.S. person). If the territory FI agrees to be  
treated as a U.S. person, the withholding agent should  
similarly use the chapter 3 exemption code for a U.S. branch  
treated as a U.S. person. For chapter 4 purposes, the  
withholding agent should use the applicable chapter 4 status  
code for a territory FI (with the code used depending on  
whether the territory FI agrees to be treated as a U.S.  
person). In any case in which a payment is made to a territory  
FI described in this paragraph, the withholding agent should  
report the applicable territory in which the FI is resident for  
purposes of box 13b (recipient's country code).  
recipient. The result would be the same if LLC was a  
domestic entity.  
A disregarded entity can, however, claim to be the  
beneficial owner of a payment if it is a hybrid entity claiming  
treaty benefits. See Form W-8BEN and its instructions for  
more information. If a disregarded entity claims on a valid  
Form W-8BEN-E to be the beneficial owner, the U.S.  
withholding agent must complete a Form 1042-S treating the  
disregarded entity as a recipient and using recipient code 26  
(hybrid entity making treaty claim) as the chapter 3 status  
code and the applicable recipient code for the chapter 4  
status code of the single owner when the payment is a  
withholdable payment and chapter 4 withholding does not  
apply.  
Amounts paid to a foreign estate. If a U.S. withholding  
agent makes a payment to a foreign estate, a Form 1042-S  
must be completed showing the estate as the recipient. Use  
recipient code 17 (estate) as the chapter 3 status code and  
the applicable recipient code for the chapter 4 status code.  
A hybrid entity with multiple owners may also claim treaty  
benefits. See Form W-8BEN-E and its instructions for more  
information on documentation requirements that apply in  
such cases. If a hybrid entity treated as a resident of a treaty  
country claims treaty benefits on a valid Form W-8BEN-E  
associated with a withholdable payment (and chapter 4  
withholding does not apply with respect to any of its owners  
to such payment or portion of such payment), the U.S.  
withholding agent should complete a Form 1042-S treating  
the hybrid entity as a recipient, use code 26 (hybrid entity  
making treaty claim) as the chapter 3 recipient status code,  
and leave blank the chapter 4 recipient status code. To the  
extent, however, that a portion of a withholdable payment is  
allocated to an owner of the hybrid entity for which chapter 4  
withholding must be applied, the U.S. withholding agent must  
issue a separate Form 1042-S to such owner using the  
applicable recipient codes for the owner's chapters 3 and 4  
status codes and report the hybrid entity as the intermediary.  
The withholding agent must do so for each such owner for  
which chapter 4 withholding applies and must exclude  
amounts allocable to such owners from the Form 1042-S  
issued to the hybrid entity.  
Dual claims. A U.S. withholding agent may make a payment  
to a foreign entity (for example, a hybrid entity) that is  
simultaneously claiming an exemption from chapter 4  
withholding and a reduced rate of tax under chapter 3 on its  
own behalf for a part of the payment and an exemption from  
chapter 4 withholding and a reduced rate of tax under  
chapter 3 on behalf of persons in their capacity as interest  
holders in that entity on the remaining part. If the claims are  
consistent and the withholding agent has accepted the  
multiple claims, a separate Form 1042-S must be filed for the  
entity for those payments for which the entity is treated as  
claiming a reduced rate of withholding, and separate Forms  
1042-S must be filed for each of the interest holders for those  
payments for which the interest holders are claiming a  
reduced rate of withholding. The Forms 1042-S must include  
the chapter 4 status of the payee (including the applicable  
chapter 4 exemption). If the claims are consistent but the  
withholding agent has not chosen to accept the multiple  
claims, or if the claims are inconsistent, a separate Form  
1042-S must be filed for the person(s) being treated as the  
recipient(s).  
If an owner of a reverse hybrid entity claims treaty benefits  
on a valid Form W-8BEN-E or W-8BEN (and chapter 4  
withholding does not apply with respect to the payment to the  
reverse hybrid entity), the U.S. withholding agent should  
issue a Form 1042-S for the portion of the payment allocable  
to each such owner treating the owner as the recipient, using  
the applicable recipient codes for the chapters 3 and 4 status  
codes, and report the reverse hybrid entity as the  
Special instructions for U.S. trusts and estates. Report  
the entire amount of income subject to reporting, regardless  
of estimates of distributable net income.  
intermediary in boxes 15a through 15i. In such a case, the  
U.S. withholding agent must issue a Form 1042-S to the  
reverse hybrid entity for the remainder of the payment  
treating such entity as the recipient and using the applicable  
chapters 3 and 4 status codes. However, if chapter 4  
withholding applies with respect to the payment to the  
reverse hybrid entity, the U.S. withholding agent must instead  
issue a Form 1042-S to the reverse hybrid entity for the entire  
payment and withhold accordingly.  
Payments Made to Persons Who Are Not  
Recipients  
Disregarded entities and hybrid entities. If a U.S.  
withholding agent makes a payment to a disregarded entity  
that is not a hybrid entity making a treaty claim, and receives  
a valid Form W-8BEN-E or W-8ECI from a foreign person that  
is the single owner of the disregarded entity, the withholding  
agent must file a Form 1042-S in the name of the foreign  
single owner. The TIN on the Form 1042-S, if required, must  
be the foreign single owner's TIN. However, in box 13h,  
include the GIIN of the disregarded entity provided in Part II  
of Form W-8BEN-E if the owner is an FFI.  
Example 6. WA, a withholding agent, makes a  
withholdable payment of interest to FP, a hybrid entity  
organized in Country X. FP is treated as a partnership under  
the Internal Revenue Code but is treated as a company  
resident in Country X for Country X purposes. WA has a  
Form W-8BEN-E from FP on which it claims treaty benefits.  
WA also has a Form W-8IMY from FP that includes its  
chapters 3 and 4 statuses and a W-8BEN-E from each of  
FP's owners, FC1 and FC2, which certify that FC1 is a PFFI  
and FC2 is a nonparticipating FFI. The attached withholding  
statement allocates 80% of the payment to FC1 and 20% of  
the payment to FC2. WA must issue a Form 1042-S for 80%  
Example 5. WA, a withholding agent, makes a  
withholdable payment of interest to LLC, a foreign limited  
liability company that is not an FFI. LLC is wholly owned by  
FC, a foreign corporation that is an excepted nonfinancial  
foreign entity. LLC is treated as a disregarded entity. WA has  
a Form W-8BEN-E from FC on which it states that it is the  
beneficial owner of the income paid to LLC. WA reports the  
interest payment on Form 1042-S showing FC as the  
16  
Instructions for Form 1042-S (2024)  
 
of the payment to FP as the recipient using recipient code 26  
(hybrid entity making treaty claim) as the chapter 3 status  
code, and leaving blank the recipient code for the chapter 4  
status code. WA must withhold under chapter 4 on the  
remaining 20% of the payment allocated to FC2 and issue a  
Form 1042-S to FC2 as the recipient using recipient code 15  
(corporation) as the chapter 3 status code and recipient code  
15 (nonparticipating FFI) as the chapter 4 status code and  
must report FP as the intermediary in boxes 15a through 15i.  
Amounts paid to an NQI or flow-through entity of with-  
holdable payments. If a U.S. withholding agent makes a  
payment to an NQI or a flow-through entity (other than a  
nonparticipating FFI) with respect to a withholdable payment,  
it must complete a separate Form 1042-S for each recipient  
on whose behalf the NQI or flow-through entity acts as  
indicated by its withholding statement and the documentation  
associated with its Form W-8IMY. If a payment is made  
through tiers of NQIs or flow-through entities, the withholding  
agent must nevertheless complete Form 1042-S for the  
recipients to which the payments are remitted. A withholding  
agent completing Form 1042-S for a recipient that receives a  
payment through an NQI or a flow-through entity must include  
in boxes 15a through 15i of Form 1042-S the name, country  
code, address, TIN (if any), GIIN (if any), and status codes of  
the NQI or flow-through entity from whom the recipient  
directly receives the payment.  
If, however, a U.S. withholding agent makes withholdable  
payments to an NQI or a flow-through entity that is a  
participating FFI or registered deemed-compliant FFI that is  
allocable to a chapter 4 withholding rate pool as indicated by  
the FFI’s withholding statement, the U.S. withholding agent  
should complete a separate Form 1042-S for each chapter 4  
reporting pool (that is, pool of recalcitrant account holders,  
pool of nonparticipating FFIs, or pool of payees that are U.S.  
persons) treating the participating FFI or registered  
deemed-compliant FFI as the recipient and must include the  
GIIN and chapter 3 status code of the FFI and the applicable  
chapter 4 reporting pool code as the chapter 4 status code. If  
a payment is made through tiers of NQIs or flow-through  
entities that are participating FFIs or registered  
documentation from a recipient, the withholding agent must  
follow the appropriate presumption rules for that payment  
which, if the payment is a withholdable payment, will  
generally require the withholding agent to withhold 30%  
under chapter 4 because such payment is presumed made to  
a nonparticipating FFI. See Regulations section 1.1471-3(f)  
(5). For this purpose, if the allocation information provided to  
the withholding agent indicates an allocation of more than  
100% of the payment, then no part of the payment should be  
considered to be associated with a Form W-8, Form W-9, or  
other appropriate documentation. The Form 1042-S should  
be completed by entering “Unknown Recipient” in box 13a  
and recipient code 21 (unknown recipient) as the chapter 3  
status code and recipient code 29 (unknown recipient) as the  
chapter 4 status code. Also, the name, country code,  
address, TIN (if any), GIIN (if any), and status codes of the  
FFI should be entered in boxes 15a through 15i.  
If a U.S. withholding agent makes a withholdable payment  
to an NQI or flow-through entity that is a nonparticipating FFI,  
the withholding agent must treat the payments as made to an  
unknown recipient regardless of whether it can reliably  
associate the payment, or any part of the payment, with a  
valid withholding certificate (Form W-8 or W-9) or other valid  
appropriate documentation from a recipient (see Regulations  
section 1.1471-3(d)(8)). The withholding agent should  
complete a Form 1042-S showing “Unknown Recipient” in  
box 13a and recipient code 21 (unknown recipient) as the  
chapter 3 status code and recipient code 29 (unknown  
recipient) as the chapter 4 status code. Also, the name,  
country code, address, chapter 4 status code, and TIN (if  
any) of the nonparticipating FFI should be entered on Form  
1042-S in boxes 15a through 15i.  
If, however, an NQI or flow-through entity that is a  
nonparticipating FFI provides documentation described in  
Regulations section 1.1471-3(d)(8)(ii) to establish that the  
withholdable payment or a portion of the payment is  
beneficially owned by an exempt beneficial owner, then the  
withholding agent should complete a Form 1042-S for each  
exempt beneficial owner showing the chapter 4 exemption  
code 15 (payee not subject to chapter 4 withholding), the  
exempt beneficial owner as the recipient in box 13a, and the  
name, country code, address, chapter 4 status code, and TIN  
(if any) of the nonparticipating FFI in boxes 15a through 15i.  
For any remaining portion of the payment, the withholding  
agent should complete a Form 1042-S to an unknown  
recipient as described directly above.  
deemed-compliant FFIs, the withholding agent must  
nevertheless complete Form 1042-S for each chapter 4  
reporting pool to which the payments are allocated and must  
report, as the recipient, the FFI from whom the recipients  
included in the chapter 4 reporting pool directly receive the  
payment.  
Pro-rata reporting to NQI. If the withholding agent has  
agreed that an NQI (other than a nonparticipating FFI) may  
provide information allocating a payment to its account  
holders under the alternative procedure of Regulations  
section 1.1441-1(e)(3)(iv)(D) (no later than February 14,  
2025) and the NQI fails to allocate more than 10% of the  
payment in a withholding rate pool to the specific recipients in  
the pool or an applicable chapter 4 withholding rate pool, the  
withholding agent must file a Form 1042-S for each recipient  
in the pool on a pro-rata basis. The withholding agent must  
check box 15 (pro-rata basis reporting) on each Form  
1042-S. For example, if there are four account holders in a  
withholding rate pool that receives a $100 payment and the  
NQI fails to allocate more than $10 of the payment, the  
withholding agent must file four Forms 1042-S, one for each  
account holder in the pool, showing $25 of the income to  
each and box 15 checked. If, instead, the NQI fails to timely  
allocate 10% or less of the payment in a withholding rate pool  
to the specific recipients in a pool, the withholding agent must  
file a Form 1042-S for each recipient for which it has  
Example 7. WA, a withholding agent, makes a  
withholdable payment of interest to FFI1, a reporting Model 1  
FFI. FFI1 provides WA with a valid Form W-8IMY with which it  
associates a withholding statement that allocates 80% of the  
payment to FFI2, a participating FFI, and 20% of the payment  
to a pool of nonparticipating FFIs. FFI1 also provides WA with  
FFI2's Form W-8IMY with which it associates a withholding  
statement that allocates 100% of the payment to recalcitrant  
pool-no U.S. indicia. WA must complete a Form 1042-S for  
the interest allocated to a pool of nonparticipating FFIs with  
FFI1 as the recipient and must complete another Form  
1042-S for the interest allocated to a pool of recalcitrant  
account holders-no U.S. indicia with FFI2 as the recipient.  
If a U.S. withholding agent makes a withholdable payment  
to an NQI or flow-through entity that is a participating FFI or  
deemed-compliant FFI, and cannot reliably associate the  
payment, or any part of the payment, with a withholding  
statement, or to the extent required, a valid withholding  
certificate (Form W-8 or W-9) or other valid appropriate  
17  
Instructions for Form 1042-S (2024)  
   
allocation information and report the unallocated part of the  
payment on a Form 1042-S as made to an “unknown  
recipient.In this case, the withholding agent does not check  
box 15 on any of the Forms 1042-S.  
to withholding on a PTP distribution other than under section  
1446 should generally report the NQI and the recipient of the  
distribution on Form 1042-S in accordance with the  
requirements applicable to withholdable payments made to  
NQIs (described earlier). In the case of a PTP distribution  
paid to a flow-through entity, however, the withholding agent  
should report the flow-through entity as the recipient for an  
amount subject to section 1446(a) unless it is a grantor trust  
(with the trust grantors or owners treated as the recipients). In  
either case the U.S. withholding agent must provide a Form  
1042-S that is associated with the PTP distribution to the  
extent that PTP information is required to be included on  
Form 1042-S in accordance with Boxes 16a Through 16e,  
Payments allocated, or presumed made, to U.S.  
nonexempt recipients. You may be given Forms W-9 or  
other information regarding U.S. nonexempt recipients from  
an NQI or flow-through entity together with information  
allocating all or a part of the payment to U.S. nonexempt  
recipients. You must report income allocable to a U.S.  
nonexempt recipient on the appropriate Form 1099 and not  
on Form 1042-S, even though you are paying that income to  
an NQI or a flow-through entity. If, however, a participating  
FFI or registered deemed-compliant FFI provides a  
withholding statement allocating all or part of the payment to  
a chapter 4 withholding rate pool of U.S. payees along with  
the certification provided on Form W-8IMY required for  
reporting such pool (as described in Regulations section  
1.1471-3(c)(3)(iii)(B)), you must report the income allocable  
to such pool on Form 1042-S.  
Example 8. FP is an NWP (flow-through entity) that is a  
certified deemed-compliant FFI. FP receives from WA, a U.S.  
withholding agent, a withholdable payment of interest  
described by income code 01 (interest paid by U.S. obligors –  
general). FP has three partners, A, B, and C, all of whom are  
individuals. FP provides WA with a Form W-8IMY certifying  
that it is transmitting Forms W-9 for U.S. nonexempt  
A U.S. withholding agent making a payment to an NQI of  
an amount realized subject to reporting for purposes of  
section 1446(f) (including on a PTP distribution) should  
generally treat the recipient as an unknown recipient because  
section 1446(f) withholding applies to an NQI without regard  
to the statuses of its account holders receiving the amount  
realized. A single Form 1042-S may be issued to the NQI in  
this case regardless of the number of NQI account holders. If  
the withholding agent agrees to report the NQI account  
holders on Form 1042-S, however, it may report the amount  
realized and withholding applied under section 1446(f) with  
respect to each NQI account holder on Form 1042-S. See the  
instructions for Form W-8IMY for the requirements for such  
an agreement (including that the withholding agent issue a  
recipient copy of the Form 1042-S to the NQI with respect to  
each Form 1042-S issued to an NQI account holder for an  
amount realized).  
recipients and Forms W-8BEN from A and B and a Form W-9  
from C, a U.S. nonexempt recipient. In addition, FP provides  
a complete withholding statement in association with its Form  
W-8IMY that allocates the interest payments among A, B,  
and C. WA must file two Forms 1042-S, one each for A and  
B, treating FP as the intermediary in boxes 15a through 15i.  
WA should also file a Form 1099-INT for C.  
Example 9. The facts are the same as in Example 8,  
except that FP does not provide any documentation from its  
partners. Because WA cannot reliably associate the  
withholdable payment of interest with documentation from a  
payee, it must apply the presumption rules of Regulations  
section 1.1471-3(f) to treat the interest as paid to a  
nonparticipating FFI. A Form 1042-S should be completed by  
entering “4” in box 3, “Unknown Recipient” in box 13a,  
recipient code 21 (unknown recipient) as the chapter 3 status  
code, and recipient code 29 (unknown recipient) as the  
chapter 4 status code. Also, the name, country code,  
address, status codes, and TIN (if any) of FP should be  
entered in boxes 15a through 15i.  
A U.S. withholding agent making a payment to a flow  
through entity of an amount realized reportable on Form  
1042-S must report the flow-through entity as the recipient  
except to the extent it is treated as a grantor trust (in which  
case the trust’s grantor or owner is the recipient).  
Amounts Paid by QIs  
In general. For purposes of chapter 4, a QI must complete a  
Form 1042-S for payments withheld under chapter 4  
determined in accordance with the income codes used to file  
Form 1042-S. A QI that is a participating FFI or registered  
deemed-compliant FFI may use the chapter 4 pooled  
reporting codes 42 through 48 to allocate payments made to  
its recalcitrant account holders, payees that are  
nonparticipating FFIs, and payees that are U.S. persons. A QI  
should not use chapter 4 reporting pool 49 (QI- Recalcitrant  
Pool-General) to report its accounts but may use it to report  
accounts maintained by another QI. A QI that is an NFFE or  
an FFI treated as deemed-compliant under an applicable IGA  
(as described in Regulations section 1.1441-1(e)(5)(ii)(A))  
may use chapter 4 reporting pool code 47 to report payments  
allocable to a pool of nonparticipating FFIs. A QI may also  
use the chapter 4 pooled reporting codes to report payments  
allocable to account holders, payees, or owners of another  
participating FFI or registered deemed-compliant FFI that is  
an NQI, NWP, or NWT, and it must provide its chapter 4  
withholding rate pools on its withholding statement. In such  
case, the QI must include the NQI, NWP, or NWT as the  
recipient in box 13a and the applicable recipient code for  
such entity as the chapter 3 status code. For payments  
subject to chapter 3 withholding that are exempt from  
chapter 4 withholding and made by the QI directly to foreign  
Example 10. The facts are the same as in Example 9,  
except that FP is a participating FFI and provides WA with a  
Form W-8IMY certifying that it is reporting its U.S. accounts  
under chapter 4 and a withholding statement allocating 33%  
of the payment to a pool of U.S. payees. With respect to the  
U.S. pool of payees, WA must file a Form 1042-S showing FP  
as the recipient in box 13a and include FP's GIIN, recipient  
code 08 as the chapter 3 status code (partnership other than  
a withholding foreign partnership or publicly traded  
partnership), and recipient code 48 (U.S. payees pool) as the  
chapter 4 status code. WA should enter “3” in box 3 as the  
chapter indicator, leave boxes 3a and 3b blank, and enter  
exemption code 18 (U.S. payees of a participating FFI or  
registered deemed-compliant FFI) in box 4a, and “00.00” in  
box 4b.  
Amounts paid to an NQI or flow-through entity of  
amounts realized and PTP distributions. A U.S.  
withholding agent making a payment to an NQI that is subject  
18  
Instructions for Form 1042-S (2024)  
   
beneficial owners (or that are treated as paid directly to  
beneficial owners), the QI may report on the basis of  
chapter 3 reporting pools, in most cases. A QI may not report  
on the basis of reporting pools in the circumstances  
For payments not subject to chapter 4 withholding, a QI may  
use a single chapter 4 exemption code 15 (payee not subject  
to chapter 4 withholding) and a single chapter 3 reporting  
pool code 27 (withholding rate pool – general) as the  
chapter 3 status code for all reporting pools, except for  
amounts paid to foreign tax-exempt recipients for which  
chapter 3 reporting pool code 28 should be used. Note,  
however, that a QI should use recipient code 28 only for  
pooled account holders that have claimed an exemption  
based on their tax-exempt status and not some other  
exemption (tax treaty or other Internal Revenue Code  
section). If a QI uses a chapter 3 pooled reporting code  
(because chapter 4 withholding does not apply and the QI is  
not allocating the payment to a U.S. pool of payees), it should  
leave blank the recipient code for the chapter 4 status code.  
income code 06 (dividends paid by U.S.  
corporations-general) in box 1, code 12 (payee subjected to  
chapter 4 withholding) in box 3a (chapter 3 exemption code),  
“00.00” in box 3b (chapter 3 tax rate), “00” in box 4a  
(chapter 4 exemption code), “30.00” in box 4b (chapter 4 tax  
rate), “recalcitrant pool – U.S. indicia” or similar designation in  
box 13a (recipient's name), chapter 4 recipient code 43  
(recalcitrant pool-U.S. indicia) as the chapter 4 status code in  
box 13g, and a blank chapter 3 status code in box 13f.  
Under the terms of its QI agreement with the IRS, a  
QI that is an FFI may be required to report the  
!
CAUTION  
amounts paid to U.S. nonexempt recipients on Form  
1099 or Form 8966 using the name, address, and TIN of the  
payee to the extent those items of information are known.  
These amounts must be reported on Form 1042-S if  
allocated to a chapter 4 withholding rate pool of U.S. payees.  
A QI acting as a QDD must separately report on Forms  
1042-S payments that it makes in its QDD capacity. The QI  
should report the name of the QDD that makes the payment  
as the withholding agent in box 12d (following the naming  
protocol used for applying to be a QDD) and should use  
withholding agent code 35 as the chapter 3 status code.  
Similarly, if the QDD is a partnership or branch of a  
partnership, that QDD must separately report allocations to  
its partners of QDD items on Forms 1042-S, entering the  
name of the QDD as the withholding agent in box 12d  
(following the naming protocol).  
Example 11. QI, a qualified intermediary and  
participating FFI, has four direct account holders, A and B,  
foreign individuals, and X and Y, foreign corporations. The  
withholdable payments made to these direct account holders  
are exempt from chapter 4 withholding because of the  
chapter 4 status of each account holder. A and X are  
residents of a country with which the United States has an  
income tax treaty and have provided documentation that  
establishes that they are entitled to a lower treaty rate of 15%  
on withholding of dividends from U.S. sources. B and Y are  
not residents of a treaty country and are subject to 30%  
withholding on dividends. QI receives U.S. source dividends  
on behalf of its four customers. QI must file one Form 1042-S  
for the 15% withholding rate pool. This Form 1042-S must  
show income code 06 (dividends paid by U.S. corporations –  
general) in box 1, “00” in box 3a (chapter 3 exemption code),  
“15.00” in box 3b (chapter 3 tax rate), chapter 4 exemption  
code 15 (payee not subject to chapter 4 withholding) in  
box 4a, “00.00” in box 4b (chapter 4 tax rate), “Withholding  
rate pool” in box 13a (recipient's name), chapter 3 reporting  
pool code 27 (withholding rate pool – general) as the  
chapter 3 status code, and a blank chapter 4 status code. QI  
must also file one Form 1042-S for the 30% withholding rate  
pool that contains the same information as the Form 1042-S  
filed for the 15% withholding rate pool, except that it will show  
“30.00” in box 3b (chapter 3 tax rate).  
A QI acting as a QDD with respect to a payment may  
only use chapter 3 pooled reporting codes 27 and  
!
CAUTION  
28.  
Amounts Paid to PAIs  
In most cases, a QI must report payments subject to  
withholding under chapter 3 or 4 made to each private  
arrangement intermediary (PAI) (defined under Definitions,  
earlier) as if the PAI's direct account holders were its own. For  
purposes of chapter 4, a QI that is a participating FFI,  
registered deemed-compliant FFI, or an FFI treated as  
deemed-compliant under an applicable IGA (as described in  
Regulations section 1.1441-1(e)(5)(ii)(A)) may use the  
chapter 4 reporting pool code 47 to allocate payments made  
to the PAI's payees that are nonparticipating FFIs, and may  
treat the PAI as the recipient on Form 1042-S with respect to  
each such pool. For chapter 3 purposes, if the payment is  
made directly by the PAI to the recipient, the QI may report  
the payment on a pooled basis. A QI may not, however,  
report on a pooled basis as described in the preceding  
sentence when acting as a QDD because, under the QI  
agreement, a QI may not enter into a private arrangement  
with any account holder for which it acts as a QDD. A  
separate Form 1042-S is required for each withholding rate  
pool of each PAI (unless the QI is acting as a QDD with  
respect to the payment). However, the QI must include the  
name and address of the PAI and use pooled reporting code  
29 (PAI withholding rate pool-general) or 30 (PAI withholding  
rate pool-exempt organization) as the chapter 3 status code.  
If the PAI is providing recipient information from an NQI or  
flow-through entity, the QI may not report the payments on a  
pooled basis for chapter 3 purposes. Instead, it must follow  
the same procedures as a U.S. withholding agent making a  
payment to an NQI or flow-through entity.  
Example 12. The facts are the same as in Example 11,  
except that Y is an organization that has tax-exempt status in  
the United States and in the country in which it is located,  
and B is a recalcitrant account holder with U.S. indicia. QI  
must file three Forms 1042-S. One Form 1042-S (for amounts  
allocable to A and X) will contain the same information as in  
Example 11. The second Form 1042-S (for amounts  
allocable to Y) will contain information for the withholding rate  
pool consisting of the amounts paid to Y. This Form 1042-S  
will show income code 06 (dividends paid by U.S.  
corporations – general) in box 1, exemption code 02 (exempt  
under IRC) in box 3a, “00.00” in box 3b (chapter 3 tax rate),  
chapter 4 exemption code 15 (payee not subject to chapter 4  
withholding) in box 4a, “00.00” in box 4b (chapter 4 tax rate),  
“Zero rate withholding pool-exempt organizations” or similar  
designation in box 13a (recipient's name), chapter 3 code 28  
(withholding rate pool – exempt organization) in box 13f, and  
a blank chapter 4 status code in box 13g. The third Form  
1042-S will contain information for the recalcitrant pool  
consisting of amounts paid to B. This Form 1042-S will show  
Example 13. QI, a qualified intermediary, pays U.S.  
source dividends to direct account holders that are foreign  
19  
Instructions for Form 1042-S (2024)  
 
persons and beneficial owners. It also pays a part of the U.S.  
source dividends to two private arrangement intermediaries,  
PAI1 and PAI2. The private arrangement intermediaries pay  
the dividends they receive from QI to foreign persons that are  
beneficial owners and direct account holders of PAI1 or PAI2.  
All payees are exempt from chapter 4 withholding based on  
their respective chapter 4 statuses and the dividends paid  
are subject to a 15% rate of withholding. QI must file a Form  
1042-S for the dividends paid to its own direct account  
holders that are beneficial owners. QI must also file two  
Forms 1042-S, one for the dividends paid to the direct  
account holders of each of PAI1 and PAI2. Each of the Forms  
1042-S that QI files for payments made to PAI1 and PAI2  
must contain the name and address of PAI1 or PAI2, recipient  
code 29 (PAI withholding rate pool – general) as the  
an NQI must include in boxes 15a through 15i the name,  
country code, address, TIN (if any), GIIN (if any), and status  
codes of the NQI from whom the recipient directly receives  
the payment. In the case of an NQI that is a participating FFI  
or registered deemed-compliant FFI, the QI must complete a  
Form 1042-S for the chapter 4 withholding rate pool of the  
NQI provided in a withholding statement associated with its  
Form W-8IMY and must report the NQI as the recipient. In  
such a case, the QI must include the name and address of  
the NQI as the recipient and use chapter 4 pool reporting  
codes 42 through 48 as the chapter 4 status code and  
chapter 3 status code 25 (nonqualified intermediary). If the  
NQI fails to provide sufficient allocation information with  
respect to a withholdable payment, the QI must complete a  
Form 1042-S with the recipient as “Unknown Recipient” using  
chapter 4 status code 29 (unknown recipient) and must  
include the NQI's information in boxes 15a through 15i.  
Example 14. QI, a qualified intermediary, has NQI, a  
nonqualified intermediary that is a participating FFI, as an  
account holder. NQI has two account holders, A and B, both  
recalcitrant account holders with U.S. indicia who receive a  
withholdable payment of U.S. source dividends from QI. NQI  
provides QI with a valid Form W-8IMY and a complete  
withholding statement that allocates the dividends paid to  
NQI to recalcitrant pool – U.S. indicia for both A and B. QI  
must complete one Form 1042-S reporting NQI as the  
recipient and using reporting pool code 43 (recalcitrant pool –  
U.S. indicia) as the chapter 4 status code.  
chapter 3 status code, and a blank chapter 4 status code,  
and should use chapter 4 exemption code 15 (payee not  
subject to chapter 4 withholding) in box 4a.  
Amounts Paid by QIs to Certain Partnerships  
and Trusts  
A QI that is applying the special pool reporting allowance  
provided in the QI agreement for certain partnerships or  
trusts (Agency Option) must file separate Forms 1042-S  
reflecting reporting pools for each partnership or trust that  
has provided reporting pool information in its withholding  
statement. A QDD cannot use the Agency Option. For  
purposes of chapter 4, a QI that is an FFI may use the  
chapter 4 reporting pool code 47 to allocate payments made  
to the partnership’s or trust's payees that are nonparticipating  
FFIs and should report the partnership or trust as the  
recipient on Form 1042-S. For chapter 3 purposes, if the  
payment is made directly by the partnership or trust to the  
recipient, the QI may use reporting pool code 31 (Agency  
withholding rate pool - general) or 32 (Agency withholding  
rate pool - exempt organization) as the chapter 3 status code  
(unless the QI is acting as a QDD with respect to the  
payment). However, to the extent required in the QI  
Example 15. QI has NQI, a nonqualified intermediary that  
is a reporting Model 2 FFI, as an account holder. NQI has two  
account holders, A and B, who receive a withholdable  
payment of U.S. source dividends from QI. A is a  
nonparticipating FFI. NQI treats B as a nonconsenting U.S.  
account under the applicable IGA and is not required to  
withhold on payments to B under chapter 4. NQI provides QI  
with a valid Form W-8IMY and a complete withholding  
statement that allocates 50% of the dividends paid to A and  
50% to B. NQI designates B as an individual exempt from  
withholding under an IGA but cannot include B in a chapter 4  
withholding rate pool of U.S. payees because the payment is  
subject to chapter 3 withholding and under the presumption  
rules of Regulations section 1.1441-1(b)(3) the payment is  
presumed made to an unknown, undocumented foreign  
payee. QI must complete two Forms 1042-S. One Form  
1042-S must show NQI as the recipient and use reporting  
pool code 47 (nonparticipating FFI pool). The second Form  
1042-S must show the recipient as “Unknown Recipient,”  
NQI's information in boxes 15a through 15i, chapter 4  
exemption code 19 (exempt from withholding under IGA),  
chapter 4 status code 34 (nonconsenting U.S. account),  
chapter 3 status code 21 (unknown recipient), and 30%  
withholding under chapter 3 for the payment allocated to B as  
a presumed foreign person under chapter 3.  
agreement, the QI must file separate Forms 1042-S for  
partners, beneficiaries, or owners of such partnership or trust  
that are indirect partners, beneficiaries, or owners, and for  
direct partners, beneficiaries, or owners of such partnership  
or trust that are intermediaries or flow-through entities.  
Recipient-by-Recipient Reporting by QIs  
If a QI is not permitted to report on the basis of reporting  
pools, it must follow the same rules that apply to a U.S.  
withholding agent. For chapter 3 purposes, a QI may not  
report the following payments on a reporting pool basis, but  
rather must complete Form 1042-S for each appropriate  
recipient and must provide the applicable chapter 4  
exemption code.  
Payments made by QIs to another QI, QDD, QSL, WP, or  
WT. The QI must complete a Form 1042-S treating the other  
QI, QDD (when a QI is acting as a QDD with respect to a  
payment), QSL, WP, or WT as the recipient. A QI must not  
treat a QI as a recipient, however, when the other QI is acting  
amounts realized, earlier, for information on reporting of PTP  
distributions and amounts realized paid to disclosing QIs.  
Payments made to an NQI (including an NQI that is an  
account holder of a PAI). For chapter 3 purposes, the QI  
must complete a Form 1042-S for each recipient who  
receives the payment from the NQI. A QI that is completing  
Form 1042-S for a recipient that receives a payment through  
Payments made by QIs to a flow-through entity. The QI  
must complete a Form 1042-S for each recipient who  
receives the payment from the flow-through entity for  
purposes of chapters 3 and 4. A QI that is completing a Form  
1042-S for a recipient that receives a payment through a  
flow-through entity must include in boxes 15a through 15i the  
name, country code, address, TIN (if any), GIIN (if any), and  
status codes of the flow-through entity from which the  
recipient directly receives the payment.  
For chapter 4 purposes and in the case of a flow-through  
entity that is a participating FFI or registered  
deemed-compliant FFI (other than a WP or WT), the QI must  
20  
Instructions for Form 1042-S (2024)  
   
complete a Form 1042-S for each chapter 4 withholding rate  
pool provided in the withholding statement associated with  
the Form W-8IMY of the flow-through entity. The QI must  
include the name, address, and GIIN of the flow-through  
entity as the recipient and the applicable chapter 3 status  
code for the flow-through entity and use pooled reporting  
codes 42 through 48 as the chapter 4 status code.  
Example 16. QI, a qualified intermediary, has FP, a  
nonwithholding foreign partnership that is a registered  
deemed-compliant FFI, as an account holder. QI pays  
interest that is a withholdable payment described by income  
code 01 (interest paid by U.S. obligors – general) to FP. FP  
has three partners, A, B, and C, all of whom are exempt from  
withholding under chapter 4 based on their respective  
chapter 4 statuses. FP provides QI with a Form W-8IMY with  
which it associates the Forms W-8BEN from each of A, B,  
and C. In addition, FP provides a complete withholding  
statement in association with its Form W-8IMY that allocates  
the interest payments among A, B, and C. QI must file three  
Forms 1042-S, one each for A, B, and C. The Forms 1042-S  
must show information relating to FP in boxes 15a through  
15i along with the chapters 3 and 4 status codes and  
chapter 4 exemption code 15 (payee not subject to chapter 4  
withholding) for A, B, and C.  
the basis of chapter 3 reporting pools and file a separate  
Form 1042-S for each reporting pool. For payments not  
subject to chapter 4 withholding, a WP or WT may use a  
single chapter 4 exemption code 15 (payee not subject to  
chapter 4 withholding) and a single chapter 3 reporting pool  
code 27 (withholding rate pool – general) as the chapter 3  
status code for all chapter 3 reporting pools, except for  
amounts paid to foreign tax-exempt recipients for which a  
separate recipient code 28 must be used. For this purpose, a  
foreign tax-exempt recipient includes any organization that is  
not subject to withholding and is not liable to tax in its country  
of residence because it is a charitable organization, pension  
fund, or foreign government. See the WP and WT  
agreements for when a WP and WT can pool report  
payments to an indirect partner, a beneficiary, or an owner.  
See section 9 of the WP or WT agreement.  
Amounts Paid by Nonqualified  
Intermediaries and Flow-Through  
Entities  
An NQI and a flow-through entity are withholding agents and  
must file Forms 1042-S for amounts paid to recipients.  
However, an NQI or flow-through entity is not required to file  
Form 1042-S if it is not required to file Form 1042-S under the  
Multiple Withholding Agent Rule, later. An NQI or  
See section 8 of the 2023 QI agreement in Rev. Proc.  
2022-43 for information on Form 1042-S reporting  
requirements when QIs make payments of PTP  
TIP  
flow-through entity may report payments made to recipients  
to the extent it has failed to provide to another withholding  
agent the appropriate documentation and complete  
withholding statement for either chapter 3 or 4 purposes or  
when an NQI receives a payment of an amount realized  
subject to section 1446(f) withholding from a broker that does  
not agree to report on Form 1042-S the NQI account holders  
receiving the payment. See the instructions for Form W-8IMY  
for the requirements for such an agreement. If the NQI or  
flow-through entity chooses to or must file Form 1042-S, as  
described above, the NQI or flow-through entity must also file  
Form 1042 and, if applicable, attach the Form 1042-S it  
received from the withholding agent to establish any credit for  
amounts withheld by the withholding agent. See the  
distributions or amounts realized, or when a QI acting as a  
QDD is a partnership required to report on Form 1042-S with  
respect to its foreign partners. For when a QI pays a PTP  
distribution or amount realized to a partner through more than  
one disclosing QI and the QI is required to issue a Form  
1042-S under section 8 of the 2023 QI agreement to report  
the payment, see Payment to QI of PTP distributions or  
amounts realized, earlier, for the disclosing QI to which the QI  
is required to issue a recipient copy of Form 1042-S.  
Amounts Paid by Withholding Foreign  
Partnerships and Trusts  
In general. For chapter 4 purposes, payments that are  
If another withholding agent has withheld tax on an  
amount that should have been exempt (for example, where  
the withholding agent applied the presumption rules because  
it did not receive proper documentation or other required  
information from the NQI or flow-through entity), and the  
payee or beneficial owner will make a claim for refund, the  
NQI or flow-through entity must report on Form 1042-S the  
correct tax rate and the combined amount of U.S. federal tax  
withheld with respect to all recipients and should enter the  
applicable chapters 3 and 4 exemption codes.  
made by a withholding foreign partnership (WP) or  
withholding foreign trust (WT) that is a participating FFI or a  
registered deemed-compliant FFI directly to its partners,  
owners, or beneficiaries that are recalcitrant account holders,  
payees that are nonparticipating FFIs, and payees that are  
U.S. persons may be reported on the basis of chapter 4  
reporting pools. A WP or WT may also use the chapter 4  
pooled reporting codes to report payments allocable to  
account holders, payees, or owners of another participating  
FFI or registered deemed-compliant FFI that is an NQI, NWP,  
or NWT and provides its chapter 4 withholding rate pools on  
its withholding statement when the WP or WT applies section  
9.03 of its agreement to such entity. In such case, the WP or  
WT must include the NQI, NWP, or NWT as the recipient in  
box 13a. If a WP or WT has not made a pooled reporting  
election for chapter 3 purposes, a WP or WT must file a  
separate Form 1042-S for each direct partner, beneficiary, or  
owner that is exempt from chapter 4 withholding and to whom  
the WP or WT distributes, or in whose distributive share is  
included, an amount subject to withholding under chapter 3,  
in the same manner as a U.S. withholding agent. However, if  
the WP or WT has made a pooled reporting election in its WP  
or WT agreement, the WP or WT may instead report  
If another withholding agent underwithholds, regardless of  
whether it received proper documentation from the NQI or  
flow-through entity, the NQI or flow-through entity must  
withhold additional amounts to bring the total withholding to  
the correct amount.  
If an NQI receives an amount realized withheld on  
under section 1446(f), it may issue Forms 1042-S to  
report the payment and withholding even if the  
TIP  
account holder is a U.S person.  
payments to such direct partners, beneficiaries, or owners on  
21  
Instructions for Form 1042-S (2024)  
   
Example 17. NQI, a foreign bank that is a participating  
FFI, acts as a nonqualified intermediary for four different  
foreign persons (A, B, C, and D) who own securities from  
which they receive interest that is a withholdable payment.  
The interest is paid by a U.S. withholding agent (WA) as  
custodian of the securities for NQI. A, B, C, and D each own  
a 25% interest in the securities. NQI has furnished WA with a  
Form W-8IMY to which it certifies its status as a participating  
FFI and has attached Forms W-8BEN from A and B. NQI's  
Form W-8IMY contains an attachment stating that 25% of the  
securities are allocable to each of A and B and 50% to a pool  
of recalcitrant account holders with U.S. indicia. WA pays  
$100 of interest during the calendar year. WA treats the $25  
of interest allocable to A and the $25 of interest allocable to B  
as portfolio interest and completes Forms 1042-S for A and  
for B as the recipients. WA includes information relating to  
NQI in boxes 15a through 15i on the Forms 1042-S for A and  
B. WA subjects the remaining $50 of interest to 30%  
withholding under chapter 4 and reports the interest on a  
Form 1042-S by treating NQI as the recipient in box 13a and  
uses chapter 3 status code 25 (nonqualified intermediary),  
chapter 4 status code 43 (recalcitrant pool – U.S. indicia),  
“30.00” in box 4b (chapter 4 tax rate), and $15 as the amount  
withheld in boxes 7 and 10. Under the multiple withholding  
agent rule, NQI is not required to file a Form 1042-S, but must  
file a Form 1042-S if, for example, C and D seek to make a  
claim for refund and NQI has not filed a collective refund  
claim on behalf of C and D for the tax withheld under  
chapter 4 on the payment (see Regulations section  
Specified Federal Procurement Payments Made  
to Foreign Persons  
Section 5000C imposes a 2% tax on any foreign person that  
receives a specified federal procurement payment. A  
specified federal procurement payment is a payment made to  
a foreign person pursuant to a contract with the U.S.  
Government for (1) the provision of goods that are  
manufactured or produced in a country that does not have an  
international procurement agreement with the United States,  
or (2) the provision of services in a country that does not  
have an international procurement agreement with the United  
States.  
For purposes of section 5000C, a payer of a specified  
federal procurement payment to a foreign person must  
complete a Form 1042-S for payments withheld upon in the  
name of the foreign person. Use income code 44 to report  
payments subject to withholding under section 5000C. box 2  
should include the amount of the specified federal  
procurement payments subject to withholding and box 7  
should include the amount of tax withheld under section  
5000C.  
If you are reporting tax withheld under section 5000C,  
enter “3” in box 3 as if the tax were a chapter 3 tax, enter “00”  
in box 3a, and report the tax withheld in box 7. You do not  
need to complete box 4a, 4b, or any box for a chapter 3 or 4  
status code. In boxes 13a through 13d, include the name and  
the address of the foreign person withheld upon. If known,  
include the TIN (if any) in box 13e.  
1.1471-4(h)).  
Example 18. WA, a U.S. withholding agent, makes a  
$100 dividend payment that is a withholdable payment to a  
foreign bank (NQI) that is a participating FFI and acts as a  
nonqualified intermediary. NQI receives the payment on  
behalf of A, documented as a foreign individual exempt from  
chapter 4 withholding and a resident of a treaty country who  
is entitled to a 15% rate of withholding under chapter 3, and  
B, documented as a foreign individual exempt from chapter 4  
withholding and a resident of a country that does not have a  
tax treaty with the United States and who is subject to 30%  
withholding under chapter 3. NQI provides WA with its Form  
W-8IMY that certifies its status as a participating FFI to which  
it associates the Forms W-8BEN from both A and B and a  
complete withholding statement that allocates 50% of the  
dividend to A and 50% to B. A's Form W-8BEN claims a 15%  
treaty rate of withholding. B's Form W-8BEN does not claim a  
reduced rate of withholding. WA, however, mistakenly  
withholds only 15%, $15, from the entire $100 payment. WA  
completes a Form 1042-S for each A and B as the recipients,  
showing on each form $50 of dividends in box 2, a  
Multiple Withholding Agent Rule  
A withholding agent is not required to file Form 1042-S if a  
return is filed by another withholding agent reporting the  
same amount and the withholding agent has withheld  
correctly.  
The multiple withholding agent rule does not relieve  
withholding agents from Form 1042-S reporting responsibility  
in the following circumstances.  
Any withholding agent making a payment to a QI, QSL,  
WP, or WT must report that payment as made to the QI, QSL,  
WP, or WT.  
Any withholding agent making a payment to a U.S. branch  
treated as a U.S. person must report the payment as made to  
that branch.  
Any withholding agent that withholds an amount from a  
payment under chapter 3 or 4 must report that amount to the  
recipient from whom it was withheld.  
Furthermore, the multiple withholding agent rule does not  
relieve the following from Form 1042-S reporting  
responsibility.  
withholding rate of “15.00” in box 3b (chapter 3 tax rate), and  
$7.50 as the amount withheld in boxes 7 and 10. Under the  
multiple withholding agent rule, NQI is not required to file a  
Form 1042-S for A. However, because NQI knows (or should  
know) that B is subject to a 30% rate of withholding, and  
assuming it knows that WA only withheld 15%, the multiple  
withholding agent rule does not apply to the dividend paid to  
B, and NQI must withhold an additional 15% from the  
Any QI, WP, or WT required to report an amount to a  
chapter 4 withholding rate pool or chapter 3 withholding rate  
pool.  
An NQI or flow-through entity that knows, or has reason to  
know, that the correct amount has not been withheld by  
another withholding agent.  
payment to B. NQI must then file a Form 1042-S for B  
showing $50 of dividends in box 2, “00” in box 3a (chapter 3  
exemption code), “30.00” in box 3b (the correct chapter 3 tax  
rate), $7.50 withheld by NQI in box 7, $7.50 withheld by WA  
in box 8, and $15 in box 10 (the combined amount withheld).  
NQI must also enter chapter 4 exemption code 15 (payee not  
subject to chapter 4 withholding) in box 4a and “00.00” in  
Under the multiple withholding agent rule, a withholding  
agent reporting amounts withheld by another withholding  
agent must use box 8 (Tax withheld by other agents) to report  
such amounts and must provide the name and EIN of the  
withholding agent that withheld in boxes 14a and 14b  
(Primary Withholding Agent's Name and EIN). See the  
instructions for boxes 14a and 14b, later.  
22  
Instructions for Form 1042-S (2024)  
     
box 4b (chapter 4 tax rate). See the instructions for box 3b,  
later.  
boxes must be completed if the nature of the payment  
requires it.  
If the amount reported in box 2 is a withholdable payment,  
Penalties  
you must also enter information in boxes 4a, 4b, and 13g. If  
the amount reported in box 2 is an amount subject to  
chapter 3 withholding, you must enter information in boxes  
12b, 12c, and 13f.  
The following penalties apply to the person required to file  
Form 1042-S. The penalties apply to both paper filers and  
electronic filers.  
If the amount reported in box 2 is not subject to chapter 4  
Late filing of correct Form 1042-S. A penalty may be  
imposed for failure to file each correct and complete Form  
1042-S when due (including extensions), unless you can  
show that the failure was due to reasonable cause and not  
willful neglect. The penalty, based on when you file a correct  
Form 1042-S, is the following.  
withholding or is not a withholdable payment, you must enter  
“00.00” in box 4b and provide the applicable exemption code  
in box 4a.  
If the amount reported in box 2 is a withholdable payment  
and an amount subject to chapter 3 withholding and the tax  
rate in box 4b is 00.00, you must enter information in boxes  
3a and 3b. If the rate entered in box 4b is 30.00, you may  
enter information in boxes 3a and 3b.  
$60 per Form 1042-S if you correctly file within 30 days  
after the required filing date; the maximum penalty is  
$664,500 per year ($232,500 for a small business). A small  
business, for this purpose, is defined as having average  
annual gross receipts of $5 million or less for the 3 most  
recent tax years (or for the period of its existence, if shorter)  
ending before the calendar year in which the Forms 1042-S  
are due.  
If you are a QI, WP, or WT that is pool reporting for its  
direct account holders only, either a chapter 3 status code  
(box 13f) or chapter 4 status code (box 13g) is required.  
If the recipient in box 13 or entity in box 15 is a  
participating FFI, registered deemed-compliant FFI,  
sponsored FFI, direct reporting NFFE, or sponsored direct  
reporting NFFE, you must enter the entity's GIIN or the GIIN  
of the sponsoring entity in box 13h or 15e (to the extent that  
you may rely on a sponsored entity's GIIN under the  
chapter 4 regulations or an applicable IGA for withholding  
purposes).  
$130 per Form 1042-S if you correctly file more than 30  
days after the due date but by August 1; the maximum  
penalty is $1,993,500 per year ($664,500 for a small  
business).  
$330 per Form 1042-S if you file after August 1 or you do  
not file correct Forms 1042-S; the maximum penalty is  
$3,987,000 per year ($1,329,000 for a small business).  
Use only income, status, and exemption codes specifically  
listed in these instructions.  
If you intentionally disregard the requirement to report  
correct information, the penalty per Form 1042-S is increased  
to the greater of $660 or 10% of the total amount of items  
required to be reported, with no maximum penalty.  
Use only tax rates that are allowed by statute, regulations,  
or treaty. Do not attempt to “blend” rates. Instead, if  
necessary, submit multiple Forms 1042-S to show changes in  
tax rate. See the Valid Tax Rate Table.  
Failure to furnish correct Form 1042-S to recipient. If  
you fail to provide Forms 1042-S to recipients and cannot  
show reasonable cause, a penalty of up to $330 may be  
imposed for each failure to furnish Form 1042-S to the  
recipient when due. The penalty may also be imposed for  
failure to include all required information or for furnishing  
incorrect information on Form 1042-S. The maximum penalty  
is $3,987,000 for all failures to furnish correct recipient  
statements during a calendar year. If you provide the correct  
statement on or before August 1, reduced penalties similar to  
those for failing to file a correct Form 1042-S with the IRS  
may be imposed. See Late filing of correct Form 1042-S,  
earlier. If you intentionally disregard the requirement to report  
correct information, each $330 penalty is increased to the  
greater of $660 or 10% of the total amount of items required  
to be reported, with no maximum penalty.  
All information you enter when reporting the payment must  
correctly reflect the intent of the statute and regulations. In  
most cases, you should rely on the withholding  
documentation you have collected (Form W-8 series, Form  
8233, etc.) to complete your Form 1042-S submissions.  
Also note the following.  
The gross income you report in box 2 cannot be zero.  
The income code you report in box 1 must correctly reflect  
the type of income you pay to the recipient.  
The withholding agent's name, address, chapters 3 and 4  
status codes, EIN, QI-EIN, WP-EIN, WT-EIN, and GIIN (if  
any) must be reported in boxes 12a through 12i.  
The recipient's name, address, U.S. TIN (if any), GIIN (if  
any), and country code must be reported in boxes 13a  
through 13e and 13h. In most cases, you must report a  
foreign address. See the instructions for box 13, later.  
Failure to file electronically. If you are required to file  
electronically but fail to do so, and you do not have an  
approved waiver on record, penalties may apply unless you  
establish reasonable cause for your failure.  
In the case of joint owners, Form 1042-S can only list one  
of the owners as the recipient in box 13a. Form 1042-S must  
not be completed with more than one of the joint owners as  
the recipient.  
The country code that you report in boxes 13b and 15f  
Avoid Common Errors  
must be present and correctly coded and cannot be “US”  
(unless the intermediary identified in line 15 is a U.S. branch  
that is not treated as a U.S. person). Additionally, do not use  
“OC” except as specifically allowed in these instructions.  
To ensure that your Forms 1042-S can be correctly  
processed, be sure that you do the following.  
Carefully read the information provided in Pub. 515 and  
these instructions.  
For direct account holders, you must report the recipient's  
Comply with the requirements in Pub. 1187 if you are an  
account number in box 13k. You may also be required to  
report the recipient's FTIN, an LOB code (for an entity  
claiming treaty benefits), and the recipient's date of birth in  
boxes 13j and 13l (see the instructions for box 13j and  
box 13l, later).  
electronic filer.  
Complete all required fields. At a minimum, you must  
provide your unique form identifier at the top of the form as  
well as the information requested in boxes 1, 2, 3, 7a, 12a,  
12b, 12c, 12d, 12f, 12h, 12i, 13a, 13b, 13c, and 13d. Other  
The exemption code you report in box 3a must correctly  
identify the proper tax status for the type of income you pay to  
23  
Instructions for Form 1042-S (2024)  
         
the recipient. The exemption code you report in box 4a must  
correctly identify the proper tax status for the type of income  
you pay to the recipient or if exemption code 15 is used  
(payee not subject to chapter 4 withholding), the chapter 4  
status code of the recipient must correctly reflect this  
exemption.  
number can be used on a new original form in a subsequent  
year.  
Amended Checkbox  
See Amended Forms, later.  
Amendment Number  
When reporting to Unknown Recipients, ensure that 30%  
tax is withheld for amounts subject to chapter 3 or 4  
withholding, remitted to the IRS, and correctly reported on  
Form 1042-S. In such cases, the recipient's name should be  
"Unknown Recipient." The recipient's chapter 3 and 4 status  
codes should also reflect "Unknown Recipient," and the  
recipient country should be left blank. Do not use country  
code "UC" to indicate unknown country. Only use country  
code "UC" when the recipient country is Curacao.  
If you are filing an amended Form 1042-S, you must provide  
an amendment number. The amendment number must be  
numeric and the length must be exactly one digit. Each time  
that you amend the same form (as determined by the unique  
form identifier), you must provide the amendment number in  
the box provided on the form (using “1” for the first  
amendment and increasing sequentially for each subsequent  
amendment).  
Foreign source income generally is not required to be  
Box 1, Income Code  
reported on Form 1042-S. As a result, exemption code 03  
(income is not from U.S. sources) should be used for  
reporting income only in limited circumstances (for example,  
when withholding is applied in error). See Regulations  
section 1.1461-1(c)(2) for when reporting on Form 1042-S is  
required.  
All filers must enter the appropriate two-digit income code  
from the list in Appendix A, later. Use the income code that is  
the most specific. See Pub. 515 for further explanation of the  
income codes. Below are examples on how to use some of  
the income codes.  
Note. If you use exemption code 04 (exempt under tax  
treaty), the country code that you report in box 13b must be a  
valid treaty country. Countries with which the United States  
has a tax treaty are listed at IRS.gov/Businesses/  
A-to-Z.  
1. Use code 06 for dividends, including any deemed  
dividends (such as deemed dividends arising under section  
305(c)). However, use other codes for dividends (including  
deemed dividends) paid on actively traded securities and for  
dividend equivalents.  
2. Use code 09 for the following types of capital gain.  
You, the withholding agent, are liable for the tax if you  
a. Gains on disposal of timber, coal, or domestic iron ore  
with a retained economic interest, unless an election is made  
to treat those gains as income effectively connected with a  
U.S. trade or business.  
know, or should have known, that underwithholding  
!
CAUTION  
on a payment has occurred.  
b. Gains on contingent payments received from the sale  
or exchange after October 4, 1966, of patents, copyrights,  
secret processes and formulas, goodwill, trademarks, trade  
brands, franchises, and other like property.  
c. Gains on certain transfers of all substantial rights to, or  
an undivided interest in, patents if the transfers were made  
before October 5, 1966.  
Specific Instructions for  
Withholding Agents  
All amounts must be reported in U.S. dollars.  
!
CAUTION  
Rounding Off to Whole Dollars  
d. Certain gains from the sale or exchange of OID  
obligations issued after March 31, 1972.  
You must round off cents to whole dollars. To round off  
amounts to the nearest whole dollar, drop amounts under 50  
cents and increase amounts from 50 to 99 cents to the next  
dollar. For example, $1.39 becomes $1 and $2.50 becomes  
$3. If you have to add two or more amounts to figure the  
amount to enter on a line, include cents when adding and  
only round off the total.  
3. Use code 17 for payments for independent personal  
services performed by a foreign person (including payments  
made to an entity). This includes payments that are subject to  
the business profits article of a treaty.  
4. Use code 29 (deposit interest) if you are paying bank  
deposit interest, not code 01 (interest paid by U.S.  
obligors-general).  
5. Use code 24 (qualified investment entity (QIE)  
distributions of capital gains) for distributions of capital gains  
from a QIE. Use code 36 (capital gains distributions) for  
capital gain distributions (dividends) paid or credited by  
mutual funds (or other RICs). Include long-term and  
short-term capital gain dividends (use exemption code 02  
(exempt under IRC) in box 3a).  
Unique Form Identifier  
A withholding agent must provide a unique form identifier  
number on each Form 1042-S that it files in the box provided  
at the top of the form. The unique form identifier must:  
Be numeric (for example, 1234567891),  
Be exactly 10 digits, and  
Not be the recipient's U.S. or foreign TIN.  
If a withholding agent is filing an amended Form 1042-S, it  
Note. Exempt-interest dividends and interest-related  
dividends should be reported under income code 01 (interest  
paid by U.S. obligors-general) (use exemption code 02  
(exempt under IRC) in box 3a).  
6. Use code 28 for gambling winnings. These are  
proceeds from a game other than blackjack, baccarat, craps,  
roulette, or big-6 wheel. For more information, see Pub. 515.  
must include the same unique form identifier that was  
reported by the withholding agent on the original Form  
1042-S that is being amended. The unique form identifier will  
be used to identify which information return is being  
corrected or amended when multiple information returns are  
filed by a withholding agent with respect to the same  
recipient. The identifying number must be unique to each  
original Form 1042-S filed for the current year. The identifying  
24  
Instructions for Form 1042-S (2024)  
             
7. Use code 33, 34, 35, 53, or 54 for all substitute  
payment transactions. For more information, see Regulations  
sections 1.861-2(a)(7) and 1.861-3(a)(6). For payments of  
interest or substitute interest made by a withholding agent to  
a QI that assumes primary withholding responsibilities for  
substitute interest, the withholding agent and the QI should  
use code 33 or 54. For payments of substitute dividends, a  
withholding agent should use code 34 or 53. See Rev. Proc.  
2022-43 for more information on when a QI assumes primary  
withholding responsibilities for substitute interest or dividend  
equivalents.  
withheld during the current calendar year that you are not  
depositing pursuant to the escrow procedure, see the  
instructions for box 7, later.  
14. Use code 52 (dividends paid on certain actively traded  
or publicly offered securities), 53 (substitute  
payments-dividends paid from certain actively traded or  
publicly offered securities), 51 (interest paid on certain  
actively traded or publicly offered securities), 54 (substitute  
payments-interest from certain actively traded or publicly  
offered securities), and 13 (royalties paid on certain publicly  
offered securities) if the income paid is described in  
Regulations section 1.1441-6(c)(2) and you have reduced the  
rate of withholding under an income tax treaty without the  
recipient providing a U.S. or foreign TIN. See codes 40 and  
56 for dividend equivalents other than substitute dividends  
and example 10 of this list for additional information.  
8. Use code 37 (return of capital) for a nondividend  
distribution. This is a distribution that is not paid out of the  
earnings and profits of a corporation. It represents a  
distribution in part or full payment in exchange for stock.  
9. Use codes 38 and 39 for payments to covered  
expatriates. Use code 38 for a payment of eligible deferred  
compensation subject to section 877A(d)(1) and use code 39  
for a distribution from a nongrantor trust subject to section  
877A(f)(1). For more information, see Notice 2009-85,  
2009-45 I.R.B. 598, available at IRS.gov/irb/  
15. Use code 55 (taxable death benefits on life insurance  
contracts) to report taxable death benefits, such as benefits  
paid on an insurance contract that was acquired on a transfer  
for valuable consideration. See section 101 for when death  
benefits are taxable.  
16. Use income code 57 to report an amount realized  
under section 1446(f) (regardless of whether paid on a sale  
or PTP distribution).  
10. There are three categories of dividend equivalent  
codes. For substitute dividends, use code 34 or 53. See  
example 7 of this list for additional instructions related to  
substitute dividends. For dividend equivalents with respect to  
a transaction that is a section 871(m) transaction as a result  
of combining transactions under Regulations section  
1.871-15(n) (including as modified by transition relief under  
Notice 2022-37, when applicable) (a “combined  
transaction”), use code 56 (dividend equivalents under IRC  
section 871(m) as a result of applying the combined  
transaction rules). For all other dividend equivalents, use  
code 40 (other dividend equivalents under IRC section  
871(m)).  
17. Use income code 58 to the extent you cannot  
determine the income attributable to a PTP distribution and  
apply Regulations section 1.1446-4(d)(1) to determine the  
withholding absent a qualified notice indicating the amount.  
18. Income code 23 (other income) should be used only to  
report U.S. source FDAP income that is not reportable under  
any other available income code.  
If you paid more than one type of income to or on behalf of  
the same recipient, you must complete a separate Form  
1042-S for each income type.  
11. Use code 41 (guarantee of indebtedness) for certain  
guarantee of indebtedness payments. These are amounts  
paid for the provision of a guarantee of indebtedness that  
was issued after September 27, 2010.  
12. Use either code 42 (earnings as an artist or athlete –  
no central withholding agreement) or 43 (earnings as an artist  
or athlete – central withholding agreement) for payments to  
an artist or athlete. A central withholding agreement is Form  
13930, Application for Central Withholding Agreement, plus  
additional information specified in the instructions for such  
form, that is entered into by the artist or athlete, a designated  
withholding agent, and the IRS. For more details, see Pub.  
515.  
13. Use code 50 (income previously reported under  
escrow procedure) with respect to a recalcitrant account  
holder of a dormant account for which a participating FFI  
reported the income on Form 1042-S in a prior calendar year  
but for which the participating FFI was not required to deposit  
the tax withheld or determined that withholding was not  
required until the current calendar year under an applicable  
escrow procedure. For additional information on the escrow  
procedure for dormant accounts, see Regulations section  
1.1471-4(b)(6). Also use code 50 for income reported on a  
Form 1042-S in a prior calendar year for which tax withheld  
was not deposited pursuant to the escrow procedure for  
undetermined amounts of income and such withheld tax is  
now required to be deposited in the current calendar year.  
For additional information on the escrow procedure for  
undetermined amounts of income, see Regulations section  
1.1441-3(d)(1). For instructions on reporting amounts  
Note. Although income codes are provided for short-term  
OID and notional principal contract income, those items are  
not always subject to reporting on Form 1042-S. For example,  
short-term OID may need to be reported by an NQI or  
flow-through entity if those amounts are paid to foreign  
persons and another withholding agent backup withheld on  
those amounts under the presumption rules. Notional  
principal contract income is reportable if it is effectively  
connected with the conduct of a trade or business in the  
United States or results in the payment of interest under  
Regulations section 1.446-3(g)(4) or a dividend equivalent  
under section 871(m) and the regulations thereunder (for  
which a Form 1042-S is required). For more information, see  
the regulations under chapter 3 and Pub. 515.  
Box 2, Gross Income  
For each income type, enter the gross amount you paid (in  
whole dollars) to or on behalf of the recipient during the  
calendar year, including withheld tax. See, however, the  
instructions for boxes 16a through 16e, later, for when you  
must issue a separate Form 1042-S (or several Forms  
1042-S) for income attributable to a PTP distribution. The  
following other special procedures apply to the reporting of  
gross income.  
You must report the entire amount of a corporate  
distribution made with respect to stock even if you elect to  
reduce the amount of withholding on the distribution because  
all or a part of the distribution is nontaxable or represents a  
capital gain dividend.  
25  
Instructions for Form 1042-S (2024)  
 
You must report the entire amount of a payment if you do  
you report the income as effectively connected with a U.S.  
trade or business. If the recipient's U.S. TIN is unknown or  
unavailable, you must withhold tax at the rate of 30% (30.00)  
and enter “00” in boxes 3a and 4a.  
not know at the time of payment the amount that is subject to  
withholding because the determination of the source of the  
income or the calculation of the amount of income subject to  
tax depends upon facts that are not known at the time of  
payment.  
Chapter 3 Exemption Codes  
If you applied the escrow procedure under chapters 3 and  
4, report the entire amount of a payment that you previously  
reported in a prior calendar year for which you withheld tax  
but did not deposit such tax under the escrow procedure if  
the liability is due in the current calendar year.  
A withholding agent should use chapter 3 exemption code  
02, Exempt under IRC, only if none of the other chapter 3  
exemption codes apply.  
You must report the entire amount of gains relating to the  
A withholding agent should use exemption code 06 (QI  
that assumes primary withholding responsibility) only if it is  
making a payment to a QI that has represented on its Form  
W-8IMY that it is assuming primary withholding responsibility  
under chapters 3 and 4. However, if the payment is made to a  
QI that is acting as a QDD with respect to the payment, the  
withholding agent should instead use exemption code 22  
(QDD that assumes primary withholding responsibility).  
disposal of timber, coal, or domestic iron ore with a retained  
economic interest, and gains relating to contingent payments  
received from the sale or exchange of patents, copyrights,  
and similar intangible property.  
You must report only the amount of cash paid on notional  
principal contracts.  
If reporting payments to artists or athletes who have  
signed a central withholding agreement (income code 43),  
you must report the gross amount paid to the artist or athlete  
in box 2 (without any consideration to the expenses to be  
taken into account for purposes of determining the amount of  
withholding tax pursuant to the central withholding  
agreement).  
A withholding agent should use exemption code 07 (WP  
or WT) only if it is making a payment to a foreign partnership  
or trust that has represented on its Form W-8IMY that it is a  
WP or WT.  
You must report the entire amount of any dividend  
A withholding agent should use exemption code 08 (U.S.  
branch treated as U.S. person) for chapter 3 purposes only if  
it is making a payment to a U.S. branch or to a territory FI and  
it has represented on its Form W-8IMY that it agrees to be  
treated as a U.S. person.  
equivalent as determined under Regulations sections  
1.871-15(i) and (j).  
Box 3  
Chapter indicator. If you are reporting amounts in boxes 7  
through 9, enter either a “3” or “4” to indicate whether the  
amounts were withheld (or paid by the withholding agent)  
pursuant to chapter 3 or chapter 4. If you are reporting tax  
withheld under section 5000C, or backup withholding was  
applied under the presumption rules, enter “3” as if the tax  
were a chapter 3 tax.  
A withholding agent should use exemption code 10 (QI  
represents that income is exempt) for chapter 3 purposes  
only if it makes a payment to a QI that has not assumed  
primary withholding responsibility under chapters 3 and 4 or  
primary backup withholding responsibility, but has  
represented on a withholding statement associated with its  
Form W-8IMY that the income is exempt from withholding.  
Note. Either a “3” or “4” (but not both) must be entered on  
each Form 1042-S. If you are not reporting amounts in boxes  
7 through 9 because you did not withhold under chapter 3 or  
4, you should enter “3.”  
A withholding agent should use exemption code 11 (QSL  
that assumes primary withholding responsibility) for chapter 3  
purposes only if the withholding agent makes a substitute  
dividend payment to a financial institution (including a QI)  
that represented on its Form W-8IMY that it is acting as a  
QSL for the account associated with the form.  
If you are reporting payments to U.S. payees, enter “3” and  
leave boxes 3a and 3b blank.  
Boxes 3a and 4a, Chapter 3 and Chapter 4  
Exemption Codes  
A withholding agent should use exemption code 12 (payee  
subjected to chapter 4 withholding) for chapter 3 purposes if  
the recipient has been withheld upon under chapter 4 and  
thus chapter 3 withholding does not apply. When reporting a  
payment subject to chapter 4 withholding, ensure that 30%  
tax is withheld, remitted to the IRS, and correctly reported on  
exemption codes, later.  
In most cases, if the tax rate you entered in box 3b or 4b is  
00.00, you may be required to enter the appropriate  
exemption code (01 through 24) from Appendix B, later, as  
applicable for chapter 3 and 4 purposes. In certain cases,  
more than one exemption code will apply. See the  
instructions below for the applicable codes to determine  
which code to use.  
If an amount was withheld under chapter 4 (the tax rate  
you entered in box 4b is greater than zero and is not due to  
backup withholding), enter “00” in box 4a. If the tax rate you  
entered in box 4b is 00.00, you must enter the applicable  
exemption code (13 through 21) in box 4a. If an amount was  
withheld under chapter 3 (the tax rate you entered in box 3b  
is greater than zero and is not due to backup withholding),  
enter “00” in box 3a. If the tax rate you entered in box 3b is  
due to backup withholding, leave box 3a blank.  
A withholding agent should use chapter 3 exemption code  
23 for distributions made by a QIE to a qualified foreign  
pension fund (or an entity all of the interests of which are held  
by a qualified foreign pension fund) that are exempt under  
section 897(l).  
A withholding agent should use chapter 3 exemption code  
24 for income paid to a foreign government or an  
international organization that is exempt under section 892.  
If exemption code 01 or 14 (effectively connected income)  
applies, you must enter the recipient's U.S. TIN in box 13e if  
26  
Instructions for Form 1042-S (2024)  
   
withholding or subject to a reduced rate of withholding, and  
the account holder requests a corrected form, you must  
submit a Form 1042-S providing the correct information. In  
this situation, you must:  
Chapter 4 Exemption Codes  
A withholding agent should use exemption code 13  
(grandfathered payment) for chapter 4 purposes only if the  
withholding agent makes a payment under a grandfathered  
obligation (as defined in Regulations section 1.1471-2(b)(2))  
and exemption code 13 is the only exemption code that  
applies. If another exemption code applies, it should be used  
instead of exemption code 13.  
Indicate the correct rate of withholding that should have  
been applied to the income in boxes 3b or 4b;  
Enter the appropriate exemption codes, if any, in boxes 3a  
and 4a;  
Enter the actual amount of U.S. federal tax withheld by the  
other withholding agent in box 8;  
Provide the name and address of the actual recipient in  
A withholding agent should use exemption code 15 (payee  
not subject to chapter 4 withholding) for chapter 4 purposes if  
the payment is a withholdable payment (as defined in  
Regulations section 1.1473-1(a)) but has not been withheld  
upon under chapter 4 because of the payee's chapter 4  
status. Also, if the withholding agent applies the 90-day grace  
period for a withholdable payment following a change in  
circumstances, use exemption code 15 (payee not subject to  
chapter 4 withholding).  
boxes 13a through 13d along with the other required  
information for the recipient;  
Provide the name and EIN of the other withholding agent  
that actually withheld and deposited the tax (primary  
withholding agent) in boxes 14a and 14b; and  
Report the account holder's U.S. TIN, if provided.  
If you submit Form 1042-S as described above, you  
must also submit Form 1042 and issue a Form  
!
CAUTION  
1042-S to each recipient (including any unknown  
A withholding agent should use exemption code 16  
(excluded nonfinancial payment) for chapter 4 purposes for  
payments described in Regulations section 1.1473-1(a)(4)  
(iii). However, the withholding agent should only use  
exemption code 16 if it is the only exemption code that  
applies. If another exemption code applies, it should be used  
instead of exemption code 16.  
recipient or U.S. payee) of the income to which withholding  
was applied.  
Special instructions for use of chapter 3 exemption co-  
des. If an amount was withheld under chapter 4, you may  
also include a chapter 3 exemption code and tax rate in  
boxes 3a and 3b to show the rate that would otherwise apply  
as if the payment had been later determined to be exempt  
from withholding under chapter 4. This may be done, for  
example, to assist the beneficial owner in pursuing a claim for  
refund. In such a case, enter “4” as the chapter indicator in  
box 3 to show that withholding was applied under chapter 4.  
A withholding agent should use exemption code 17  
(foreign entity that assumes primary withholding  
responsibility) for chapter 4 purposes only if it makes a  
payment to a QI that assumes primary withholding  
responsibility, a WP, or a WT.  
Boxes 3b and 4b, Chapter 3 and Chapter 4 Tax  
Rates  
Enter the correct rate of withholding that applies to the  
income in box 2 (gross income) or box 6 (net income), as  
appropriate. In the case of a payment subject to chapter 4  
withholding, the correct rate of withholding is “30.00.If the  
amount reported in box 2 is not subject to chapter 4  
A withholding agent should use exemption code 18 (U.S.  
payees – of participating FFI or registered deemed-compliant  
FFI) for chapter 4 purposes only if it makes a payment to a  
participating FFI or registered deemed-compliant FFI and  
only to the extent represented on such FFI's withholding  
statement associated with its Form W-8IMY that the payment  
is allocable to a chapter 4 withholding rate pool of U.S.  
payees and the FFI certifies on its withholding certificate that  
the FFI meets the requirements to include the account holder  
in a withholding rate pool of U.S. payees.  
withholding or is not a withholdable payment, you must enter  
“00.00” in box 4b and provide the applicable exemption code  
in box 4a. For purposes of chapter 3 withholding, see Valid  
Tax Rate Table. The correct tax rate should be included even  
if you withheld at a different rate. For example, if an NQI that  
is a participating FFI is reporting dividends paid to a  
A withholding agent should use exemption code 20  
(dormant account) for chapter 4 purposes only if it makes a  
withholdable payment to a participating FFI or registered  
deemed-compliant FFI that represented on its withholding  
statement associated with its Form W-8IMY that the payment  
is allocable to a dormant account holder for which the escrow  
procedure of Regulations section 1.1471-4(b)(6) applies.  
beneficial owner who is exempt from withholding under  
chapter 4 and a resident of a country with which the United  
States does not have a tax treaty and a U.S. withholding  
agent paid the dividend and incorrectly withheld only 15%  
under chapter 3 (rather than the required 30%) and the NQI  
withholds an additional 15% under chapter 3, the NQI should  
report “30.00” in box 3b. See Example 18, earlier, under  
Multiple Withholding Agent Rule. The tax rate on dividends  
paid to a corporation created or organized in, or under the  
law of, the Commonwealth of Puerto Rico may be 10%,  
rather than 30%. See Pub. 515 for more information.  
A withholding agent should use exemption code 21  
(Other–payment not subject to chapter 4 withholding) for  
chapter 4 purposes if the payment is exempt from chapter 4  
withholding and no other chapter 4 exemption code applies.  
A withholding agent should also use exemption code 21  
(Other–payment not subject to chapter 4 withholding) when  
using income code 37 (return of capital) to report  
nondividend payments.  
In the case of a specified federal procurement payment  
subject to section 5000C withholding, the correct rate of  
withholding is 2% or “02.00.” For Form 1042-S purposes,  
report tax withheld under section 5000C in box 3b as if the  
tax were a chapter 3 tax.  
If you have failed to provide a withholding agent with  
appropriate information regarding the status of the person to  
whom you are making a payment, the other withholding  
agent may be required to withhold on the payment based on  
the presumption rules. If the income is in fact exempt from  
Enter the tax rate using the following format: two digits, a  
decimal point, and two digits (for example, “30.00” for 30%).  
However, if the income is exempt from tax under a U.S. tax  
27  
Instructions for Form 1042-S (2024)  
   
treaty or the Internal Revenue Code, enter “00.00.If the tax  
rate is less than 10%, enter a zero before the tax rate (for  
example, “04.00” for 4%).  
(ii) and/or 1.1441-3(d) must check box 7b (federal tax  
withheld was not deposited with the IRS because escrow  
procedures were applied). A withholding agent reporting  
payments pursuant to the escrow procedure must report  
such payments on separate Forms 1042-S. Box 7b must only  
be checked when using the escrow procedures as specified  
above.  
If you withheld at more than one tax rate for a specific  
type of income that you paid to the same recipient,  
!
CAUTION  
you must file a separate Form 1042-S for each  
amount to which a separate rate was applied.  
If you are a participating FFI or registered  
deemed-compliant FFI that, for chapter 4 purposes, applied  
the escrow procedure for dormant accounts, if the payment is  
also an amount subject to chapter 3 withholding and tax is  
withheld and deposited under chapter 3, do not check  
box 7b. Instead, enter “3” in box 3 and complete box 3b to  
report the tax withheld under chapter 3.  
Box 7c. Check box 7c if you are a partnership that received  
an amount subject to withholding during the 2024 calendar  
year (preceding year) and you are withholding on the amount  
includible in a foreign partner’s share after March 15 of the  
subsequent year (2025). Only check this box if you  
Valid Tax Rate Table  
00.00  
02.00  
04.00  
04.90  
04.95  
05.00  
07.00  
08.00  
10.00  
12.00  
12.50  
14.00  
15.00  
17.50  
20.00  
21.00  
24.00  
25.00  
27.50  
28.00  
30.00  
37.00  
designated the deposit as attributable to the preceding year  
(2024). In such a case, the partnership will be required to  
report the associated income and tax withheld on Forms  
1042 and 1042-S for the preceding year. If a partnership  
withholds on a foreign partner’s share of income after March  
15 of the subsequent year, the due date for filing and  
furnishing the applicable Form(s) 1042-S is September 15 of  
the subsequent year (2025). For example, if a partnership  
withholds on April 1, 2025, with respect to a foreign partner’s  
share of undistributed income for the 2024 calendar year, the  
partnership may designate the deposit as made for 2024 and  
report the liability and tax withheld on the 2024 Form 1042  
and the 2024 Form 1042-S for the partner. The partnership  
must also ensure that its chapter 3 status code on such forms  
properly reflects its status as a partnership (including as a  
WP). The extended deadline of September 15, 2024, is also  
applicable when a partnership is reporting on Form 1042-S  
an allocation of income made after March 15 of the  
Exception for central withholding agreements. If you are  
the designated withholding agent who has entered into a  
central withholding agreement and you report an amount in  
box 2 using income code 43 (earnings as an artist or athlete –  
central withholding agreement), you must enter a tax rate in  
box 3b and you must include a chapter 4 exemption code 16  
(excluded nonfinancial payment) in box 4a.  
Box 5, Withholding Allowance  
This box should be completed only if the income code  
reported in box 1 is 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), or 42 (earnings as an artist or  
athlete-no central withholding agreement), and there is a  
valid treaty claim that provides an exemption from  
withholding up to a specific amount. Report the amount  
exempt from withholding here. This box should not be used  
for reporting a personal exemption. If you are a designated  
withholding agent that has entered into a central withholding  
agreement with the IRS, leave this box blank and report the  
gross amount paid to the recipient in box 2. See Pub. 515 for  
more information.  
subsequent year to a foreign partner for the prior year, but no  
withholding is required on the income. In such a case, box 7c  
must also be checked even if there is no withholding. For  
more information, see proposed regulations issued on  
December 18, 2018 (REG-132881-17).  
Box 8. If you are a withholding agent filing a Form 1042-S to  
report income that has already been subject to withholding by  
another withholding agent, enter the amount actually  
withheld by the other agent(s) in box 8.  
Box 9, Overwithheld tax repaid to recipient pursuant to  
adjustment procedures. This box should be completed  
only if you repaid a recipient under the reimbursement or  
set-off procedure during the 2025 calendar year in  
accordance with the requirements of Regulations section  
1.1461-2(a)(2) or (3) (for withholding under chapter 3), or  
Regulations section 1.1474-2(a)(3) or (4) (for withholding  
under chapter 4).  
If you repaid the recipient under the reimbursement or  
set-off procedure during the 2024 calendar year, do not  
complete box 9. Instead, reduce the amount of withholding  
reported in box 7a.  
Box 6, Net Income  
Complete this box only if you entered an amount in box 5.  
Otherwise, leave it blank.  
Boxes 7a Through 11, Federal Tax  
Withheld  
Box 7a. Enter the total amount of U.S. federal tax you  
actually withheld in box 7a under chapter 3 or 4. If you did not  
withhold any tax, enter “-0-.”  
Box 7a must be completed in all cases, even if no tax  
has been deposited.  
In most cases, an intermediary or flow-through entity  
should not enter an amount in box 9 unless it is a QI that  
represented on its Form W-8IMY that it is assuming primary  
withholding responsibility or is a WP or WT.  
!
CAUTION  
Box 7b. A withholding agent that withheld tax during the  
calendar year and that was not required to deposit with the  
IRS the tax withheld during the calendar year pursuant to the  
escrow procedure under Regulations sections 1.1471-2(a)(5)  
28  
Instructions for Form 1042-S (2024)  
             
The adjustment for amounts overwithheld applies to  
partnerships, brokers, or nominees required to  
withhold under sections 1446(a) and (f) starting in  
Note. Withholding agents that are U.S. governmental entities  
or U.S. tax-exempt entities, including colleges and  
universities, and other U.S. tax-exempt entities under the  
Internal Revenue Code other than under section 501(c), may  
use chapter 3 status code 20 (Tax exempt organization  
(Section 501(c) entities)) for box 12b.  
!
CAUTION  
2023.  
Note. If the withholding agent meets the above  
requirements, the withholding agent may make adjustments  
to overwithholding using either the reimbursement or set-off  
procedure until the extended due date for filing Form 1042-S  
(or, if earlier, the date on which the Form 1042-S is either filed  
or furnished). Additionally, a withholding agent may use the  
extended due date for filing a Form 1042 to claim a credit for  
any adjustments made to overwithholding.  
Note. A withholding agent should in general select the  
chapter 3 status code that most closely applies with its status  
based on the available codes. For example, if a U.S. financial  
institution (which checks chapter 4 status code 01, as such,  
unless it is a foreign branch) is a corporation, it should use  
chapter 3 status code 15 (Corporation).  
Boxes 12d Through 12i, Withholding  
Agent's Name, GIIN, Country Code,  
Foreign TIN (if any), and Address  
Box 10. Enter in box 10 the combined amounts reported in  
box 7a (federal tax withheld), box 8 (tax withheld by other  
agents), and box 9 (overwithheld tax repaid to recipient  
pursuant to adjustment procedures).  
Example. If the box 7a amount is $600, the box 8 amount  
is $120, and the box 9 amount is ($50), the box 10 amount  
will equal $670.  
Enter your name and address in the appropriate boxes. If  
your post office does not deliver mail to the street address  
and you have a P.O. box, show the box number instead of the  
street address.  
Box 10 must be completed in all cases, even if no tax  
has been deposited.  
!
Note. On statements furnished to individual recipients of  
U.S. source deposit interest, in addition to your name and  
address, you must include the telephone number of a person  
to contact. This number must provide direct access to an  
individual who can answer questions about the statement.  
The telephone number is not required on Copy A of paper  
forms or on electronically filed forms.  
Box 12e, Withholding agent's GIIN. The GIIN provided, if  
any, should be the GIIN issued to the branch of, or  
disregarded entity owned by, the participating FFI or  
registered deemed-compliant FFI that is making the  
payment.  
Box 12f, Country code. You must enter the code (from the  
list at IRS.gov/CountryCodes) for the country for which you  
are resident under that country's tax laws. Enter “OC” (other  
country) only when the country of residence does not appear  
on the list.  
CAUTION  
Box 11, Tax paid by withholding agent (amounts not  
withheld). Enter the total amount of tax paid by you and not  
withheld from the payment to the recipient. The amounts  
reported in box 11 should be the amounts paid by the  
withholding agent from its own funds rather than through  
withholding from the payment to the recipient. Any amount  
reported in this box must not be included in box 10.  
Box 12a, Withholding Agent's  
Employer Identification Number (EIN)  
You are required to enter your EIN. However, if you are filing  
Form 1042-S as a QI, WP, or WT, enter your QI-EIN, WP-EIN,  
or WT-EIN. The withholding agent's EIN cannot be  
truncated.  
If you don’t have an EIN, you may apply for one online by  
employer-id-numbers. If you are outside the United States,  
you may also apply for an EIN by calling 267-941-1099 (not a  
toll-free number). You may also apply for an EIN by faxing or  
mailing Form SS-4 to the IRS. File amended Forms 1042-S  
when you receive your EIN.  
Note. If the withholding agent is a U.S. person or a foreign  
branch of a U.S. person, enter “US” in box 12f (even though  
“US” is not a code on the list at IRS.gov/CountryCodes).  
Boxes 13a Through 13d, Recipient's  
Name, Country Code, and Address  
To get a QI-EIN, WP-EIN, or WT-EIN, submit Form SS-4  
with your application for that status. (See the definitions for  
Definitions, earlier, for more information.)  
Box 13a, Recipient's name. Enter the complete name of  
the recipient in box 13a.  
If you do not know the name of the recipient, or are  
required to use the recipient status codes for an unknown  
recipient, enter “Unknown Recipient.Also enter "Unknown  
Recipient" if you pay an amount realized subject to section  
1446(f) withholding to an NQI and you do not agree with the  
NQI to report the NQI's account holders on Form 1042-S.  
Boxes 12b and 12c, Withholding  
Agent's Chapter 3 and Chapter 4  
Status Code  
If Form 1042-S is being completed by a QI, WP, or WT for  
a chapter 3 withholding rate pool or chapter 4 withholding  
pool, enter “Withholding rate pool” if withholding under  
chapter 3 was applied, or, if chapter 4 withholding was  
applied, a description of the chapter 4 reporting pool (for  
example, “Nonparticipating FFI Pool”) in box 13a.  
Enter the withholding agent status code(s) from the list of  
Recipient Status Codes in Appendix B, later. You must enter  
both a chapter 3 and a chapter 4 withholding agent status  
code regardless of the type of payment being made. If you  
are a U.S. financial institution (USFI), indicate your chapter 4  
status code as 01, except when a foreign branch of a USFI  
issues Form 1042-S (in such a case, indicate the chapter 4  
status code as 50).  
A withholding agent reporting payments made to a  
participating FFI or registered deemed-compliant FFI with  
respect to a chapter 4 reporting pool must include the name  
and address of the FFI in boxes 13a through 13g as well as  
29  
Instructions for Form 1042-S (2024)  
             
the FFI's GIIN and country code. The GIIN reported must be  
the GIIN of the branch to whom the withholding agent is  
making the payment.  
these recipients (excluding a recipient receiving a payment  
subject to section 1446(a) or (f) withholding), enter exemption  
code 01 in box 3a or exemption code 14 in box 4a.  
A QI reporting payments made to a PAI on a withholding  
Any foreign person claiming a reduced rate of, or  
rate pool basis must include the name and address of the PAI  
in boxes 13a through 13g.  
exemption from, tax under a tax treaty between a foreign  
country and the United States, unless the recipient provides  
an FTIN (in such case, use box 13i), or unless the income is  
an unexpected payment (as described in Regulations section  
1.1441-6(g)) or consists of dividends and interest from stocks  
and debt obligations that are actively traded; dividends from  
any redeemable security issued by an investment company  
registered under the Investment Company Act of 1940  
(mutual fund); dividends, interest, or royalties from units of  
beneficial interest in a unit investment trust that are (or were,  
upon issuance) publicly offered and are registered with the  
Securities and Exchange Commission under the Securities  
Act of 1933; and amounts paid with respect to loans of any of  
the above securities. In the latter case, you must use income  
code 13, 51, 52, 53, or 54.  
In the case of foreign joint owners, Form 1042-S can only  
list one of the owners as the recipient in box 13a. Form  
1042-S must not be completed with more than one of the  
joint owners as the recipient.  
If the recipient is a QI acting as a QDD with respect to the  
payment, enter the name of the QDD (identifying the QDD by  
the name used for the QDD on the Form W-8IMY it provides,  
which should include a branch identifier, if applicable).  
If a disregarded entity (or a branch) that is required to  
provide a TIN on Form W-8IMY is identified in Part II of the  
Form W-8BEN-E, include the name of the disregarded entity  
(or the jurisdiction of the branch) in a parenthetical after the  
name of the recipient.  
Any nonresident alien individual claiming exemption from  
Box 13b, Recipient's country code. You must enter the  
code (from the list at IRS.gov/CountryCodes) for the country  
of which the recipient claims residency under that country's  
tax laws. Enter “OC” (other country) only when the country of  
residence does not appear on the list or the payment is made  
to an international organization (for example, the United  
Nations). If the recipient is unknown, leave box 13b blank and  
enter "Unknown Recipient" in box 13a, Recipient's name. If  
you are making a payment to a QI, QSL, WP, or WT, or if you  
are a QI, QSL, WP, or WT and are making a payment to a QI,  
WP, or WT withholding rate pool, enter the country code of  
the QI, QSL, WP, or WT. Also, if you are making a payment to  
a participating FFI or registered deemed-compliant FFI's  
chapter 4 reporting pool, enter the country code of the  
participating FFI or registered deemed-compliant FFI or  
branch of or disregarded entity owned by such FFI receiving  
the withholdable payment and that was listed on Part II of  
either the Form W-8BEN-E or W-8IMY.  
tax under section 871(f) for certain annuities received under  
qualified plans.  
A foreign organization claiming an exemption from tax  
solely because of its status as a tax-exempt organization  
under section 501(c) or as a private foundation.  
Any QI other than a disclosing QI (which is not a recipient).  
Any WP or WT.  
Any nonresident alien individual claiming exemption from  
withholding on compensation for independent personal  
services.  
Any U.S. branch of an FFI or territory FI that is treated as a  
U.S. person.  
Any QSL that was paid a substitute dividend.  
In all other cases, if you know the recipient's TIN or if a  
foreign person provides a TIN on Form W-8, but is not  
required to do so, you must include the TIN on Form 1042-S.  
A U.S. TIN is also required on a Form 1042-S used by a  
recipient to claim credit for (or a refund of) the withholding.  
If exemption code 04 (exempt under tax treaty)  
appears in box 3a or if a reduced rate of withholding  
!
You must include a GIIN if you are required to collect a  
GIIN for the recipient under the requirements documenting  
the payee under chapter 4. If you make a payment to a  
disregarded entity or branch that is identified in Part II of Form  
W-8BEN-E, then report the GIIN of the disregarded entity or  
branch provided in that section.  
CAUTION  
based on a tax treaty is entered in box 3b, the  
country code entered in box 13b must be a country with  
which the United States has entered into an income tax  
treaty.  
Boxes 13c and 13d, Recipient's address. In most cases,  
you must enter a foreign address in boxes 13c and 13d.  
However, there are limited exceptions. For example, you may  
enter a U.S. address when reporting payments of scholarship  
or fellowship grants (income code 16).  
For addresses outside the United States or its  
commonwealths and territories, follow the foreign country's  
practice for entering the postal code.  
Boxes 13f and 13g, Recipient’s  
Chapter 3 and Chapter 4 Status  
Codes  
Enter the recipient status code from the list of Recipient  
Status Codes in Appendix B, later. The following special  
instructions apply for chapter 3 status codes.  
For addresses within the United States, use the U.S.  
Postal Service two-letter abbreviation for the state name. Do  
not enter “United States” or “U.S.”  
If income code 42 (earnings as an artist or athlete – no  
central withholding agreement) or 43 (earnings as an artist or  
athlete – central withholding agreement) is used in box 1, use  
recipient code 22 (artist or athlete) instead of recipient code  
16 (individual), 15 (corporation), or 08 (partnership other than  
withholding foreign partnership or publicly traded  
partnership).  
If you want to enter the recipient's account number, use  
box 13k.  
Boxes 13e and 13h, Recipient's U.S.  
TIN and GIIN  
If you are making a payment to an NQI or flow-through  
entity, in most cases you must use the recipient code that  
applies to the type of recipient who receives the income from  
the NQI or flow-through entity.  
You must obtain and enter a U.S. TIN for any of the following  
recipients.  
Any recipient whose income is effectively connected with  
Use recipient code 08 (partnership other than withholding  
the conduct of a trade or business in the United States. For  
foreign partnership or publicly traded partnership) only if you  
30  
Instructions for Form 1042-S (2024)  
       
are reporting a payment of income that is effectively  
connected with the conduct of a trade or business of an NWP  
in the United States or that is subject to reporting under  
section 1446(f). You may, however, use recipient code 08 as  
the chapter 3 status code if you are using a chapter 4 pooled  
reporting code with respect to a payment made to an NWP.  
See the instructions later on use of recipient codes when  
reporting pools. Otherwise, follow the rules that apply to  
payments to flow-through entities.  
entity that is a participating FFI or registered  
deemed-compliant FFI.  
Only use recipient code 15 (nonparticipating FFI) or 30  
(recalcitrant account holder) if you are reporting directly to the  
of withholdable payments, earlier. If you are reporting the  
chapter 4 reporting pools of recalcitrant account holders of a  
participating FFI, registered deemed-compliant FFI, or QI,  
use codes 42 through 49. Only use chapter 4 reporting pool  
code 48 (U.S. payees pool) if a participating FFI or registered  
deemed-compliant FFI has provided a Form W-8IMY  
certifying that it meets the requirements to include the  
account holder in a withholding rate pool of U.S. payees and  
that is associated with a withholding statement allocating the  
payment or a portion of the payment to a chapter 4  
Use recipient code 21 (Unknown Recipient) only if you  
have not received a withholding certificate or other  
documentation for a recipient or you cannot determine how  
much of a payment is reliably associated with a specific  
recipient, or you pay an amount realized subject to section  
1446(f) withholding to an NQI and you do not agree with the  
NQI to report the NQI's account holders on Form 1042-S. Do  
not use this code because you cannot determine the  
recipient's status as an individual, corporation, etc. The  
regulations under chapter 3 provide rules on how to  
determine a recipient's status when a withholding agent does  
not have the necessary information.  
withholding rate pool of U.S. payees. Only use chapter 4  
reporting pool code 49 (QI-Recalcitrant Pool-General) if you  
are reporting recalcitrant account holders of a QI.  
Use recipient code 17 (U.S. branch - treated as a U.S.  
person) if you are making a payment to a U.S branch treated  
as a U.S. person (or recipient code 04 for a Territory FI  
treated as a U.S. person).  
Use recipient code 13 (qualified securities lender –  
qualified intermediary) or 14 (qualified securities lender –  
other) if you make a payment to a QSL.  
Use recipient code 26 (excepted NFFE – other) if you are  
reporting to an NFFE treated as a U.S. person.  
Only use recipient code 29 (unknown recipient) if you have  
Only a QI may use recipient codes 29 (PAI withholding rate  
pool – general) and 30 (PAI withholding rate pool – exempt  
organizations). Only a QI, WP, or WT that made a pooled  
reporting election for chapter 3 purposes may use recipient  
codes 31 (agency withholding rate pool – general), 32  
(agency withholding rate pool – exempt organization), 27  
(withholding rate pool – general), and 28 (withholding rate  
pool – exempt organization) for chapter 3 purposes.  
not received a withholding certificate or other documentation  
with respect to a withholdable payment from an intermediary  
or flow-through entity. Only use this code if you also used  
recipient code 21 (unknown recipient) as the chapter 3 status  
code. If you have not received a withholding certificate or  
other documentation from an intermediary or flow-through  
entity, you must include the entity’s information in boxes 15a  
through 15i. You may also use recipient code 29 if you are  
reporting a withholdable payment to a recipient that is not  
subject to withholding under the terms of an IGA and the  
recipient's account is not required to be reported as a U.S.  
account or nonconsenting U.S. account (for example, an  
undocumented individual with no U.S. indicia).  
Recipient code 28 or 30 should be used only for pooled  
account holders that have claimed an exemption based on  
their tax-exempt status and not some other exemption (for  
example, treaty or other Internal Revenue Code exception). A  
QI acting as a QDD may use only pooled reporting codes 27  
and 28. If you are a QI (including a QI acting as a QDD), WP,  
WT, or QSL using a chapter 3 pooled reporting code with  
respect to a payment, do not include a chapter 4 status code  
unless making such payment to a PAI or certain partnerships  
Use recipient code 33 (U.S. reportable account) if you are  
reporting the recipient's account as a U.S. reportable account  
under the terms of a Model 1 IGA and the recipient does not  
meet the applicable requirements to be included in a pool of  
U.S. payees because the account holder is subject to  
chapter 3 withholding.  
Use recipient code 35 (qualified derivatives dealer) if you  
make a payment to a QI that is acting as a QDD with respect  
to the payment.  
Use recipient code 34 (Nonconsenting U.S. account) if you  
are reporting the recipient's account as a nonconsenting U.S.  
account under the terms of a Model 2 IGA and the recipient  
does not meet the applicable requirements to be included in  
a pool of U.S. payees because the account holder is subject  
to chapter 3 withholding.  
A U.S. withholding agent making a payment to any other  
QI (other than a disclosing QI) should use recipient code 12  
and recipient code 09 or 11 if it is making a payment to a WP  
or WT, respectively.  
Use recipient code 05 (U.S. branch-treated as U.S.  
Use recipient code 37 (undocumented preexisting  
person) if you make a payment to a U.S. branch or territory FI  
treated as a U.S. person.  
obligation) for an obligation that a withholding agent has not  
documented and the payment being reported was made  
before the expiration of the time period allowed for  
documenting the obligation and thus the withholding agent  
was not required to apply the presumption rules to determine  
the payee's chapter 4 status.  
A chapter 4 status code is required only if the payment  
is a withholdable payment or when a participating FFI or  
registered deemed-compliant FFI provides a chapter 4  
withholding rate pool of U.S. payees. The chapter 4 status  
code may be determined under the applicable IGA by a  
withholding agent that is an FFI subject to such an  
agreement. The following special instructions apply for  
chapter 4 status codes.  
Use recipient code 39 (account holder of excluded  
financial account) if you are reporting amounts paid with  
respect to an obligation that is excluded from the definition of  
financial account for chapter 4 purposes (see Regulations  
section 1.1471-5(b)(2)).  
If you are making a withholdable payment to a U.S. branch  
Use recipient code 41 (NFFE subject to 1472 withholding)  
of an FFI, use the applicable chapter 4 status code for the  
country of residence for an entity that is a participating FFI or  
registered deemed-compliant FFI. Otherwise, use the  
chapter 4 status code for any other foreign branch of the  
if you are reporting amounts paid to a specific recipient that is  
an NFFE that you (or another withholding agent) withheld  
upon under section 1472 (that is, you are reporting amounts  
31  
Instructions for Form 1042-S (2024)  
in boxes 7 through 9) unless the NFFE is treated as a  
recalcitrant account holder under Regulations section  
1.1471-5(g), in which case, use code 30 (recalcitrant account  
holder).  
Box 13k, Recipient’s Account Number  
If you are a financial institution reporting amounts paid to your  
direct account holder with respect to an account maintained  
by you at your U.S. office or U.S. branch, you must report the  
recipient’s account number in box 13k. If the amount is paid  
through an NQI or flow-through entity, you are not required to  
use this box.  
If you received a withholding certificate or other  
documentation with respect to a withholdable payment from  
an intermediary or flow-through entity that is a participating  
FFI or deemed-compliant FFI (other than a WP, WT, or QI that  
assumes primary withholding responsibility) and cannot  
reliably associate the payment with documentation to  
determine the payee's chapter 4 status (or with a chapter 4  
withholding rate pool), you must report the recipient as  
“Unknown Recipient” and include the entity's information in  
boxes 15a through 15i (to the extent provided).  
Note. A U.S. financial institution or a U.S. branch of an FFI is  
required to report payments of the same type of income (as  
determined by the income code in box 1) made to multiple  
financial accounts held by the same beneficial owner at a  
U.S. office of such institution on a separate Form 1042-S for  
each account. For this purpose, a financial account is an  
account described in Regulations section 1.1471-5(b)(1).  
Report the identifying number assigned to such account (or  
its functional equivalent in the absence of an account number  
for the recipient).  
If you are reporting a chapter 4 pooled reporting code with  
respect to a withholdable payment to an intermediary or  
flow-through entity, use the chapter 3 status code for the  
intermediary or flow-through entity as the recipient code.  
If you are a QI, WP, or WT reporting direct account holders,  
do not include a chapter 3 status code for the recipient if you  
are using a chapter 4 reporting pool code as the recipient’s  
chapter 4 status code.  
Box 13l, Recipient’s Date of Birth  
Use box 13l to enter the recipient’s date of birth. The correct  
format if entered is YYYYMMDD (for example, enter  
“20001205” for a date of birth of December 5, 2000). A  
financial institution making a payment with respect to a  
financial account (as defined in Regulations section  
1.1471-5(b)) maintained at its U.S. office or U.S. branch must  
report the recipient's date of birth (if the recipient is an  
individual) to the extent that such recipient has furnished  
documentation that provides a date of birth or the recipient's  
date of birth is identified in any of the withholding agent's  
files. See Regulations section 1.1441-1(e)(2)(ii)(B) for more  
information regarding a withholding agent's obligation to  
obtain and report a recipient's date of birth.  
If you are making a withholdable payment to a recipient  
that is a restricted distributor (as defined in Regulations  
section 1.1471-5(f)(4)), use recipient code 10 (certified  
deemed-compliant FFI - other).  
Box 13i, Recipient's Foreign Tax  
Identification Number  
Use box 13i to enter the recipient’s identification number  
used in the recipient’s country of residence for tax purposes.  
You must obtain and enter an FTIN for any of the following  
recipients.  
Any foreign person claiming a reduced rate of, or  
Boxes 14a and 14b, Primary  
exemption from, tax under a tax treaty between a foreign  
country and the United States if such person did not provide  
a U.S. TIN and the income is not the type for which an  
exemption from the TIN requirement applies (see the  
instructions for boxes 13e and 13h, earlier).  
Withholding Agent's Name and EIN  
If you are an intermediary or flow-through entity reporting  
amounts withheld by another withholding agent (the primary  
withholding agent) in box 8, you must provide the name and  
EIN of the withholding agent that withheld the tax. If multiple  
withholding agents withheld amounts reported on the same  
Form 1042-S, report the name of any one of the withholding  
agents that withheld amounts. Otherwise, leave blank.  
Any recipient of a payment made with respect to a financial  
account (as defined in Regulations section 1.1471-5(b))  
maintained at your U.S. office or branch, if you are a financial  
institution, to the extent that such recipient has furnished a  
withholding certificate that provides an FTIN, or you obtain  
the FTIN under the alternative procedures described in  
Regulations section 1.1441-1(e)(2)(ii)(B), or the recipient's  
FTIN is identified in any of your electronically searchable  
information. See Regulations section 1.1441-1(e)(2)(ii) for  
more information regarding a withholding agent's obligation  
to obtain and report a recipient's FTIN.  
Box 15, Pro-Rata Basis Reporting  
Checkbox  
Withholding agents must check box 15 to notify the IRS that  
an NQI that used the alternative procedures of Regulations  
section 1.1441-1(e)(3)(iv)(D) failed to properly comply with  
those procedures. See Pro-rata reporting to NQI, earlier, for  
additional information.  
Box 13j, LOB Code  
If you are making a payment for which a beneficial owner that  
is an entity has claimed a reduced rate of withholding under  
an income tax treaty and has provided documentation that  
establishes the limitation on benefits (LOB) article under  
which the beneficial owner qualifies, enter the applicable  
LOB code from Appendix B, later. See the Instructions for  
Form W-8BEN-E for a description of each of the LOB codes.  
If you are a QI, WP, or WT reporting a chapter 3 pool for  
which a reduced rate of withholding under an income tax  
treaty applies, do not include an LOB code.  
Boxes 15a Through 15i, Intermediary/  
Flow-Through Entity's Name, Status  
Code, Country Code, Address, EIN,  
GIIN, and Foreign Tax Identification  
Number  
If you are reporting amounts subject to reporting for chapter 3  
or 4 purposes paid to a recipient whose withholding  
certificates or other documentation has been submitted to  
you (or should have been submitted to you) with a Form  
W-8IMY provided by an intermediary or flow-through entity,  
32  
Instructions for Form 1042-S (2024)  
             
you must include the name and address of the intermediary  
or flow-through entity with whose Form W-8IMY the  
withholding included on each form. Therefore, the total  
amounts reported on Forms 1042-S in box 2 (gross income)  
resulting from the distribution may, in some cases, exceed the  
actual amount of the distribution.  
recipient's Form W-8 or other documentation is associated.  
You must also include the intermediary or flow-through  
entity's chapter 3 and chapter 4 status codes and, if any, the  
TIN and GIIN of the intermediary or flow-through entity when  
provided or required to be collected by the withholding agent.  
If the intermediary or flow-through entity completed Part II of  
Form W-8IMY, then report the GIIN provided in that section. If  
you are making a payment to a U.S. branch not treated as a  
U.S. person that has certified that it is applying the rules in  
Regulations section 1.1471-4(d)(2)(iii)(C) (in order to avoid  
being withheld upon under chapter 4), use chapter 4  
intermediary code 18 (U.S. branch - not treated as a U.S.  
person (reporting under section 1471)).  
Boxes 17a Through 17c, State Income  
Tax Withheld and Related Information  
Include in these boxes information relating to any state  
income tax withheld.  
Amended Forms  
If you filed a Form 1042-S with the IRS and later discover you  
made an error on it, you must correct it as soon as possible.  
To correct a previously filed Form 1042-S, you will need to file  
an amended Form 1042-S. The amended form must have the  
same unique form identifier as the original form that is being  
amended. You must check the “Amended” box and provide  
the amendment number. The amendment number must be  
numeric and the length must be exactly one digit. Each time  
that you amend the same form (as determined by the unique  
form identifier), you must provide the amendment number in  
the box provided on the form (using “1” for the first  
Note. A withholding agent that is an intermediary or  
flow-through entity will leave these boxes blank unless it is  
making the payment to an intermediary or flow-through entity.  
Box 15f, Country code. You must enter the country code  
(from the list at IRS.gov/CountryCodes) for the country where  
the intermediary or flow-through entity is located.  
Box 15g, Intermediary or flow-through entity's foreign  
tax identification number. Use box 15g to enter the  
intermediary or flow-through entity's identifying number used  
in the country of residence for tax purposes. Box 15g is  
optional.  
amendment and increasing sequentially for each subsequent  
amendment).  
If you provide an amended Form 1042-S to a  
recipient, you must also file the amended form with  
!
CAUTION  
the IRS.  
Boxes 16a Through 16e, Payer's  
Name, TIN, GIIN, and Status Code  
Do not file an amended return if you provided Form  
1042-S to the recipient (Copies B, C, and D) and need to  
make corrections to such form prior to filing with the IRS. In  
such a case, you should file an original Form 1042-S with the  
correct information. Do not check the “Amended” box or  
indicate any amendment number. Provide a copy of the  
corrected Form 1042-S to the recipient. Note that the copies  
of the Form 1042-S provided to the recipients (Copies B, C,  
and D) must match the copy of the Form 1042-S that is filed  
with the IRS.  
See the definition of authorized agent, earlier, under  
Definitions. Include the payer's name, TIN, and GIIN if  
different from the withholding agent shown in boxes 12a, 12d,  
and 12e.  
If payment is being made by a transfer agent or a paying  
agent acting as a withholding agent on behalf of a payer,  
enter the chapters 3 and 4 status codes applicable to the  
status of the payer in boxes 16d and 16e.  
If you are a nominee that is the withholding agent for the  
amount of a PTP distribution subject to withholding under  
section 1446(a) (reporting income code 27), enter the PTP's  
information in boxes 16a through 16e. However, you must  
enter the PTP's EIN, GIIN (if any), and chapter 4 status only if  
included in your records for the PTP interest that relates to  
the distribution. This includes information in your securities  
master file (or similar document), or that is reported in a  
qualified notice issued by the PTP during the year of the  
distribution. A nominee should also enter the PTP information  
when using income code 58 (undetermined income) to report  
a PTP distribution or when using income code 57 to report an  
amount realized attributable to a PTP distribution.  
If any information you correct on Form(s) 1042-S changes  
the information you previously reported on Form 1042, you  
must also correct the Form 1042 by filing an amended return.  
To do this, see the Form 1042 instructions.  
If you are not filing electronically, follow these steps to  
amend a previously filed Form 1042-S.  
Step 1. Prepare a paper Form 1042-S.  
Enter all the correct information on the form, including the  
recipient name and address, money amounts, and codes.  
Enter an “X” in the “Amended” box at the top of the form  
and enter the amendment number.  
Amended checkbox. Enter an “X” in the “Amended”  
checkbox of Copies A, B, C, D, and E only if you are  
amending a Form 1042-S you previously filed with the IRS.  
You must provide statements to recipients showing the  
corrections as soon as possible regardless of the change to  
the Form 1042-S.  
Step 2. File the amended paper Form 1042-S with a Form  
1042-T. See the Form 1042-T instructions for information on  
filing these forms.  
Note. You must issue a separate Form 1042-S to complete  
boxes 16a through 16e for each PTP that makes a  
distribution of any of these types of income to the recipient.  
This requirement does not apply to a withholding agent or QI  
when reporting on a Form 1042-S using reporting pools.  
A PTP may report the same amount of a PTP distribution  
on a qualified notice as subject to both section 1446(f)  
withholding and other chapter 3 or 4 withholding (such as  
under section 1446(a)). See Regulations sections  
If you fail to correct Form(s) 1042-S, you may be  
1.1446-4(b)(4) and 1.1446(f)-4(c)(2)(iii). In this case, you  
must report the same amount on separate Forms 1042-S,  
with the appropriate income code and associated amount of  
subject to a penalty. See Penalties, earlier.  
!
CAUTION  
33  
Instructions for Form 1042-S (2024)  
         
unless the form displays a valid OMB control number. Books  
or records relating to a form or its instructions must be  
retained as long as their contents may become material in the  
administration of any Internal Revenue law. Generally, tax  
returns and return information are confidential, as required by  
section 6103.  
Privacy Act and Paperwork Reduction Act Notice. We  
ask for the information on this form to carry out the Internal  
Revenue laws of the United States. Sections 1441, 1442,  
1446 (for PTPs), 1471, and 1472 require withholding agents  
to report and pay over to the IRS taxes withheld from certain  
U.S. source income. Form 1042-S is used to report the  
amount of income and withholding to the payee. Form 1042  
is used to report the amount of withholding that must be paid  
over to the IRS. Section 6109 requires you to provide your  
identification number. Routine uses of this information  
include giving it to the Department of Justice for civil and  
criminal litigation, and to cities, states, the District of  
The time needed to complete and file this form will vary  
depending on individual circumstances. The estimated  
average time is 34 minutes.  
If you have comments concerning the accuracy of these  
time estimates or suggestions for making this form simpler,  
we would be happy to hear from you. Y