REVISED GUIDELINES FOR ELECTRONIC REPORTING OF FOREIGN PERSONS' U.S.-SOURCE INCOME.
Rev. Proc. 93-16; 1993-1 C.B. 487
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
26 CFR 601.602: Tax forms and instructions.
- Subject Areas/Tax Topics
- Index Termsforeign firms, withholdingfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation93 TNT 84-34
Superseded by Rev. Proc. 96-11
Rev. Proc. 93-16
NOTE: This revenue procedure may be used to prepare Tax Year 1992 Forms 1042S for submission to Internal Revenue Service (IRS) using any of the following:
Magnetic Tape
5 1/4-inch Diskette
3 1/2-inch Diskette
Electronic Filing (Via the Information Reporting Program Bulletin Board System (IRP-BBS))
This revenue procedure is normally updated for each tax year. Please read this publication carefully. Persons required to file may be subject to penalties for failure to file or failure to include correct information if they do not adhere to these instructions.
Table of Contents
Part A. General
Section 1. Purpose
Section 2. Nature of Changes--Current Year (Tax Year 1992)
Section 3. Where to File and How to Contact the IRS Martinsburg
Computing Center (IRS/MCC)
Section 4. Filing Requirements
Section 5. Form 8508, Request for Waiver from Filing Information
Returns on Magnetic Media
Section 6. Form 4419, Application for Filing Information Returns
Magnetically/Electronically
Section 7. Test Files
Section 8. Filing Forms 1042S Magnetically or Electronically
Section 9. Filing Due Dates
Section 10. Extensions of Time to File
Section 11. Replacement Files
Section 12. How to File Corrected Returns
Section 13. Major Problems Encountered
Section 14. Effect on Paper Documents
Section 15. Definition of Terms
Part B. Magnetic Media Specifications
Section 1. General
Section 2. Tape Specifications
Section 3. 5 1/4- and 3 1/2-Inch Diskette Specifications
Section 4. Electronic Filing Specifications
Section 5. Data Sequence Specifications
Section 6. The Transmitter "T" Record
Section 7. Recipient "Q" Record
Section 8. Withholding Agent "W" Record
Section 9. End of Transmission "Y" Record
PART A. GENERAL
SECTION 1. PURPOSE
.01 The purpose of this revenue procedure is to provide the specifications under which withholding agents may file Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, magnetically or electronically.
.02 This revenue procedure supersedes the following: Rev. Proc. 91-60, 1991-2 C.B. 844, published as Pub. 1187 (11-91), Specifications for Filing Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically or on Magnetic Tape, and 5 1/4-, or 3 1/2-Inch Magnetic Diskettes.
SEC. 2. NATURE OF CHANGES--CURRENT YEAR (TAX YEAR 1992)
.01 EDITORIAL CHANGES. Numerous editorial changes have been made to the publication. IRS recommends that filers read this publication in its entirety to ensure proper reporting. The following changes have been made to the revenue procedure:
a) The title of Part A, Sec. 3 has changed to "Where to File and How to Contact the IRS Martinsburg Computing Center IRS/MCC" to better reflect the contents of this section.
b) A new number is provided for the IRS/MCC fax machine in Part A, Sec. 3.05.
c) The Information Reporting Program Centralized Call Site is introduced and explained in Part A, Sec. 3.07.
d) An extension of time to file Forms 1042S magnetically or electronically will be granted for 90 days. Specific instructions for requesting an extension of time to file are provided in Part A, Sec. 10.
e) Withholding agents may request an extension of time to file Form 1042. An extension of time to file Form 1042S does not automatically provide an extension of time to file Form 1042. Refer to Part A, Sec. 10.08 for further information.
f) Information concerning computer viruses is provided in Part B, Sec. 1.03. It is unlawful to intentionally submit a computer virus to the IRS. Violators may be subject to fine and/or imprisonment.
g) Positions 6-14 of the Transmitter "T" record have been renamed to "Transmitter's Taxpayer Identification Number (TIN)" to accurately define the use of this field.
h) Positions 2-10 of the recipient "Q" record have been renamed to "Withholding Agent's Taxpayer Identification Number (TIN)" to accurately define the use of this field.
i) Positions 113-121 of the recipient "Q" record have been renamed to "Recipient's U.S. Taxpayer Identification Number (TIN)" to accurately define the use of this field.
j) Positions 122-136 of the recipient "Q" record have been renamed to "Account Number" to be consistent with paper Forms 1042S.
k) Positions 139-173 of the recipient "Q" record have been renamed to "Recipient Name Line One" to accurately define the use of this field.
l) Positions 174-208 of the recipient "Q" record have been renamed to "Recipient Name Line Two" to accurately define the use of this field.
m) Positions 209-243 of the recipient "Q" record have been renamed to "Recipient Name Line Three" to accurately define the use of this field.
n) Positions 357-358 of the recipient "Q" record have been renamed to "Recipient Code" to be consistent with paper Forms 1042S.
o) Positions 372-373 of the recipient "Q" record have been renamed to "Tax Rate" to be consistent with paper Forms 1042S.
p) Positions 374-384 of the recipient "Q" record have been renamed to "U.S. Federal Tax Withheld" to accurately define the use of this field.
q) Positions 420-428 of the recipient "Q" record have been renamed to "Payer's TIN" to be consistent with paper Forms 1042S.
.02 PROGRAMMING CHANGES.
a) The Country Codes (Pos. 137-138 of the recipient "Q" record) have been updated to reflect global political changes.
b) Guidance was provided in the Recipient Name Line One field (Pos. 139-173 of recipient "Q" record) stating that data reported in this field is required.
c) Guidance was provided in the Street Address field (Pos. 244-283 of recipient "Q" record) for reporting street address data in Recipient Name Line Two or Three fields when appropriate.
d) Guidance was added in the City field (Pos. 284-308 of recipient "Q" record) specifying what address parts must be reported for United States (U.S.) addresses and non U.S. addresses.
e) Note was added in the Postal Code field (Pos. 324-332 of recipient "Q" record) stating postal codes for United States, Canadian, and Australian addresses must be reported and formatted correctly.
f) Guidance was provided in the Country Name field (Pos. 335-354 of recipient "Q" record) stating a recipient's country of residence for address purposes must be reported.
g) Guidance was provided in the Income Code field (Pos. 355-356 of recipient "Q" record) stating an income code must be provided.
h) Note was added in Type of Recipient field (Pos. 357-358 of recipient "Q" record) to inform withholding agents a Recipient Code "01" must be entered when Income Code "21", "22", or "23" is entered.
i) Information was added in the Gross Income Paid field (Pos. 359-369 of recipient "Q" record) that a nonzero amount must be entered.
SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER (IRS/MCC)
.01 All Forms 1042S filed magnetically or electronically are processed at IRS/MCC. Inquiries concerning application procedures, extension of time to file, request for a waiver from the magnetic media filing requirements, or filing procedures specified in this revenue procedure should be directed to IRS/MCC. Filers may contact IRS/MCC by telephone at (304) 263-8700 (not a toll free number). The hours of operation are 8:30 a.m. to 6:00 p.m., Eastern Time.
.02 Send magnetic media files, and any correspondence to MCC at the following addresses:
If by U.S. Postal Service:
IRS, Martinsburg Computing Center
P.O. Box 1359
Martinsburg, WV 25401-1359
or
If by truck or air freight:
IRS, Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road
Martinsburg, WV 25401
.03 This revenue procedure and other IRS publications concerning magnetic and electronic filing of information returns are available through the IRP-BBS as "downloadable" files. Using IRP-BBS as a means of obtaining publications will provide faster access to this information. Additionally, publications will be available from IRP-BBS much earlier than the printed version. The IRP-BBS is operational 24 hours a day, 7 days a week. The telephone number is (304) 263-2749.
.04 The IRP-BBS software provides a menu-driven environment which allows filers to access different parts of the bulletin board. Whenever possible, IRS/MCC personnel will provide assistance in resolving communication problems with IRP-BBS.
.05 The telephone number for the IRS/MCC fax machine is (304) 264-5196.
.06 IRS/MCC has installed Telecommunications Devices for the Deaf (TDD). The number is (304) 267-3367.
.07 INFORMATION REPORTING PROGRAM CENTRALIZED CALL SITE
In 1991, IRS instituted a centralized call site to answer tax law questions related to information returns (Forms 1096, 1098, 1099, 1042S, 5498, 8027, W-2, W-2G, W-3, and W-4.) The Call Site is located at IRS/MCC and operates in conjunction with the Information Reporting Program. The Call Site provides service to financial institutions, employers, and other payers who file information returns. It is being phased in over a two-year period.
The Call Site is currently functioning as a pilot operation accepting inquiries from payers/employers calling from Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, Ohio, Indiana, Michigan, West Virginia, and Kentucky. The numbers to call are (304) 263-8700 or TDD (304) 267-3367. This is a toll call.
Payers/employers in other areas of the country should continue to call 1-800-829-1040. If the pilot operation is successful, the remaining states will be phased in October 1, 1993, when the Call Site will be available nationwide. Hours of operation for the Call Site during the pilot operation are 8:30 a.m. to 6:00 p.m. Eastern Time.
.08 Requests for paper returns, publications and forms not related to magnetic media processing MUST be requested by calling the IRS toll free number 1-800-829-3676.
SEC. 4. FILING REQUIREMENTS
.01 Withholding agents who are required to file 250 or more Forms 1042S with IRS must submit these forms on magnetic media. Even though the withholding agent is not required to file magnetically/electronically, IRS encourages withholding agents to do so.
.02 Filers who are required to submit their Forms 1042S on magnetic media may choose to submit their documents electronically instead. Filers who transmit their information electronically are considered to have satisfied the magnetic media filing requirements.
.03 The filing requirement applies individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN) (Social Security Number (SSN) or Employer Identification Number (EIN)). For example, if filing for a corporation with several branches or locations and each uses the same name and EIN, the filer must aggregate the total volume of returns to be filed for that EIN and apply the filing requirement accordingly.
.04 This requirement applies separately to original and corrected documents. For example, 300 original documents are filed magnetically or electronically. If 200 documents were filed with erroneous information, corrections may be submitted on paper forms.
.05 These requirements shall not apply if the withholding agent submits an application for and is granted an undue hardship waiver. (See Part A, Sec. 5.)
.06 For additional information on filing requirements, please refer to 1992 Instructions for Forms 1042 and 1042S.
SEC. 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
.01 Withholding agents required to file Form 1042S magnetically or electronically may receive a waiver if the requirement would create an undue hardship. The withholding agent may request a waiver by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.
.02 A separate Form 8508 must be submitted by each withholding agent.
.03 All waiver requests MUST be submitted at least 45 days before the due date of the return. Otherwise, the request will automatically be denied.
.04 In approximately 30 days the filer will receive confirmation of approval or denial of the waiver request. IRS recommends filers maintain a copy of the waiver request and the response for their records.
.05 Failure to provide all of the information requested on the Form 8508 and/or the cost estimates if applicable, will result in an automatic denial of the waiver request.
.06 An approved waiver will only provide exemption from magnetic or electronic filing for one tax year. A waiver may not be requested for more than one tax year at a time. If needed, the withholding agent must apply each year for a waiver.
.07 A copy of Form 8508 may be obtained from IRS/MCC or by calling 1-800-829-3676. Form 8508 may be photocopied, or computer-generated as long as it contains all the information requested on the original form.
.08 An approved waiver from filing information returns magnetically or electronically does not provide exemption from filing; the withholding agent must still file information returns on acceptable paper forms with the Philadelphia Service Center. Do not include a copy of the approved waiver with the paper forms.
SEC. 6. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 Withholding agents or their agents must complete and submit Form 4419, Application for Filing Information Returns Magnetically/Electronically, before they may file Forms 1042S magnetically or electronically. Applications may be submitted at any time. However, the Form 4419 should be filed at least 30 days before March 15 in order to allow time to receive a response from IRS/MCC and timely file the returns.
.02 A copy of Form 4419 may be obtained from IRS/MCC. Instructions on the back of this form should be read carefully. This form may be photocopied.
.03 The filer will receive an approval letter that will contain a five-digit Transmitter Control Code (TCC) beginning with the digits 22. DO NOT SUBMIT FORMS 1042S USING A TCC ASSIGNED FOR THE PURPOSE OF FILING OTHER RETURNS. Forms 1042S may not be filed electronically or magnetically until an application has been approved and a TCC assigned.
.04 Once a TCC has been assigned, it is not necessary to reapply each year. If the information provided on Form 4419 changes, (for example, the organization's name or the contact person) notify IRS/MCC in writing so the appropriate files can be updated. In ALL correspondence with IRS/MCC, include the TCC in order to assist IRS personnel in locating the correct files.
.05 If a service bureau prepared files in the past, but the withholding agent now wishes to prepare their files, it will be necessary to request a TCC by filing the application Form 4419.
.06 If a filer has been assigned a TCC to file magnetically and now choose to file electronically, it is not necessary to apply for another TCC.
.07 Filers must have a TCC to transmit data electronically. When initial contact is made with the IRP-BBS, filers will be instructed to assign their own password and do not need prior approval.
SEC. 7. TEST FILES
.01 IRS/MCC will assist new filers with their initial submission by reviewing test files. The records will be checked to determine if the files are formatted according to the specifications in the current revenue procedure.
.02 IRS does not require filers to submit test files; however, first time filers are encouraged to submit a test for review prior to the filing season.
.03 Application Form 4419 must be filed with IRS/MCC and a TCC must be assigned before test files are submitted.
.04 Approved withholding agents or their agents may submit test files to IRS/MCC. IRS/MCC requires that all test files be submitted between December 1 and February 15.
.05 Include a completed Form 4804, 4802, or computer-generated substitute. Clearly mark the "Test" box on Form 4804 and media label Form 5064. On Form 4804 in the block marked "Combined total number of Payee records reported" provide the total number of recipient "Q" records.
.06 If a test is submitted electronically, the filer will receive a prompt asking if this is a test file. The Forms 4804 and 4802 marked as "Test" must be submitted to MCC. Transmittals may be faxed to (304) 264-5196. Although faxed transmittals are acceptable, completed Forms 4804 and 4802 or computer-generated substitutes marked as "Test" must be sent to IRS/MCC within 2 days of the submission of the test file. Faxing the transmittal forms to IRS/MCC will allow processing of the data in advance of receipt of the actual transmittal forms.
.07 IRS/MCC will send an acknowledgement to indicate the test results. Unacceptable magnetic media files, along with documentation identifying the errors, will be returned to the filer for replacement. Resubmission of replacement magnetic media test files must be postmarked no later than February 15. Electronic filers will also receive documentation identifying errors. Electronically filed tests must be resubmitted on or before February 15.
.08 IRS/MCC will no longer return media once it has been successfully processed.
SEC. 8. FILING FORMS 1042S MAGNETICALLY OR ELECTRONICALLY
.01 When submitting files, include the following:
(a) A signed Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, or a computer-generated substitute. Form 4804 contains an affidavit that must be signed by the withholding agent, or an agent who has the authority to sign on behalf of the withholding agent. If a duly authorized agent signs Form 4804, the affidavit must contain the caption "For: (name of withholding agent)." Failure to sign the affidavit on Form 4804 will result in the file being returned as unprocessed. Although a duly authorized agent signs the affidavit, the withholding agent is held responsible for the accuracy of the Form 4804, and the withholding agent will be liable for penalties for failure to comply with filing requirements.
(b) A Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), or computer-generated substitute, if the filer transmits for multiple withholding agents and has the authority to sign the affidavit on Form 4804.
(c) The magnetic media with an external identifying label Form 5064. Mark the appropriate type of file checkbox (e.g., original) on Form 5064. Provide the Form 1042S TCC, tax year, transmitter's name, and number of Recipient "Q" records on Form 5064.
(d) A Form 4801, or a substitute, on the outside of the container which reads "DELIVER UNOPENED TO TAPE LIBRARY--MAGNETIC MEDIA REPORTING--BOX __ OF __." If there is only one container, mark the outside as Box 1 of 1. For multiple containers, use the sequence Box 1 of 3, 2 of 3, 3 of 3.
.02 Mail the magnetic media and transmittal Forms 4804 and 4802 together.
.03 The transmittal documents for Forms 1042S filed via IRP-BBS may be faxed to IRS/MCC at (304) 264-5196. However, the actual Form 4804, 4802 or computer-generated substitutes must be sent to IRS/MCC within 2 days of the date of submission or the due date of the return, whichever comes first.
.04 IRS will not pay for or accept "Cash on Delivery" or "Charge to IRS" shipments of tax information that an individual or organization is legally required to submit.
.05 IRS/MCC will not return filers' magnetic media after it has been successfully processed. Should filers wish to know if their media was received by IRS/MCC, a delivery service that provides certification of delivery is recommended.
.06 Do NOT report duplicate information. If Forms 1042S are filed on paper and magnetically/electronically, be sure that the same information is not included on both. This does NOT mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, a corrected return must be filed when the error is discovered.
.07 IRS will prepare the appropriate statements for transmittal to treaty countries.
SEC. 9. FILING DUE DATES
.01 Magnetic media and electronic reporting to IRS for Forms 1042S is on a calendar year basis. The date for filing paper documents will apply to magnetic media or electronic filing. Files must be submitted to IRS/MCC postmarked no later than March 15.
.02 Copies of Form 1042S information must also be furnished to the income recipient by March 15.
.03 If the due date falls on a Saturday, Sunday, or a legal holiday, the return is considered timely if filed on the next day that is not a Saturday, Sunday, or legal holiday.
.04 If the date to furnish the statement to recipient falls on a Saturday, Sunday, or a legal holiday, the statement is considered timely if it is furnished on the next day that is not a Saturday, Sunday, or a legal holiday.
SEC. 10. EXTENSIONS OF TIME TO FILE
.01 If a withholding agent is required to submit Forms 1042S magnetically/electronically to IRS/MCC, and is unable to do so by March 15, an extension of time to file may be requested. Submit a letter or Form 2758, Application for Extension of Time To File Certain Excise, Income, Information, and Other Returns, to request an extension of time. If approved, an extension will be granted for 90 days.
.02 In order to be considered for an extension of time, the letter or Form 2758 MUST be postmarked by the due date of the return. If requesting an extension of time for magnetic or electronic filing of Forms 1042S, the request must be sent to IRS/MCC. If submitting a letter, the request must include:
(a) The withholding agent's (or transmitter's, if filing for multiple withholding agents) name and address.
(b) The withholding agent's Taxpayer Identification Number (TIN).
(c) The tax year for which the extension of time is requested (i.e., 1992).
(d) The name and telephone number of a person to contact who is familiar with the request.
(e) The specific type of returns (i.e., Forms 1042S).
(f) The Transmitter Control Code (TCC) assigned to the organization or individual requesting the extension. (Please be sure to use the TCC assigned for Forms 1042S processing ONLY.)
(g) The reason for the delay and the date by which files will be submitted.
(h) If filing for multiple withholding agents, attach a list of all withholding agents and their TINs (EIN or SSN).
.03 Failure to provide a letter including all of the information requested above or a fully completed Form 2758, may result in an automatic denial of the request.
.04 Ordinarily, an extension of more than 90 days will not be granted, unless sufficient need is clearly shown. Under no circumstances will IRS/MCC grant an extension for more than six months to an applicant living in the United States. A request for additional time beyond 90 days must be submitted before the original extension of time has expired.
.05 An approved extension of time for magnetic and electronic filing does not provide additional time for supplying the statement to recipient. Requests for an extension of time to provide the recipient copy must be sent to the Director of the IRS District in which the filer resides or in which the business is located.
.06 A filer may only request an extension of time for the tax year of the returns that are due to be filed with IRS.
.07 If an extension of time to file magnetically or electronically is granted, do not include a copy of the letter granting the extension with Form 4804 or computer-generated substitute.
.08 Upon request, IRS/MCC will grant an extension of time to file Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, when also granting an extension of time to file Forms 1042S magnetically/electronically. Request an extension of time to file Form 1042 by submitting a separate Form 2758 or letter to IRS/MCC.
.09 If an extension of time to file Form 1042 only or paper Forms 1042S is being requested, file Form 2758 with the Internal Revenue Service Center, Philadelphia, PA 19255.
.10 An approved extension grants additional time to file the Forms 1042S with IRS, only; any tax due must still be paid timely.
SEC. 11. REPLACEMENT FILES
.01 Files are returned because of coding or format errors. These files are to be returned to IRS/MCC within 45 days from the date of notice or the withholding agent may be subject to a failure to file penalty. Therefore, returned files should receive prompt attention.
.02 When the magnetic media is returned to the transmitter for replacement, a listing identifying the type of errors and frequency of such errors will be provided. The transmitter must correct the problems and submit a replacement file to IRS/MCC.
.03 Some problems may not require corrective action. For example, certain recipients should have had tax withheld at a particular rate, but the withholding agent withheld at a different tax rate. The transmitter should verify that the tax rates in question are in fact the rates at which tax was withheld. Once verified, a letter must accompany the replacement file stipulating that the tax rates are accurate.
SEC. 12. HOW TO FILE CORRECTED RETURNS
.01 Forms 1042S are required to be filed magnetically or electronically if 250 or more returns are filed. This requirement applies separately to both original and corrected returns.
.02 The following definitions have been provided to help distinguish between a correction and a replacement:
A correction is media submitted by the payer to correct records that were successfully processed by IRS/MCC, but contained erroneous information.
A replacement is media that IRS/MCC has returned due to format errors encountered during processing. After necessary changes have been made, the media must be returned for processing.
.03 If Forms 1042S are filed magnetically or electronically, and later the filer determines that corrections are necessary, the corrections may be filed on paper if the 250 documents threshold has not been met.
.04 If the withholding agent has 250 or more corrections, they MUST be submitted to IRS/MCC magnetically or electronically unless a waiver has been granted. If a waiver was granted for original Forms 1042S, this waiver applies to the corrections as well.
.05 Corrected returns MUST NOT be included on the same media or sent in the same electronic transmission with original returns.
.06 Since corrected statements supersede information previously supplied, all required data fields must be completed. If corrections are submitted magnetically or electronically, code an "A" in Position 371 of the Recipient "Q" Record.
.07 If corrections are filed on paper documents, write "Correction" at the top. If the original Forms 1042S were filed magnetically or electronically, corrections filed on paper Forms 1042S must be marked "Correction to Magnetic Tape" at the top of each paper Form 1042S. Corrected documents must be a separate submission from original documents.
.08 For information on when an amended Form 1042 is required, refer to Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations.
SEC. 13. MAJOR PROBLEMS ENCOUNTERED
.01 Before submitting files, IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data submission. This preliminary review may eliminate the need for IRS/MCC to return the file for replacement, and therefore reduce the likelihood of a penalty assessment for incorrect submissions. If due to unavoidable circumstances the data would be unacceptable to IRS/MCC, (e.g., math or tax rate errors), include a letter of explanation with each submission.
.02 Failure to format records correctly will result in files being returned for replacement.
.03 Filers MUST use the unique Transmitter Control Code (TCC) assigned for Form 1042S reporting. Application procedures are provided in Part A, Sec. 6 of this revenue procedure.
.04 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must accompany each magnetic media shipment or electronic transmission. Forms 1042S filed magnetically or electronically are not considered complete until a signed Form 4804 is received by IRS/MCC.
.05 Recipient surnames are used to sort the recipient "Q" records. The recipient's surname should be reported first, followed by given names. However, if the recipient's surname is not entered first, the filer has the option to code an asterisk that immediately precedes the recipient's surname. If the surname is reported first, the asterisk MUST be omitted, since an asterisk is not valid in the first position of Recipient Name Line One.
.06 To be acceptable, records must be in a specific sequence. If this sequence is not followed, the file will be returned for replacement. (Refer to Part B, Sec. 5)
SEC. 14. EFFECT ON PAPER DOCUMENTS
.01 Magnetic or electronic reporting eliminates the need to submit paper Forms 1042S to IRS.
.02 The address for filing paper Forms 1042S, 1042 or 8233 (Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual) is:
Internal Revenue Service Center
Philadelphia, PA 19255
Do NOT send paper Forms 1042S, 1042, or 8233 to IRS/MCC.
.03 Form 1042 (Annual Withholding Tax Return for U.S. Source Income of Foreign Persons) is used to verify the number of Forms 1042S filed on paper or magnetically/electronically. In certain cases, a withholding agent may be required to attach a remittance to Form 1042.
SEC. 15. DEFINITION OF TERMS
Element Description
Asynchronous The types of data transmission most often used by
Protocols micro-computers, PCs and some mini-computers.
Asynchronous transmissions transfer data at
arbitrary time intervals using start-stop method.
Each character transmitted has its own start bit
and stop bit.
b Denotes a blank position. For compatibility with
IRS equipment, if using BCD recording mode, use
BCD bit configuration 010000 ("A" bit only) in
even parity, 001101 ("841" bits) in odd parity.
Blocked records Two or more records grouped together between
interrecord gaps.
Employer A nine-digit number assigned by IRS to a person
Identification for Federal tax reporting purposes.
Number (EIN)
Electronic Filing Submission of information returns using switched
telecommunications network circuits. These
transmissions use modems, dial-up phone lines, and
asynchronous protocols.
File For the purpose of this revenue procedure, a file
consists of all records submitted by a
transmitter.
Information An electronic bulletin board provides the ability
Reporting Program to transmit information returns via a personal
Bulletin Board computer (PC) using dial-up modems; provides
System (IRP-BBS) immediate access to the latest changes, updates,
and publications.
Magnetic Media Refers to 1/2-inch magnetic tape; 5 1/4- or 3
1/2-inch diskettes.
Multi-reel/ A group of tape reels or diskettes submitted under
diskette file one TCC where all media either end with a
Recipient "Q" Record or Withholding Agent "W"
Record, EXCEPT for the last media of the file,
which ends with an End of Transmission "Y" Record.
(Refer to Part B, Sec. 5 for data sequence)
Payer Person or organization who is the originator of
income and enters into a contractual agreement
with the withholding agent for the purpose
of disbursing income for the payer. For example,
Corporation X is about to declare a dividend.
Corporation X contracts Bank Y to calculate and
distribute such dividends to recipients, and be
responsible for withholding. Corporation X is
considered the Payer and Bank Y is considered the
Withholding Agent.
Recipient Person or organization receiving payments from a
withholding agent.
Social Security A nine-digit number assigned by the Social
Number (SSN) Security Administration (SSA) to an individual for
tax and wage reporting purposes.
Special Character Any character that is not a numeral, an alpha, or
a blank.
Taxpayer Refers to either a Social Security Number (SSN) or
Identification an Employer Identification Number (EIN).
Number (TIN)
Transmitter Person or organization who prepares and submits
files. May be the withholding agent or their
agent.
Transmitter A five-digit code assigned prior to filing. This
Control Code number is inserted in the "T" Record and must
(TCC) be present. A Form 4419 must be filed with IRS/MCC
to receive this number.
Withholding Agent A person or entity, U.S. or foreign, required to
withhold U.S. tax on payments of income subject to
withholding from U.S. sources. A withholding agent
may be an individual, partnership, corporation,
trust, estate, government agency (Federal, State
or local), association, or a tax-exempt foundation
or organization. The withholding agent is
responsible for the completeness, accuracy, and
timely submission of files.
PART B. MAGNETIC MEDIA SPECIFICATIONS
SECTION 1. GENERAL
.01 These specifications prescribe the required format and content of the records to be included in the file. Usually, IRS/MCC will be able to process, without translation, any compatible file. Deviations cannot and will not be permitted in any of the data fields.
.02 An external label, Form 5064, must appear on each tape and diskette submitted. The following information is needed on the label:
(a) Type of filing (i.e., Original).
(b) The tax year of the data (i.e., 1992).
(c) The transmitter's name.
(d) The five digit Transmitter Control Code (TCC).
(e) Operating system software and hardware used to create the file (i.e., MS-DOS, IBM PS/1).
(f) The total number of "Q" records in the file.
(g) Transmitter's media number. The number assigned to the media by the transmitter.
(h) The sequence of each tape or diskette (i.e., 001 of 008, 002 of 008, ..., 008 of 008).
Information provided on the Form 5064 will assist IRS in identifying information that is reported and in locating a specific file if it is necessary to return the file to the transmitter.
.03 Filers are REQUIRED to submit virus-free data to IRS/MCC for processing. Any media containing a computer virus will be returned for replacement. Anyone intentionally transmitting a computer virus to IRS may be subject to fine and/or imprisonment.
.04 IRS advises that special shipping containers not be used since they will not be returned to the filer.
.05 Regardless of the type of media used or if returns are filed via the IRP-BBS, the record length must be 500 positions.
SEC. 2. TAPE SPECIFICATIONS
.01 In most instances, IRS can process any compatible magnetic tape file. Tapes must be EBCDIC or ASCII and must meet the following criteria:
(a) 9-track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:
(1) Odd parity
(2) Recording density--1600 or 6250 BPI
(3) If using UNISYS Series 1100, an interchange tape must be submitted.
(b) 9-track ASCII (American Standard Coded Information Interchange) with:
(1) Odd Parity
(2) Recording density--1600 or 6250 BPI
.02 All tape files must have the following characteristics:
(a) 0.5-inch (12.7 mm) wide computer grade magnetic tape,
(b) Tape thickness: 1.0 or 1.5 mils,
(c) Reel diameter: 10.5 inch (26.67 cm), 8.5 inch (21.59 cm), or 7 inch (17.78 cm) and
(d) Tape reels of up to 2400 feet (731.52 m).
.03 The tape records may be blocked or unblocked, subject to the following:
(a) Records must be a fixed length of 500 positions.
(b) Records may be blocked or unblocked, except header and trailer labels which must be unblocked.
(c) A block may not exceed 15,000 characters, although shorter blocks may be written as desired. If records are being blocked, but sufficient records are not available to fill a complete block, the block may either be "padded" with 9s to fill all unused positions or truncated after the last data record to create a "short block". Do NOT pad the block with blanks or create blank records (for example, Q followed by 499 blanks, etc.).
(d) Records may not span blocks.
(e) Two forms of blocking are acceptable:
(1) Only "Q" Records are blocked; all other records are unblocked.
(2) Header and trailer labels, if used, are unblocked.
SEC. 3. 5 1/4-INCH AND 3 1/2-INCH DISKETTE SPECIFICATIONS
.01 To be compatible, a diskette file must meet the following specifications:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) Data must be recorded in standard ASCII code.
(c) Records must be a fixed length of 500 bytes per record.
(d) Delimiter character commas (,) must not be used.
(e) Positions 499 and 500 of each record have been reserved for carriage return/line feed (cr/lf) characters.
(f) Filename of 1042TAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette, the filename 1042TAX will contain a 3 digit extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named 1042TAX.001, the second diskette will be 1042TAX.002, etc.
(g) A diskette file may consist of multiple diskettes as long as the filename conventions are followed.
(h) Diskettes must meet one of the following specifications:
Capacity Tracks Sides/Density Sector Size
1.44 mb 96tpi hd 512
1.44 mb 135tpi hd 512
1.2 mb 96tpi hd 512
720 kb 48tpi ds/dd 512
360 kb 48tpi ds/dd 512
320 kb 48tpi ds/dd 512
180 kb 48tpi ss/dd 512
160 kb 48tpi ss/dd 512
.02 5 1/4- and 3 1/2-inch diskettes are only acceptable if they were created using MS/DOS. IRS strongly recommends that a test file be submitted if this is the first time magnetic diskettes are used.
SEC. 4. ELECTRONIC FILING SPECIFICATIONS
.01 Electronic filing is being offered as an alternative to magnetic media or paper filing, but is not a requirement. Electronic filing will fulfill the magnetic media requirements for filers who are required to file magnetically.
.02 All inquiries concerning the electronic filing of Forms 1042S should be directed to IRS/MCC.
.03 Filers participating in the electronic filing program will submit their returns to IRS/MCC by way of modems, in lieu of magnetic media or paper filing. The Forms 1042S will be transmitted through the Information Reporting Program Bulletin Board System (IRP-BBS) using asynchronous protocols.
.04 Form 4804 may be faxed to (304) 264-5196 if returns are being submitted electronically. However, the original Forms 4804 and 4802 must be filed within 2 days of the transmission or before the due date of the return whichever comes first.
.05 The format of the "T," "Q," "W," and "Y" records are the same for electronically filed records as it is for 5 1/4- and 3 1/2-inch diskettes. When filing electronically, each transmission is considered a separate file; therefore, each transmission MUST adhere to the data sequence guidelines provided in Part B, Sec. 5.
.06 The IRP-BBS can be accessed at speeds up to 14,400 bps. The modulation speed is automatically negotiated so that users with slower modems should encounter no problems connecting with the IRP-BBS. The communication standards supported include 212A, V.22bis, and V.32. Point-to-point error control is supported using the V.42 standard backward compatibility with MNP class 2-4 modems.
.07 Data compression is encouraged for filers who submit information returns using the IRP-BBS. Data compression is supported using V.42bis with MNP class 5 compatibility. Data compression will result in throughput speeds up to 38,400 bps. IRS/MCC has the ability to decompress files created using several software compression programs. Data compression can be done alone or in conjunction with V.42bis hardware compression. The size of files transmitted electronically can be reduced by as much as 80 percent when data compression is used. Therefore, data compression is highly recommended.
.08 The setup parameters for IRP-BBS are: 8 data bits, no parity, 1 stop bit and full duplex mode.
.09 Filers using IRP-BBS will be required to assign their own password. Users should take the necessary precautions to assure that their password is not compromised. If a password is compromised, contact the Systems Operator (SYSOP) or the Electronic Filing Coordinator at IRS/MCC immediately.
.10 The IRP-BBS is available 24 hours a day, 7 days a week and may be accessed by dialing (304) 263-2749.
SEC. 5. DATA SEQUENCE SPECIFICATIONS
.01 The first position of each record indicates the record type:
Transmitter T
Recipient Q
Withholding Agent W
End of Transmission Y
.02 In order to be acceptable, records within the file must be in the following sequence:
(a) Single tape or diskette:
(1) A Transmitter "T" Record; then
(2) one or more Recipient "Q" Records followed by a corresponding Withholding Agent "W" Record then;
(3) additional "Q" and "W" Record sequences for other withholding agents as needed; then
(4) an End of Transmission "Y" Record.
(b) Multiple tapes: (see NOTE)
(1) A Transmitter "T" Record at the beginning of each tape; then
(2) sequences of Recipient "Q" Records followed by corresponding Withholding Agent "W" Records; then
(3) a sequence of Recipient "Q" Records may be continued from one tape to the next if they apply to the same withholding agent, without the necessity of repeating the "W" Record. The sequence might be, for example, QQQQ (end of one tape); TQQQQW (beginning of next tape); then
(4) an End of Transmission "Y" Record ending the last tape.
(c) Multiple diskettes: (see NOTE)
(1) A Transmitter "T" Record; then
(2) one or more Recipient "Q" Records followed by a corresponding Withholding Agent "W" Record; then
(3) additional "Q" and "W" Record sequences for other withholding agents as needed; then
(4) a sequence of Recipient "Q" Records may be continued from one diskette to the next if they apply to the same withholding agent, without the necessity of repeating the "W" Record. The sequence might be, for example, QQQQ (end of one diskette); QQQQW (beginning of next diskette); then
(5) an End of Transmission "Y" Record ending the last diskette.
NOTE: Due to differences in the processing of 1042S information filed on tapes and diskettes, it is required that there be a "T" record at the beginning of each tape, but not at the beginning of each diskette in a shipment.
.03 Tape header and trailer labels, record marks, and tape marks are all optional. If used, they must conform to the following standards:
(a) Header labels must begin with VOL1, VOL2, HDR1, HDR2, or 1HDR. They must be the first record(s) on the reel immediately before the Transmitter "T" Record. Header labels may not exceed 80 characters in length.
(b) Trailer labels must begin 1EOR, 1EOF, EOF1, or EOR1. They must be the last record(s) on the reel, after the "Y" record and tape mark (if a tape mark is used). Trailer labels may not exceed 80 characters in length.
(c) Tape marks must be IBM 001111 (Octal 17) in even parity. They always appear immediately after the "Y" record. If both header and trailer labels are used, the tape mark must follow the header label and must precede and/or follow the trailer label(s).
.04 The minimum file transmitted must consist of a Transmitter "T" Record, a Recipient "Q" Record, and Withholding Agent "W" Record, and an End of Transmission "Y" Record.
SEC. 6. THE TRANSMITTER "T" RECORD
.01 This record identifies the entity preparing and transmitting the file. The Transmitter and the withholding agent may be the same, but they need not be. The first record of a file MUST be a Transmitter "T" record, otherwise the file will be returned for replacement. The Transmitter "T" Record MUST be the first record on a tape (preceded only by header labels, if any) and MUST appear on each tape in the file. FOR TAPE FILES ONLY, the Sequence Number, position 4-5 of the "T" record must be increased by 1 (one) for each tape. The "T" Record is a fixed length of 500 positions.
NOTE: If the field is not applicable, allow for the field by entering blanks or zeros as instructed.
RECORD NAME: TRANSMITTER "T" RECORD
Positions Field Title Length Description and Remarks
---------------------------------------------------------------------
1 Record Type 1 Enter "T."
2-3 Tax Year 2 Enter year for which income
and withholding are being
reported (for example, enter
"92" for income and
withholding reported for
1992.) All recipient "Q" and
transmitter "T" Records on the
file for every withholding
agent MUST report payments for
this year only. Transmit
separate Forms 1042 and files
for different tax years.
4-5 Sequence Number 2 The two-digit sequence
assigned by the transmitter to
this media, starting with 01.
If Header Labels are used, the
sequence should be the same as
the Sequence Number.
6-14 Transmitter's 9 Enter the Taxpayer
Taxpayer Identification Number (Social
Identification Security Number (SSN) or
Number (TIN) Employer Identification Number
(EIN)) of the Transmitter. Do
NOT enter blanks, hyphens, or
alpha characters. A TIN
consisting of all the same
digit (e.g., 111111111) is not
acceptable.
15-54 Transmitter Name 40 Enter name of Transmitter of
file. Abbreviate if necessary
to fit 40-character limit.
Omit punctuation if possible.
Left-justify and blank fill.
55-94 Transmitter 40 Enter mailing address of the
Address transmitter. Street address
should include number, street,
apartment or suite number (or
P.O. Box if mail is not
delivered to street address).
Abbreviate as needed to fit
40-character limit. Omit
punctuation if possible.
Left-justify and blank fill.
95-114 City 20 Enter the city or town of
transmitter. If applicable
enter APO or FPO only. Left-
justify and blank fill.
115-116 State Code 2 Enter two-letter Post Office
Code as shown in the list
below ONLY. Do NOT spell out
the state name.
State Code
Alabama AL
Alaska AK
Arizona AZ
Arkansas AR
California CA
Colorado CO
Connecticut CT
Delaware DE
District of Columbia DC
Florida FL
Georgia GA
Hawaii HI
Idaho ID
Illinois IL
Indiana IN
Iowa IA
Kansas KS
Kentucky KY
Louisiana LA
Maine ME
Maryland MD
Massachusetts MA
Michigan MI
Minnesota MN
Mississippi MS
Missouri MO
Montana MT
Nebraska NE
Nevada NV
New Hampshire NH
New Jersey NJ
New Mexico NM
New York NY
North Carolina NC
North Dakota ND
Ohio OH
Oklahoma OK
Oregon OR
Pennsylvania PA
Rhode Island RI
South Carolina SC
South Dakota SD
Tennessee TN
Texas TX
Utah UT
Vermont VT
Virginia VA
Washington WA
West Virginia WV
Wisconsin WI
Wyoming WY
American Samoa AS
Federated States of Micronesia FM
Guam GU
Mariana Islands MP
Marshall Islands MH
Palau PW
Puerto Rico PR
Virgin Islands VI
NOTE: When reporting APO/FPO addresses use the following format:
Example:
Name PVT Willard J. Doe
Street Address Company F, PSC Box 100
/*/ City APO (or FPO)
State AE, AA, or AP
ZIP Code 098010100
/*/ AE is the designation for ZIPs beginning with 090-098, AA
for ZIP 340, and AP for ZIPs 962-966.
117-125 ZIP Code 9 Enter the ZIP code of the
transmitter for all U.S.
addresses, U.S. Territories or
Possessions, APO/FPO
addresses. For transmitters
using a five-digit ZIP code,
enter the ZIP code in the
left-most five positions and
zero fill the remaining four
positions. For transmitters
outside the U.S., enter nine
zeros only. Do NOT blank fill.
126-130 Transmitter 5 Enter your five-digit
Control Transmitter Control Code This
Code (TCC) MUST be the TCC assigned to
you for Forms 1042S reporting
ONLY.
131-498 Reserved 368 Blank fill.
499-500 Blank or 2 Enter blanks or carriage
Carriage Return return line feed (CR/LF).
Line Feed
TRANSMITTER "T" RECORD LAYOUT
[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]
SEC. 7. RECIPIENT "Q" RECORD
.01 The "Q" Record contains complete name and address information for both Withholding Agent and Recipient of Income, together with all the particulars of the income paid and tax withheld. Complete Withholding Agent data is required because each Recipient "Q" Record is treated as if it were a separate Form 1042S, and is processed independently of other records.
.02 Since the "Q" Record is restricted to one type of income, and one tax rate, under certain circumstances it would be necessary to write more than one "Q" Record. Following are some of the circumstances when more than one "Q" record for a payee would be required:
(a) Different sources of income. For example, Recipient X derived income from Capital Gains (Income Code 09) and Industrial Royalties (Income Code 10). A separate "Q" record must be reported for each income code; providing Gross Income Paid and U.S. Federal Tax Withheld pertaining to the corresponding code.
(b) Change in Country Code during the year. For example, the withholding agent received notification via Form 1001 that the recipient changed from country X to country Y. A separate "Q" record must be reported for each country code; providing Gross Income Paid, Tax Rate and U.S. Federal Tax Withheld. The amounts reported must be based on each country code and the period of time under that country code.
(c) Change in a country's tax treaty rate during the year. For example, effective April 1, country X changes its tax treaty rate from 10% to 20%. A separate "Q" record must be reported for each of the tax rates. Provide the Gross Income Paid, Tax Rate, and U.S. Federal Tax Withheld for the period of time under that tax rate.
(d) Gross Income Paid of more than one billion dollars. Report a Gross Income Paid of 99999999999 (dollars and cents) in the first Recipient "Q" record. The second Recipient "Q" record will contain the remaining money amount.
.03 Failure to provide multiple recipient "Q" records when necessary will generate math computation errors during processing and therefore, result in the file being returned for replacement.
.04 All recipient "Q" Records for a particular Withholding Agent must be written before the corresponding Withholding Agent "W" Record, and before "Q" Records for another Withholding Agent may begin.
NOTE: If the field is not applicable, allow for the field by entering blanks or zeros as instructed.
RECORD NAME: RECIPIENT "Q" RECORD
Positions Field Title Length Description and Remarks
---------------------------------------------------------------------
1 Record Type 1 Enter "Q".
2-10 Withholding 9 Enter the nine-digit Taxpayer
Agent's Identification Number of the
Taxpayer Withholding Agent. Do NOT
Identification enter blanks, hyphens, or
Number (TIN) alpha characters. A TIN
consisting of all the same
digit (e.g., 111111111) is not
acceptable. Do NOT enter the
recipient's TIN in this field.
11-45 Agent's Name 35 Enter the name of the
Withholding Agent. Abbreviate
as needed. Left-justify and
blank fill.
46-80 Agent's Address 35 Enter mailing address of the
withholding agent. Street
address should include number,
street, apartment or suite
number (or P.O. Box if mail is
not delivered to street
address). Abbreviate as
needed. Left-justify and blank
fill.
81-100 Agent's City 20 Enter the city or town (or
other locality name). Enter
APO or FPO only, if
applicable. Left-justify and
blank fill.
101-102 Agent's State 2 Enter the two-character state
Code abbreviation from the list in
Part B, Sec. 6, Field
Positions 115-116 of "T"
Record. If not a U.S. state or
APO/FPO identifier, blank fill
this field. Do not use any of
the two character Country
Codes in the State Code field.
103-111 Agent's ZIP Code 9 Enter nine numeric characters
for all U.S. addresses
(including territories and
possessions). If a five-digit
ZIP code is used, enter the
ZIP code in the left-most five
positions and zero fill the
remaining four positions. Zero
fill for addresses outside the
U.S.
112 Type of TIN 1 This field is used to identify
the Taxpayer Identification
Number (TIN) in positions
113-121 as either an Employer
Identification Number (EIN),
Social Security Number (SSN),
or indicate that the type is
undeterminable. Enter the
appropriate code from the
following table.
Type of TIN TIN
1 Employer Identification Number
(EIN)
2 Social Security Number (SSN)
Blank Enter a blank if type of TIN
is undeterminable
113-121 Recipient's U.S. 9 Enter the recipient's nine
Taxpayer digit Taxpayer Identification
Identification Number (TIN). An EIN or SSN
Number (TIN) MUST be entered when:
1. Exemption Code "1" is
entered in Position 370 of
the Recipient "Q" Record,
or
2. Exemption Code "2" or "4"
is entered in Position 370,
in conjunction with Income
Code 16 in positions 355-
356 of the Recipient "Q"
Record.
Enter blanks if the
recipient's TIN is unknown. Do
NOT enter the Withholding
Agent's TIN in this field. A
TIN consisting of all the same
digit (e.g., 111111111) is not
acceptable.
122-136 Account Number 15 Enter the account number
assigned by the withholding
agent to the recipient. This
number is used to identify a
specific account. This field
will be all blanks if account
numbers are NOT assigned. This
field may contain numeric or
alphabetic characters, blanks
or hyphens. Left-justify and
blank fill.
137-138 Country Code 2 REQUIRED. This field is used
to identify the country for
which the tax treaty benefits
are based. The rate of tax
withheld is determined by this
code. Enter the appropriate
code exactly as it appears in
the following table. This may
or may not be the same as the
country entered in the Country
Name field (Positions 335-354
of the Recipient "Q" Record.)
Do NOT enter "US" in this
field. Country Code "OC"
(country unknown or not
identified) is not to be used
unless absolutely necessary.
Whenever Country Code "OC" is
used, the rate of tax withheld
MUST equal 30 percent.
COUNTRY CODES
Country Code
Afghanistan AF
Albania AL
Algeria AG
American Samoa AQ
Andorra AN
Angola AO
Anguilla AV
Antarctica AY
Antigua and Barbuda AC
Argentina AR
Armenia AM
Aruba AA
Ashmore and Cartier Island AT
Australia AS
Austria AU
Azerbaijan AJ
Azores PO
Bahamas, The BF
Bahrain BA
Baker Island FQ
Bangladesh BG
Barbados BB
Bassas da India BS
Belarus BO
Belgium BE
Belize BH
Benin BN
Bermuda BD
Bhutan BT
Boliva BL
Bosnia and Hercegovina BK
Botswana BC
Bouvet Island BV
Brazil BR
British Indian Ocean Territory IO
Brunei BX
Bulgaria BU
Burkina Faso UV
Burma BM
Burundi BY
Cambodia CB
Cameroon CM
Canada CA
Canary Islands SP
Cape Verde CV
Cayman Islands CJ
Central African Republic CT
Chad CD
Chile CI
China, People's Republic of CH
Christmas Island (Indian Ocean) KT
Christmas Island (Pacific Ocean) KR
Clipperton Island IP
Cocos (Keeling) Island CK
Colombia CO
Comoros CN
Congo CF
Cook Islands CW
Coral Sea Islands Territory CR
Costa Rica CS
Croatia HR
Cuba CU
Cyprus CY
Czechoslovakia CZ
Denmark DA
Djibouti DJ
Dominica DO
Dominican Republic DR
Ecuador EC
Egypt EG
El Salvador ES
Equatorial Guinea EK
Estonia EN
Ethiopia ET
Europa Island EU
Falkland Islands (Islas Malvinas) FA
Faroe Islands FO
Fiji FJ
Finland FI
France FR
French Guiana FG
French Polynesia FP
French Southern and Antarctic Lands FS
Gabon GB
Gambia, The GA
Gaza Strip GZ
Germany GM
Georgia GG
Ghana GH
Gibraltar GI
Glorioso Islands GO
Greece GR
Greenland GL
Grenada GJ
Guadeloupe GP
Guam GQ
Guatemala GT
Guernsey GK
Guinea GV
Guinea-Bissau PU
Guyana GY
Haiti HA
Heard Island and McDonald Islands HM
Honduras HO
Hong Kong HK
Howland Island HQ
Hungary HU
Iceland IC
India IN
Indonesia ID
Iran IR
Iraq IZ
Iraq-Saudi Arabia Neutral Zone IY
Ireland EI
Isle of Man IM
Israel IS
Italy IT
Ivory Coast IV
Jamaica JM
Jan Mayen JN
Japan JA
Jersey JE
Johnston Atoll JQ
Jordan JO
Juan de Nova Island JU
Kazakhstan KZ
Kenya KE
Kingman Reef KQ
Kiribati KR
Korea, Democratic People's Republic of (North) KN
Korea, Republic of (South) KS
Kuwait KU
Kyrgyzstan KG
Laos LA
Latvia LG
Lebanon LE
Lesotho LT
Liberia LI
Libya LY
Liechtenstein LS
Lithuania LH
Luxembourg LU
Macau MC
Macedonia (Skopje) MK
Madagascar MA
Malawi MI
Malaysia MY
Maldives MV
Mali ML
Malta MT
Marshall Islands RM
Martinique MB
Mauritania MR
Mauritius MP
Mayotte MF
Mexico MX
Micronesia, Federated States of FM
Midway Islands MQ
Moldova MD
Monaco MN
Mongolia MG
Montenegro MW
Montserrat MH
Morocco MO
Mozambique MZ
Namibia WA
Nauru NR
Navassa Island BQ
Nepal NP
Netherlands NL
Netherlands Antilles NA
New Caledonia NC
New Zealand NZ
Nicaragua NU
Niger NG
Nigeria NI
Niue NE
Norfolk Island NF
Northern Ireland UK
Northern Mariana Islands CQ
Norway NO
Oman MU
Pakistan PK
Palmyra Atoll LQ
Panama PM
Papua New Guinea PP
Paracel Islands PF
Paraguay PA
Peru PE
Philippines RP
Pitcairn Islands PC
Poland PL
Portugal PO
Puerto Rico RQ
Qatar QA
Reunion RE
Romania RO
Russia RS
Rwanda RW
St. Kitts and Nevis SC
St. Helena SH
St. Lucia ST
St. Pierre and Miquelon SB
St. Vincent and the Grenadines VC
San Marino SM
Sao Tome and Principe TP
Saudi Arabia SA
Senegal SG
Serbia SR
Seychelles SE
Sierra Leone SL
Singapore SN
Slovenia SI
Solomon Islands BP
Somalia SO
South Africa SF
Spain SP
Spratly Islands PG
Sri Lanka CE
Sudan SU
Suriname NS
Svalbard SV
Swaziland WZ
Sweden SW
Switzerland SZ
Syria SY
Taiwan TW
Tajikistan TI
Tanzania, United Republic of TZ
Thailand TH
Togo TO
Tokelau TL
Tonga TN
Trinidad and Tobago TD
Tromelin Island TE
Trust Territory of the Pacific Islands PS
Tunisia TS
Turkey TU
Turkmenistan TX
Turks and Caicos Islands TK
Tuvalu TV
Uganda UG
Ukraine UP
United Arab Emirates TC
United Kingdom UK
Uruguay UY
Uzbekistan UZ
Vanuatu NH
Vatican City VT
Venezuela VE
Vietnam VM
Virgin Islands (British) VI
Virgin Islands (U.S.) VQ
Wake Island WQ
Wallis and Futuna WF
West Bank WE
Western Sahara WI
Western Samoa WS
Yemen YM
Yugoslavia YO
Zaire CG
Zambia ZA
Zimbabwe ZI
Other Countries OC
139-173 Recipient Name 35 REQUIRED. Provide the FULL
Line One name of the recipient. Enter
the surname of the recipient
FIRST followed by given names.
Enter an asterisk (*)
immediately before the surname
if the surname does not begin
in position 139. For example,
"JOHNb*DOE" is acceptable (b
denotes a blank.) If there is
more than one recipient, enter
the name of the first
recipient only. Since some
foreign recipients will not
have a Taxpayer Identification
Number (TIN), it is very
important that the FULL name
of the recipient be provided.
Titles, if any, must be
provided in Recipient Name
Line Two. If the recipient is
unknown, an account number
must be entered. Valid
characters are alphabetic,
numeric, ampersand (&), hyphen
(-), slash (/), asterisk (*),
period (.), comma (,),
apostrophe ('), or blank. Two
or more consecutive imbedded
blanks between name parts is
not acceptable. Failure to
code an asterisk before the
surname when it is not the
first name provided, will
result in your file being
returned for correction.
Left-justify and blank fill.
174-208 Recipient Name 35 Enter supplementary recipient
Line Two name information; otherwise
enter blanks. Use this line
for additional names (e.g.,
partners or joint owners), for
trade names, stage names,
aliases, or titles. Use this
line also for "care of,"
"via," or "through"
information. Valid characters
are alphabetic, numeric,
blank, ampersand (&), hyphen
(-), slash (/), pound sign
(#), period (.), comma (,),
apostrophe (') and the percent
(%). The percent (% (short for
"in care of")) is valid in the
first position only. Two or
more consecutive, imbedded
blanks between name parts is
not acceptable. Left-justify
and blank fill.
209-243 Recipient Name 35 Enter additional name data if
Line Three applicable; otherwise blank
fill. Specifications are
precisely as for Recipient
Name Line Two.
NOTE: 105 total characters are available for name information. IRS
encourages full identification of nonresident aliens (both
individuals and organizations) because data is furnished to their
governments in accordance with tax treaties and exchange of
information agreements.
244-283 Street Address 40 Enter the recipient's full
street address. Street address
should include number, street,
apartment or suite number (or
P.O. Box if mail is not
delivered to street address).
If the street, building,
military installation or other
name is too long for the
40-character allotment of this
field, Recipient Name Line Two
or Three may be used to report
address information (See the
NOTE below.) This street
address field may be all
blank, but only for legitimate
reasons; for example, the
recipient is from a small
town, islet or other place
where the town or island name
is sufficient to enable mail
to be received. Valid
characters are alphabetic,
numeric, blank, ampersand (&),
hyphen (-), slash (/), period
(.), comma (,), apostrophe
('), and pound sign (#). Two
or more consecutive, imbedded
blanks between address parts
and a blank in position 244
are NOT acceptable.
Left-justify and blank fill.
NOTE: If Recipient Name Line Two or Three fields are NOT used for
NAME INFORMATION, address data may be provided in these fields.
Street address data of 40 characters or less MUST be provided in the
Street Address field. Street addresses of 41 to 75 characters should
begin in Recipient Name Line Three and complete in the Street Address
Field. A street address of 76 or more characters should begin in
Recipient Name Line Two, continue in Recipient Name Line Three, and
complete in the Street Address Field.
284-308 City 25 REQUIRED. Enter the name of
City, Town, Village,
Municipality or rural place of
residence of the recipient.
Valid characters are as in
Street Address, EXCEPT the
pound sign (#), which is not
valid. Two or more
consecutive, imbedded blanks
between city parts and a blank
in position 284 are NOT
acceptable. For U.S. military
installations enter either APO
or FPO as applicable. The name
of the installation or ship
must be entered in the Street
address Line. Left-justify and
blank fill.
NOTE: For recipient addresses outside the United States, provide a
City, Province Name, Postal Code, and Country Name. Enter a City,
State Code, and ZIP Code for United States recipient addresses. Do
NOT provide a Country Name for United States addresses.
309-323 Province Name 15 Enter the name of the
Province, Foreign State (but
not the U.S. State), County,
Shire, District, Region, or
other political subdivision.
For many countries the
province (or other political
subunit) is an important part
of the postal address. For
Canada, the Province MUST be
entered. Valid characters are
alphabetic, numeric, blank,
ampersand (&), hyphen (-),
period (.), comma (,),
apostrophe (') or slash (/).
Two or more consecutive,
imbedded blanks between
province parts and a blank in
position 309 are NOT
acceptable. Left-justify and
blank fill.
Canadian Provinces and Codes
Province Province Code
Alberta AB
British Columbia BC
Manitoba MB
New Brunswick NB
Newfoundland NF
Nova Scotia (including Sable Island) NS
Northwest Territories NT
Ontario ON
Prince Edward Island PE
Quebec PQ
Saskatchewan SK
Yukon Territory YK
NOTE: A Canadian province may be expressed as a two-character code
from the Canadian Province Code List, written out in full, or
appropriately abbreviated.
324-332 Postal Code 9 Enter a Foreign or U.S. Postal
Code (ZIP Code). A Postal Code
is REQUIRED for United States,
Canadian, and Australian
addresses. Withholding Agents
should make an effort to
obtain postal codes for all
other countries. Only
alphabetic, numeric, and blank
characters are valid. Do not
omit any blanks that may
appear in the ZIP code. Use
the following table to format
Postal Codes for the three
required countries ("a"
denotes alpha characters, "n"
denotes numerics, "b" denotes
a blank.) All postal codes
should be left-justified and
blank filled.
Country Postal Code Format
United States nnnnnbbbb or nnnnnnnnn
Canadian anabnanbb
Australian nnnnbbbbb
333-334 U.S. State Code 2 Required for United States
addresses, including U.S.
territories. Enter the
appropriate postal identifier
listed for APO and FPO
addresses (see list of valid
state codes and postal
identifiers for APO/FPO
addresses in Part B, Sec. 6,
Positions 115-116 of
Transmitter "T" Record). ENTER
BLANKS IF THE RECIPIENT DOES
NOT HAVE A U.S. ADDRESS.
335-354 Country Name 20 REQUIRED. Enter the
unabbreviated name of the
recipient's country of
residence for all addresses
outside the United States.
Enter blanks if the RECIPIENT
RESIDES IN the U.S., including
U.S. territories and APO/FPO.
This field is NOT used to
indicate the rate of tax. This
may or may not be the same
country indicated in the
Country Code field (Positions
137-138 of the Recipient "Q"
Record). Omit political titles
such as "People's Republic
of," "Kingdom of," etc. Use
the English Language name
instead of the native language
name (for example, use
"Finland" and not "Suomi"). Do
not follow the country name
with parentheses containing
such information as Virgin
Islands (British). Valid
characters are alphabetic,
blank, ampersand (&), and
hyphen (-). Left-justify and
blank fill.
355-356 Income Code 2 REQUIRED. Enter the income
code EXACTLY as it appears
below. If a given recipient
receives more than one type of
income, additional "Q" Records
must be prepared, since only
one income code may be shown
per "Q" Record.
Code Type of Income
01 Interest paid by U.S. obligators-general
02 Interest on real property mortgages
03 Interest paid to a controlling foreign corporation
04 Interest paid by foreign corporations (U.S. Agents)
05 Interest on tax-free covenant bonds
06 Dividends paid by U.S. corporation general
07 Dividends paid by U.S. subsidiaries to foreign parent
corporations
08 Dividends paid by foreign corporations
09 Capital gains
10 Industrial royalties
11 Motion picture or television copyright royalties
12 Other royalties (e.g., copyright, recording,
publishing)
13 Real property income and natural resources royalties
14 Pensions, annuities, alimony, and/or insurance premiums
15 Scholarship or fellowship grants
16 Compensation for independent personal services /*/
17 Compensation for dependent personal services /*/
18 Compensation for teaching /*/
19 Compensation during training /*/
20 Earnings as an artist or athlete
21 Social Security benefits
22 Railroad Retirement (Tier 1) benefits
23 Railroad Retirement (Tier 2) benefits
24 Real estate investment trust (REIT) distributions of
capital gains
25 Trust distributions subject to IRC section 1445.
26 Unsevered growing crops and timber distributions by a
trust subject to IRC section 1445.
27 Publicly traded partnership distributions subject to
IRC section 1446.
28 Gambling winnings.
50 Other income (non-personal service compensation)
/*/ If compensations covered under Income Code "16-19" are
directly attributable to the recipient's occupation as artist or
athlete, Income Code "20" should be entered.
357-358 Recipient Code 2 REQUIRED. Enter the
appropriate code from list
below. No other codes or
values are valid. Whenever
appropriate, use Recipient
Code "09" instead of Recipient
Code "01", "02", or "03".
Code Type of Recipient
01 Individual
02 Corporation
03 Partnership
04 Fiduciary
05 Nominee
06 Government or
International
Organization
07 "Tax Exempt"
Organization
08 Private Foundation
09 Artist or Athlete
19 Other
20 Type of Recipient
unknown
NOTE: A Recipient Code "01" MUST be entered when the Income Code is
"21", "22", or "23".
359-369 Gross Income 11 REQUIRED. Enter the gross
Paid income amount in dollars and
cents. An income amount other
than zero MUST be shown. Do
NOT enter the decimal point.
For whole dollar amounts, the
cents must be shown by zeros.
For example, $1500 should be
shown as 00000150000 where the
left-most five zeros are
"filler" and the right-most
two zeros represent cents.
Right-justify and zero fill.
370 Exemption Code 1 REQUIRED. Enter the one-digit
exemption code from the list
below. If the rate of tax is
other than zero percent, enter
a zero in this field. If the
rate of tax is zero percent,
enter the code of 1-4 that
applies.
Code Description
Zero No exemption claimed,
rate of tax is above
zero percent.
1 Income is effectively
connected with a U.S.
trade or business. An
EIN or SSN must be
entered in Positions
113-121.
2 Income is exempt from
tax by the Internal
Revenue Code.
3 Income is non-U.S.
sourced.
4 No withholding per
treaty for this type of
income.
NOTE: If exemption Code "2" or "4" is used in conjunction with Income
Code "16" (Positions 355-356 in the Recipient "Q" Record), the
recipient's U.S. Taxpayer Identification Number (TIN) MUST be
provided in Positions 113-121 of the Recipient "Q" Record.
371 Correction 1 REQUIRED. Enter the one
Indicator position code to identify this
return as an original
issuance/total replacement of
a previously submitted return,
or a correction to a
previously submitted return.
(See Part A, Sec. 12.)
Code Description
Zero Original return
A Corrected return
372-373 Tax Rate 2 REQUIRED. Enter the
appropriate tax rate from the
table below. A valid rate MUST
be shown. Do not use percent
signs or decimal points. For
fractional rates, drop the
fraction (e.g., for 12 1/2 use
12, and for 27 1/2 use 27).
Valid tax rates are:
00 02 04 05
08 10 12 14
15 20 25 27
28 30 31 34
NOTE: When an exemption code of "1" or "4" is used for position 370,
the Tax Rate MUST be zero.
374-384 U.S. Federal Tax 11 Enter in dollars and cents the
Withheld amount of tax withheld, if
any. An amount MUST be shown
if the Tax Rate is other than
"00", or if income is not
otherwise exempt from
withholding. If Tax Rate "00",
the amount of tax withheld
should be zero. Specifications
are the same as for Positions
359-369 (Gross Income Paid).
Right-justify and zero fill.
385-419 Payer's Name 35 Enter the name of the Payer of
Income if different from the
Withholding Agent. Abbreviate
as needed. If Withholding
Agent and Payer are one and
the same, blank fill Payer's
Name. Valid characters are
alphabetic, numeric, blank,
ampersand (&), period (.),
comma (,), apostrophe (') and
hyphen (-). Left-justify and
blank fill.
420-428 Payer's TIN 9 Enter the Payer's Taxpayer
Identification Number if there
is an entry in the Payer Name
Field. Blank fill if unknown
or Payer's Name is blank.
429 Awaiting Form 1 If a filer is awaiting Form
W-8 Indicator W-8 from this recipient, enter
"Y"; otherwise, enter a blank.
430-439 Foreign Student 10 (For filers reporting Income
Withholding Code "15" in Position 355-356
Allowance Amount of the recipient "Q" record).
Enter in dollars and cents the
gross amount of withholding
allowances for a foreign
student, if using Income Code
"15" with respect to a payment
of U.S. source scholarships
and fellowship grants. Do NOT
enter decimal point. If the
Income Code in Position 355-
356 is other than "15", enter
blanks. Right-justify and zero
fill when a money amount is
reported.
440-449 Net Income 10 Enter in dollars and cents the
Amount net amount of income paid to a
foreign student. (Subtract the
Foreign Student Withholding
Allowance Amount (positions
430-439) from the Gross Income
Paid (positions 359-369) and
enter the total here.) Do NOT
enter a decimal point. If the
Income Code (positions 355-
356) is other than "15", enter
blanks. Right-justify and zero
fill if a money amount is
reported.
450-459 Amount of State 10 Not required. If State Tax has
Tax Withheld been withheld for any reason,
enter that amount here, in
dollars and cents. Right-
justify and zero fill. If no
entry, zero fill.
460-498 Reserved 39 Blank fill.
499-500 Blank or
Carriage Return 2 Enter blanks or carriage
Line Feed return line feed (CR/LF).
RECIPIENT "Q" RECORD LAYOUT
[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]
SEC. 8. WITHHOLDING AGENT "W" RECORD
.01 Enter a "W" Record after the last "Q" Record submitted for a particular Withholding Agent. The "W" Record serves as a summary of the preceding "Q" Record data, and enables IRS to cross check the correctness of information received.
.02 Several "W" Records for different withholding agents may appear on the same Transmitter's file. Also, the "W" Record may refer to "Q" Records on more than one reel, provided all of the preceding "Q" Records are for the same withholding agent.
.03 A "W" Record may only be followed by new Recipient "Q" Records for the next Withholding Agent, if any, or by a tape mark and/or trailer label when more reels follow this reel, or by an End of Transmission "Y" Record, when this is the last reel of the file. The "W" Record cannot be the last record on the file.
.04 Each "W" Record has a fixed length of 500 positions.
NOTE: If the field is not applicable, allow for the field by entering blanks or zeros as instructed.
RECORD NAME: WITHHOLDING AGENT "W" RECORD
Positions Field Title Length Description and Remarks
---------------------------------------------------------------------
1 Record Type 1 Enter "W".
2-3 Payment Year 2 Enter the last two digits of
the calendar year for which
income and withholding are
being reported. All recipient
"Q" Records must report
payments for this year ONLY.
Different tax years may not
appear on the same file.
4-12 Employer 9 Enter the nine-digit Employer
Identification Identification Number of the
Number (EIN) Withholding Agent. Omit the
hyphen.
13-47 Agent's Name 35 Enter the name of the
Withholding Agent, up to the
limit of 35 characters.
Abbreviate as needed, omitting
punctuation. Left-justify and
blank fill.
48-82 Agent's Address 35 Enter the mailing address of
the withholding agent. Street
address should include number,
street, apartment or suite
number (or P.O. Box if mail is
not delivered to street
address). Abbreviate as
needed, omitting punctuation.
Left-justify and blank fill.
83-102 City 20 Enter the city, town, or other
locality name. If applicable
enter APO or FPO only. Left-
justify and blank fill.
103-104 State 2 Enter the two-character
alphabetic state code or the
postal identifier for APO/FPO
addresses from the list in
Part B, Sec. 6, positions
115-116 of "T" Record.
105-113 ZIP Code 9 Enter nine numeric characters
for all U.S. addresses
(including territories,
possessions, and APO/FPO). For
five-digit ZIP codes, left-
justify and zero fill. Zero
fill for addresses outside the
U.S.
114-121 Total "Q" Record 8 Enter the total number of "Q"
Count Records for this withholding
agent; that is, the total
count of "Q" Records following
the last "W" Record, or if
this is the first "W" Record
on the file, the total number
of "Q" Records since the "T"
Record. The presence of a "T"
Record does not interrupt the
count, which may therefore
include consecutive "Q"
Records on more than one tape
reel. Right-justify and zero
fill unused positions.
122-134 Total Gross 13 Enter the total gross amount.
Amount Paid Calculate this total by adding
the gross income paid reported
in all "Q" Records counted in
the preceding Positions 114-
121. Do not "round off" this
total, since it is used to
verify the total money amount
from the "Q" records.
Right-justify and zero fill.
135-147 Total Tax 13 Enter the total tax withheld.
Withheld Calculate this total by adding
the tax withheld reported in
all "Q" records counted in the
preceding Positions 114-121.
Do not "round off" this total,
since it is used to verify the
total tax withheld from the
"Q" records. Right-justify and
zero fill.
148-498 Reserved 351 Blank fill.
499-500 Blank or
Carriage Return 2 Enter blanks or carriage
Line Feed return line feed (CR/LF).
WITHHOLDING AGENT "W" RECORD LAYOUT
[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]
SEC. 9. END OF TRANSMISSION "Y" RECORD
.01 The "Y" Record is a fixed record length of 500 positions and all positions listed are required. The "Y" Record is a summary of the number of withholding agents and total number of tape reels in the entire file.
.02 This record will be written after the last "W" Record of the entire file. End the last reel ONLY of a file with an End of Transmission "Y" Record. The "Y" Record may only be preceded by a "W" Record. It may only be followed by a tape mark, or a tape mark and a trailer label (if trailer labels are used), or a trailer label.
.03 Please note that if submitting a multi-reel file, there will only be one End of Transmission "Y" record. The End of Transmission "Y" record will be the last record in the final block on the last reel in the file.
RECORD NAME: END OF TRANSMISSION "Y" RECORD
Positions Field Title Length Description and Remarks
---------------------------------------------------------------------
1 Record Type 1 Enter "Y".
2-4 Withholding 3 Enter the total number of
Agent Count withholding agents on this
file. This count will be the
same as the total number of
"W" Records. Right-justify and
zero fill.
5-7 Reel Count 3 Enter the total number of
reels for this transmission.
Right-justify and zero fill.
8-498 Reserved 491 Blank fill.
499-500 Blank or 2 Enter blanks or carriage
Carriage Return return line feed (CR/LF).
Line Feed
END OF TRANSMISSION "Y" RECORD LAYOUT
[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]
- Institutional AuthorsInternal Revenue Service
- Cross-Reference
26 CFR 601.602: Tax forms and instructions.
- Subject Areas/Tax Topics
- Index Termsforeign firms, withholdingfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Electronic Citation93 TNT 84-34